Service Industry Growth : County’s Jobless Rate Drops to 3.2% in June

Orange County’s jobless rate dropped slightly in June to 3.2% from 3.4% in May, according to state employment statistics.

Only San Mateo County had a lower jobless rate, with 3.1%, according to the state Employment Development Department.

The slight dip in the local rate was attributed in part to growth in the ever-expanding services industry, which added 4,000 jobs last month. Dan A. Johnson, a labor analyst with the state Employment Development Department, said the growth was primarily in tourist-related areas.

Method Changed

Also contributing to the dip is a change in the method of computing unemployment statistics that took effect in May, Johnson said. That change resulted in a jump in the local jobless rate to 3.4%, compared to 2.9% in April. Johnson said he expects the jobless rate to continue to decline slightly before it stabilizes under the new methodology.

Both Los Angeles County and the Inland Empire experienced minor dips in unemployment. The jobless rate in Los Angeles County decreased to 5.1% from 5.2%, while the Riverside-San Bernardino area rate decreased to 6.1% from 6.2%.

California’s June unemployment rate was posted at 5.6%, falling from 6.3% in May.

Most economists consider an unemployment rate of less than 4% or 5% “full employment.” Many Orange County employers have found few applicants to fill entry-level or low-paying jobs, and have had to raise wages to attract job applicants.