After 2 straight years of significant job losses, economic conditions in the Pacific region are showing signs of improvement. The region added 15,600 nonfarm payroll jobs, a 0.4-percent increase, during the 12 months ending June 2011. The professional and business services and education and health services sectors led job growth in the region, with increases in both sectors of 2.5 percent, or 16,650 and 13,900 jobs, respectively.
The construction subsector had the largest percentage decline in nonfarm
payrolls, 4.6 percent, or a loss of 8,875 jobs because of the slowdown in residential and commercial construction. Moderate gains in nonfarm payrolls occurred in both California and Hawaii, but jobs declined in Arizona and Nevada during the 12 months ending June 2011. California
added 79,100 jobs, a 0.6-percent increase, during the 12 months ending June 2011 after losing 670,600 jobs,a 4.1-percent decline, during the previous 12 months.
Nonfarm payroll increases of 65,600 jobs, or 3 percent,in the professional and business services sector and of 40,300 jobs, or 2 percent, in the education and health services sector led the turnaround in employment, despite a decline in the construction subsector of 18,600 jobs, or 3.2%
San Francisco Bay Area and Southern California nonfarm payrolls increased by 4,075 jobs,or 0.1 percent, and 27,550 jobs, or 0.2 percent, respectively. During the 12 months ending July 2011, Hawaii added 4,325 jobs, a 0.7-percent increase, compared with the loss of 19,250 jobs during the previous 12 months.
The retail trade subsector realized the largest nonfarmpayroll gain, of 1,450 jobs, or 15.4 percent, during the 12 months ending June 2011 because of a 13%. Increase in tourist spending compared with spending during the previous 12 months. Nonfarm payrolls continued to decline in Arizona, which lost 10,250 jobs, a 0.4% decrease, during the 12 months ending June
2011 compared with the number of jobs a year earlier.
In Nevada, nonfarm payrolls fell by 9,325 jobs, or 0.8%, to an average of 1,124,100 jobs. The largest declines in both states came in the construction subsector,which lost 6,000 jobs, a 5.2-percent decline, in Arizona and 10,600 jobs, a 15.8-percent decline, in Nevada. During the 12 months ending June 2011, the average unemploymentrate in the region increased to 12% from 11.7% during the previous year. The average unemployment rate ranged from 6.5 percent in Hawaii to 14.6 percent in Nevada.
The sales housing market was soft in all four states of the Pacific region during the 12 months ending June 2011 because of high unemployment. According to Hanley Wood, LLC, new and existing home sales fell by 12% to 599,800 homes.
In Arizona, 112,200 homes sold, a 14% decline compared with the number sold
during the previous 12-month period, and the average home sales price declined by 7% to $170,200. In Arizona, REO (Real Estate Owned) sales as a percentage of existing home sales increased slightly to 53%.In the Phoenix metropolitan area, home sales declined by 9% to 47,750 homes, and the average sales price declined by 7% to $171,500.
During the 12 months ending June 2011, new and existing home sales fell by 12% in California, to 413,200 homes, and the average home price rose by 1% to $361,700. REO sales as a percentage of existing home sales decreased to 41% during the 12 months ending June 2011 from 44% a year earlier. In the San Francisco Bay Area, 66,500 homes sold during the 12 months ending June 2011, an 11% decline compared with the number sold during the previous 12 months, and the average home sales price increased by 2% to $557,100 during the same period.
