A SSESSING THE REGION VIA INDICATORS The Economy 1999-2004
The State of the Great central valley of California
Supporting the economic, social, and environmental well-being of California’s Great Central Valley
Great Valley Center 201 Needham Street, Modesto, CA 95354 Tel: 209 /522-5103 Fax: 209 /522-5116 www.greatvalley.org info@ greatvalley.org Produced by the Staff of the Great Valley Center
With Research Assistance from Alison McNally Anthony Zepeda Gene Barrera Citigroup Foundation Intern Sustainable Communities Leadership Sustainable Communities Leadership Program Fellow Program Fellow
With Special Assistance from the California Department of Employment Development Department
Liz Baker Bunny Bentley Nannette Potter Labor Market Consultant Labor Market Consultant Labor Market Consultant
Carla Barnes Joel Hessing Central Valley Regional Manager Area Services Group Manager Labor Market Information Division
Technical Assistance provided by the Information Center for the Environment at the University of California, Davis
Mike McCoy Co-director
Joshua Viers Karen Beardsley Nathaniel Roth Research Ecologist GIS Manager GIS Programmer
Report Advisors
Andrea Baker Michael Carroll Gary Freeman Merced Department of Workforce Fannie Mae Central Valley Partnership California Association of Resource Investment Conservation & Development Councils
Michael Locke Bob Nash Mark Nechoderm San Joaquin Partnership, Inc. Superior California Economic USDA Forest Service – PSW Research Development Corporation Station
Marc Nemanic Larry Orman LeeAnn Parry Tri-County Economic Development GreenInfo Network Kaiser Permanente, Fresno Corporation
Tim Ransdell Bob Rivinius Paul Saldana California Institute for Federal Policy California Building Industry Association Central California Economic Research Development Corporation
Brian Smith Rollie Smith California Department of Transportation Federal Interagency Task Force for the Economic Development of the San Joaquin Valley
Special Advisor Shawn Kantor Chair, Department of Economics University of California, Merced
For individuals with sensory disabilities, this document is available in alternate formats. Please call or write to Garth Hopkins at [email protected] or 916/654-8175, or use the CA Relay Service TTY number: 1-800-735-2929. Supporting the economic, social, and environmental well-being of California’s Central Valley
201 Needham Street Modesto, CA 95354 Phone: (209) 522-5103 Fax: (209) 522-5116 www.greatvalley.org
January 2005
Dear Friends:
We are pleased to present The State of the Great Central Valley: The Economy. Since 1999, the Great Valley Center has published a series of indicators reports that have defined the region, framed important issues, set baselines for assessing future trends, and raised awareness of critical challenges facing the rapidly growing and often underserved Valley. In annual installments, a cycle of five reports assesses different aspects of the region’s progress and quality of life: the Economy, the Environment, Community Well-Being, Public Health and Access to Care, and Education and Youth Preparedness.
In this report we revisit a number of economic indicators first reported five years ago. The data are divided into five general categories: population, income, and housing; business vitality; agriculture; transportation; and Federal and nonprofit spending.
We can now begin to address the question, “What progress are we making?” While there are some signs of improvement, the Central Valley continues to face major economic challenges. Per capita income is low, unemployment is high, housing is becoming less affordable, and the population continues to grow rapidly. Addressing these challenges will require sustained, concentrated effort throughout the Valley.
The Economy was developed in partnership with the California Department of Transportation and the California Employment Development Department’s Labor Market Information Division. The UC Davis Information Center for the Environment provided valuable assistance with all the maps and particularly with the centerpiece. The report also benefited from the insight of the 16-member Advisory Committee representing a diversity of economic perspectives.
The State of the Great Central Valley series has received major funding from The James Irvine Foundation and the William and Flora Hewlett Foundation. Additional support for this report was received from the California State University Chancellor’s Office, the Workforce Investment Boards of the San Joaquin Valley, Kaiser Permanente, and Citibank. We extend to all our partners and funders and to the staff who worked to make the report possible our appreciation for their support of and investment in the Central Valley.
Sincerely,
Carol Whiteside President T HE STATE OF THE GREAT CENTRAL VALLEY—THE ECONOMY Assessing the Region Via Indicators 1999–2004
What are Indicators? How to Use this Report: Indicators help to answer important questions such The data presented are a snapshot of information. as how well the economy is functioning, how the The indicator set can be used as a benchmark for schools are doing, or how air quality is improving measuring the economic health of the Valley. The or worsening. Indicators are powerful tools for region’s performance can be compared to other measuring and tracking the overall quality of regions and to the state as a whole. life and comparing performance against goals or benchmarks. The measurements help communities Using the information, analysis, and structure monitor changes by providing a baseline against provided in this report, individual communities may which future changes can be tracked. develop specific indicators tailored to their own concerns. It can serve as a guide and a model What are Good Indicators? for developing an indicator-based assessment of A good indicator has several characteristics: smaller communities and cities, providing valuable comparative data at the county, subregional, regional, • It addresses the fundamental part of long-term and state levels. The indicators do not present regional or community well-being. the entire picture, but they are often surrogates • It is clear and understandable. for clusters of issues and behaviors. In numerous • It can be tracked, is statistically measured at cases, additional information is available on the Great regular intervals, and comes from a reliable Valley Center website or those of the sources cited source. in the report. • It is easy to communicate in concept as well as in terms of its value and importance to the region. The computer icon indicates that • It measures an outcome rather than an input. more information can be found online at www.greatvalley.org/indicators.
About this Report: Each year, the Great Valley Center produces a report in the five-part State of the Great Central Valley series. The data is updated in five-year increments. This is a follow-up of the economic report that was first released in 1999. The 2000 report featured indicators depicting the state of the Valley’s environment; the 2001 report focused on community well-being by taking a look at social capital; and in 2002, the emphasis was on public health and access to care in the region. The 2003 report assessed youth preparedness and education. All reports in the series and an online searchable database of indicators from each report are available at www.greatvalley.org/indicators.
2 R ECOMMENDATIONS
The Great Central Valley has substantial economic resources, particularly in its strong agricultural industry. However, it also faces major economic challenges including low per capita incomes, high unemployment, rapid growth, and global competition. Some strategies to address these challenges include:
1 Maintain Agriculture as a Core Industry The agricultural industry provides twenty percent of Central Valley jobs and generates billions of dollars in revenue. With Valley-wide unemployment consistently well above the state average, the region cannot absorb the loss of jobs and further pressure on already low wages that would occur should agriculture disappear. Other reasons to maintain agriculture in the Central Valley include its key role in providing food for the United States, its importance to the state and national economies and the balance of trade, and its environmental, historical, and cultural values. 2 Continue to Diversify the Economy The Valley is becoming more diverse economically. While government is the largest employer, most of the remaining jobs are in low-wage industries. The Central Valley’s natural resources provide competitive advantages in promising new industries such as renewable energy. The large agricultural base provides the potential for creating new, higher-paying jobs in emerging industries such as pharmaceuticals and specialized crops. 3 Improve Educational Attainment High-wage jobs usually require a more highly-educated workforce. The Central Valley will benefit from raising educational performance of students at all levels, from elementary schools through high schools, community colleges, vocational programs, and four-year universities including the region’s five California State University and two University of California campuses. 4 Provide A Range of Housing Types While the Central Valley is producing substantial numbers of new homes, the lack of affordable rental housing creates stress for many residents and is likely to become worse as rapid population growth continues. Increasing the supply of rental housing may relieve this stress and help workers live closer to jobs. 5 Address the Emerging Transportation Challenges With rapid population growth and with commute patterns mirroring those elsewhere in the state, the Valley’s metropolitan communities are beginning to face substantial congestion. Traffic congestion in the Valley will exacerbate already-severe air pollution problems and thus limit economic growth. The Valley should consider transportation needs and air pollution impacts in its economic decisions. 6 Seek Parity From Public and Private Funders The physical and human needs of the region require resources. The Central Valley should demand greater parity of funding to address the disparity that exists between the region and the rest of the state and nation.
3 THE GREAT CENTRAL VALLEY OF CALIFORNIA
California's Great Central Valley is a vast region—some 450 To give context to Valley data, statewide and miles long, averaging 50 miles wide. Stretching from Mt. regional data are presented for: Shasta in the north to the Tehachapis in the south, the Valley • California encompasses 19 counties. For brevity, "the Valley" will be used to (58 counties, including the 19 Valley refer to the 19-county region. counties); • San Francisco Bay Area Because different parts of (9 counties—Alameda, the Valley have different Contra Costa, Marin, Napa, characteristics, the region San Francisco, San Mateo, has been divided into the Santa Clara, Solano, and following subregions: Sonoma); • North Valley • Los Angeles Region (5 counties—Butte, (5 counties—Los Angeles, Colusa, Glenn, Shasta, Orange, Riverside, San and Tehama); Bernardino, and Ventura). • Sacramento Metropolitan Region (6 counties—El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba);
• North San Joaquin Valley (3 counties—Merced, San Joaquin, and Stanislaus); • South San Joaquin Valley (5 counties—Fresno, Kern, Kings, Madera, Tulare).
Occasionally, the North and South San Joaquin Valleys have been combined into one subregion.
Source: GreenInfo Network
4 T ABLE OF CONTENTS
P OPULATION, INCOME, & HOUSING 7
P OPULATION GROWTH 8
P ER CAPITA INCOME 10
R ESIDENTIAL BUILDING PERMITS 12
H OUSING AFFORDABILITY 13
RENTAL AFFORDABILITY 14
B USINESS VITALITY 15
J OB GROWTH AND LABOR FORCE GROWTH 16
A NNUAL UNEMPLOYMENT RATE 17
U NEMPLOYMENT RATE BY MONTH 18
WAGES BY INDUSTRY 19
EMPLOYMENT BY INDUSTRY 20
EMPLOYMENT CHANGES BY INDUSTRY 22
RETAIL SALES 23
INTERNET PRESENCE 24
TOURISM 25
A GRICULTURE 26
F ARM EMPLOYMENT AND WAGES 27
V ALUE OF AGRICULTURAL PRODUCTION 28
A GRICULTURAL OUTPUT RANKING 30
A GRICULTURAL LAND CONVERSION 32
T RANSPORTATION, COMMERCE, & MOBILITY 34
V EHICLE MILES TRAVELED AND PRIMARY MODE OF TRANSPORTATION TO WORK 35
V EHICLE HOURS OF DELAY 36
AIRPORT TRAFFIC 37
F REIGHT TRAFFIC 38
F EDERAL & NONPROFIT SPENDING 40
P ER CAPITA FEDERAL SPENDING 41
PER CAPITA REVENUE BY NONPROFIT ORGANIZATIONS 42
D EFINITIONS 43
D ATA SOURCES 45
5
P OPULATION, INCOME, & HOUSING
The Valley's rapidly-growing population is a primary factor driving the regional economy. Most of the growth is from migration, largely from
California's coastal regions. Photo by Jason Bailey Jason by Photo
• The population of the Central Valley is expected to grow 24% between 2000 and 2010, making it the fastest growing region in California. Growth is projected to be particularly rapid in the North San Joaquin Valley (29%) and in the Sacramento Metropolitan Region (27%).
• Per capita income in the Central Valley is 26% lower than the state average and falling further behind. If the Central Valley were a state, it would rank 48th in per capita income.
• Residential construction has been a major force in the Central Valley economy, with the number of housing permits increasing faster than the population.
• While housing remains affordable to some Central Valley residents, affordability is decreasing in 15 of the 19 Central Valley counties.
• Rental housing is becoming considerably more expensive, and nearly 50% of Central Valley residents cannot afford a median-priced two-bedroom rental unit in their own communities.
Central Valley Subregions North Valley (Five counties–Butte, Colusa, Glenn, Shasta, and Tehama) Sacramento Metropolitan Region (Six counties–El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba) North San Joaquin Valley (Three counties–Merced, San Joaquin, and Stanislaus) South San Joaquin Valley (Five counties–Fresno, Kern, Kings, Madera, and Tulare)
7 POPULATION, INCOME
& HOUSING POPULATION GROWTH Why isitimportant? Definition: rapidly. The populationoftheCentralValley isgrowing .ORTH 6ALLEY business opportunity to expand production capacity. toexpandproduction business opportunity laborpoolandmaybea theaggregate increases inthenumberofavailableworkers Growth andmedicalcare. protection, policeandfire including educationalservices, ofpublicgoodsandservices, economy anddelivery impactsmanyaspectsofthe Population growth time. of peopleaddedtoapopulationoverperiod isthenumberorpercentage Population growth !CTUAL 0ERCENTAGE #HANGE FROM TO 0REDICTED 0ERCENTA #ALIFORNIA
0OPULATION 'ROWTH IN THE #ENTRAL 6ALLEY 3UBREGIONS
-ETROPLITAN 2EGION
3ACRAMENTO !CTUAL 0ERCENTAGE #HANGE FROM TO 6ALLEY #ENTRAL 3AN *OAQUIN 6ALLEY ORE AIONA$PRMN F&INANCE OF $EPARTMENT #ALIFORNIA 3OURCE .ORTH
GE #HANGE FROM TO "AY !REA 3AN &RANCISCO 0OPULATION 'ROWTH IN #ALIFORNIA AND ITS 2EGIONS 3AN *OAQUIN 6ALLEY
3OUTH 2EGION ,OS !NGELES
8 How arewedoing? current residents. current to births ismostlyfrom populationgrowth where and leastsignificantintheSouthSanJoaquinValley, ValleyMigration ismostsignificantintheNorth inCalifornia. coastalregions of themigrationisfrom migration.Sixtypercent isfrom population growth thanhalf(58%) of theCentralValley’sMore SanJoaquinValley. fast29%in the North extremely Valley 14%intheNorth from by subregion, toan ratesintheCentralValley growth Projected vary schools,andotherpublicservices. traffic, on substantialpressure rateof24%creates growth at11%.A each andtheSanFranciscoBayArea faster thanthestateandLosAngelesRegionat15% by another24%between2000-2010,substantially The CentralValley togrow populationispredicted 12%. than17%,whilethestate’spopulationgrew more Thepopulationofthe19countiesgrew region. Valley fasterthaninanyotherCalifornia increased 1990-1999,thepopulationinCentral From workers competeforjobs. inlowerwagesasmore injobs,mayresult increase Conversely,services. withoutan alarger workforce, toexpandsalesand businessesopportunities offering alsoboosttheconsumerbase, Population increases 0ROJECTED 0ERCENTAGE #HANGE FROM TO 3OURCE #ALIFORNIA $EPARTMENT OF &INANCE
forcounty. each closely reflect actual values are grouped in ranges to most Data presented on this map Glenn Tehama Colusa Shasta Yolo POPULATION CHANGE,1990–2010 Sutter Butte San Joaquin Sacramento Yuba Stanislaus Merced El Dorado Placer Madera Source: CA Department of Finance 050100 Kings Fresno 5Miles 25 9 Tulare Kern Population Ch Projected change,2000-2010 Actual change,1990-1999 from 1990to2010 byCounty Percent Change CA change was 14% is 32% CA change ange from1990-1999 in Total Population 18% - 31% 70% 45% - 58% 32% - 44% 100% Greater than 25% 25% 15% - 21% Less14% Than ±
POPULATION, INCOME & HOUSING POPULATION, INCOME & HOUSING #ALIFORNIA Definition: lowest inthecountry. Per capitaincomeintheCentralValley isamongthe Why isitimportant? PER CAPITAINCOME incomes are higher and half are lower. higherandhalfare incomes are as medianincome,whichisthelevelathalf people livinginthatcommunity. Itisnotthesame community anddividingitbythetotalnumberof calculated bytakingthetotaldollarsofincomeina individual inacommunityorjurisdiction.Itis Per capitaincomeistheaverageannualper income areas oftenhavealowercostofliving. income areas economic indicatorcanbemisleadingaslower However, usingpercapitaincomealoneasan economic health. indicatorofaregion’s is oftenusedasanapproximate Percapitaincome opportunities. and entertainment educational,recreational, income tendtohavemore ofliving.Regionswithahigherpercapita standard Per capitaincomeisamajorfactorincommunity’s 0ER #APITA )NCOME IN #ALIFORNIA AND ITS 2EGIONS 3OURCE 53 $EPARTMENT OF #OMMERCE "UREAU OF %CONOMIC !NALYSIS 6ALLEY #ENTRAL "AY !REA 3AN &RANCISCO 2EGION ,OS !NGELES 10 How arewedoing? Valley. locatedintheCentral lowest percapitaincomewere withthe In 2002,7ofthe10countiesinCalifornia South SanJoaquinValley. Regionandlowestinthe Sacramento Metropolitan Itishighestinthe varies considerablybyregion. percapitaincomeintheCentralValleyAverage tootherareas. relative income decreased by19%.Thus, CentralValleyincreased percapita by25%,whiletheCentralValley’sincome increased percapita as awhole.Duringthattime,California’s Central Valley consistentlylaggedbehindCalifornia 1997to2002,thepercapitaincomein From above West Arkansas,andMississippi. Virginia, aseparatestate, nation inpercapitaincomeifitwere rank 48thoutofwhatwouldbe51statesinthe To putthisinperspective,theCentralValley would $24,550, 26%belowthestateaverageof$32,989. Per capitaincomefor2002intheCentralValley was 6ALLEY .ORTH 0ER #APITA )NCOME IN THE #ENTRAL 6ALLEY 3UBREGIONS 3OURCE 3OURCE 53 $EPARTMENT OF #OMMERCE "UREAU OF %CONOMIC ! -ETROPOLITAN 2EGION 3ACRAMENTO *OAQUIN 6ALLEY .ORTH 3AN *OAQUIN 6ALLEY 3OUTH 3AN NALYSIS forcounty. each closely reflect actual values are grouped in ranges to most Data presentedonthis map Glenn Tehama PER CAPITAINCOMEBYCOUNTY,2002 Colusa Shasta Yolo Sutter Butte San Joaquin Sacramento Yuba Stanislaus El Dorado Merced Placer 050100 Source: U.S. Department ofCommerce Source: U.S.Department Kings Madera Fresno 5Miles 25 11 Tulare Kern Per CapitaIncomebyCounty $32,989 was Income CA PerCapita $36,000 - $37,500 $29,500 - $30,000 $25,500 - $27,500 $22,500 - $24,500 $20,500 - $21,500 $18,500 - $20,000 ±
POPULATION, INCOME & HOUSING POPULATION, INCOME & HOUSING RESIDENTIAL BUILDINGPERMITS Why isitimportant? Definition: single-familyhomes. housing, particularly The CentralValley israpidlyincreasing itssupplyof structures. whodesignthe deliver materials,andarchitects companiesthat trucking purchased, supplies are building where includingstores for construction, go tobusinessesthatsupplythematerialsneeded benefits including laborandmaterialscosts.Indirect ofanewhome, associated withtheconstruction thosedirectly benefitsare Direct the construction. associatedwith andindirectly for thosebothdirectly generateseconomicbenefits Housing construction employment.) related topage20fordetailsonconstruction- (Please refer issteadygrowth. to economichealthwhenthere isasignificantcontributor Construction term. typicallyseasonalandshort- jobsare construction jobs,although alsocreates Housing construction toanarea. and mayattractadditionalresidents population forarapidlygrowing housing isnecessary ofnewhousingunits.New accurate predictor an housingare forresidential Building permits condominiums, andapartments. includinghouses, construction, new residential for buildingpermits This indicatormeasures #ALIFORNIA 2ESIDENTIAL "UILDING 0ERMITS )SSUED IN #ALIFORNIA AND ITS 2EGIO 6ALLEY #ENTRAL 3OURCE 53 $EPARTMENT OF (OUSING AND 5RBAN $EVELOPMENT "AY !REA 3AN &RANCISCO NS 2EGION ,OS !NGELES 12 How arewedoing? economic valueintheCentralValley. andindirect $15billion indirect approximately generated In 2003,housingconstruction despiteapopulation thatwas13%smaller.Bay Area unitsthantheSanFrancisco 113%more produced Region. Forexample,in2003theCentralValley and fewerthantheLosAngeles Francisco BayArea housingunitsthan thenine-countySan more In absolutenumbers,theCentralValley isbuilding intheCentralValley.other subregions Regionthan intheSacramentoMetropolitan permits ofmulti-family isaslightlyhigher percentage There forcondominiumsandapartments. the remainder forhouses,with are 85%ofpermits Approximately growing. atafasterratethanthepopulation is increasing are a slump.Onyear-to-year basis,housingpermits wasin number in1996,whenthehousingindustry Valley. In2003,theyexceeded58,000—doublethe yearintheCentral every haveincreased permits 1989to1996,newbuilding substantial declinefrom inthe CentralValley force primary economy. Aftera hasbeena construction Since 1996,residential Why isitimportant? Definition: than elsewhere inCalifornia. Houses intheCentralValley remain more affordable HOUSING AFFORDABILITY !FFORDABILITY )NDEX "upward mobility.""upward canpromote ofproperty In addition,appreciation intheircommunity. vestedinterest have along-term thatresidents make. Homeownershiphelpsensure usually thelargest financialdecision ahouseholdwill Home ownershipisagoalofmanypeople.It costsofcommuting. financial andenvironmental insurance, utilities,suchasairconditioning,andthe home prices.Otherfactorsincludethecostsoftaxes, The fullcostofhousingchoicesisnotlimitedto priced home. amedian- topurchase 95% oftheincomenecessary 95, itmeansthatthemedian-incomehouseholdhas index of For example,ifacountyhasanaffordability ahomeatthemedianprice. topurchase sufficient less than100meansthatthemedianincomeisnot amedian-pricedhome,andmeasure to purchase thanrequired means thatthemedianincomeismore higherthan100 Ameasure home inthatarea. amedian-priced topurchase income issufficient median of100meansthatthearea's A measure and assumesa20%downpayment. taxesandinsurance, rates,property income, interest of ahouseinthatcounty. Itaccountsforprice, household incomeinacountywiththemedianprice themedian compares Housing affordability
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9OLO the San Francisco Bay Area orLosAngelesRegions. the SanFranciscoBayArea in theCentralValley butworkforhigher wagesin babyboomers),andcommuterswholive wealth from families(especiallythetransferof assistance from pay lessthan20%foradownpayment,financial forfirst-time homebuyerswhocanoften programs rising homeprices.Theseincludeincentive contributing tohighhomeownershipratesdespite rates severalfactorsbesidelowinterest are There 57%. home ownershipratesabovethestateaverageof slightly. In2003,fifteenValley countieshad of homeownersintheValley isincreasing inaffordability,Despite thedrop thepercentage andMadera). Fresno, below 100since2002(ElDorado,Yolo, Merced, Five CentralValley countieshaveseentheir indexfall Glenn, Tehama, in15. andKings)decreased infourcounties(Colusa, hasincreased affordability in 11ofthe19Valley counties.Since2002, tomedianincomefamilies Housing isaffordable oftheirincomeonhousing. proportion greater theirjobsorspenda from they maymovefurther pricedoutoftheirlocalhousingmarket, people are income andthepriceavailabilityofhouses.As bythebuyer’s The abilitytoownahomeisaffected
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POPULATION, INCOME & HOUSING POPULATION, INCOME & HOUSING RENTAL AFFORDABILITY Why isitimportant? Definition: a medianpricedtwo-bedroomunit. Nearly 50%ofCentralValley residents cannotafford "UTTE further from employmentcenters. from further seeklessexpensivehousing commutes ifresidents inlonger mayresult Theserents higher rents. Employmentcentersoftenhave goods andservices. education,andother childcare, transportation, leavinglessmoney forfood,healthcare, on rent, oftheirincome or topayahigherproportion rents todouble-upandshare theseresidents requires housing tobuyahome.Alackofaffordable afford housingor who cannot who choosetoliveinrental housingisessentialforresidents rental Affordable income. gross than30%ofarenter’s nomore requires ifit affordable unit.Aunitisconsidered rental amedianpriced torent population thatcanafford ofthe thepercentage measures Rental affordability
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How arewedoing? Central Valley 24%. unitsincreased fortwo-bedroom unit. bedroom amedian-pricedtwo- unabletoafford are residents 50%ofValleythan thestateaverage,approximately intheCentralValleyAlthough rents lower are 4WO "EDROOM 5NIT IN THE #ENTRAL 6ALLEY #ALIFORNIA -ERCED 2ENT FOR A 4WO "EDROOM 5NIT IN #ALIFORNIA AND ITS 2EGIONS 3AN *OAQUIN
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B USINESS VITALITY
While agriculture remains a significant part of the Central Valley's economy, service industries are becoming increasingly important. This is a difficult transition because some service
industries, such as rapidly-growing retail Photo by Logan Perkes Logan by Photo sales, historically pay low wages and may be seasonal. Unemployment in the Valley remains considerably higher than the state average.
• The labor force is growing faster than jobs are being created.
• From 1998–2003, the Central Valley’s unemployment rate averaged 4.2% higher than the state rate. This is a slight improvement from the prior five years, when the Central Valley rate was 4.8% higher.
• Wages in the Central Valley are lower than elsewhere in California.
• As of 2003, 77% of Central Valley jobs were in service-providing industries, especially government and trade, transportation, and utilities. The state average for service industries was 82%. Goods-producing industries, including construction and manufacturing, provided 14% of Central Valley jobs, while farming provided the remaining 9%.
• From 1994 through 2003, the Central Valley lost nearly 10,000 agriculture-related jobs, or 5% of the 1994 total.
• Construction has been the fastest growing industry since 1994.
• Tourism has grown substantially since the early 1990s, particularly in the Sacramento Metropolitan Region, and has generated jobs.
Central Valley Subregions North Valley (Five counties–Butte, Colusa, Glenn, Shasta, and Tehama) Sacramento Metropolitan Region (Six counties–El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba) North San Joaquin Valley (Three counties–Merced, San Joaquin, and Stanislaus) South San Joaquin Valley (Five counties–Fresno, Kern, Kings, Madera, and Tulare)
15 BUSINESS VITALITY #ALIFORNIA JOB GROWTHANDLABORFORCE Why isitimportant? Definition: of jobs. The laborforce is growingfasterthanthenumber *OB 'ROWTH IN #ALIFORNIA AND ITS 2EGIONS "ENCHMARK jobs outside of their home regions, or relocate. orrelocate. jobs outsideoftheirhomeregions, maycommuteto be unemployed,underemployed, Ifthisdoesnotoccur, will opportunities. residents adequateemployment toprovide of thelaborforce economy, willkeeppacewiththegrowth job growth wagesandbenefits.Inahealthy income through of source theprimary For mostpeople,jobsare unemployed. time. Itincludesbothpeoplewithjobsandthe overaperiodof inanarea civilian laborforce thechangein measures growth - Laborforce jobs inacountyoverperiodoftime. thechangeinnumberof measures - Jobgrowth indicators: related, twodistinct,but are growth Job andlaborforce 3OURCE %MPLOYMENT $EVELOPMENT $EPARTMENT ,ABOR -ARKET )NFORMA
6ALLEY #ENTRAL "AY !REA 3AN &RANCISCO TION $IVISION 2EGION ,OS !NGELES 16 How arewedoing? Francisco Bay Area andLosAngelesRegions. Francisco BayArea Valley commutingtojobsintheSan are residents 6.5%.ThisislikelybecausemanynewCentral grew Valley, 7.9%whilejobs grew thelaborforce where wasintheSouthSanJoaquin significant difference faster(11.1%)thanjobs(10.5%).Themost grew 1998to2003,theCentralValley’sFrom laborforce 6ALLEY .ORTH *OB 'ROWTH IN THE #ENTRAL 6ALLEY 3UBREGIONS "ENCHMARK 3OURCE %MPLOYMENT $EVELOPMENT $EPARTMENT ,ABOR -ARKET )NFORMA -ETROPOLITAN 2EGION 3ACRAMENTO *OAQUIN 6ALLEY .ORTH 3AN TION $IVISION *OAQUIN 6ALLEY 3OUTH 3AN ANNUALUNEMPLOYMENTRATE How arewedoing? Why isitimportant? Definition: higher thanthestateaverage. Central Valley unemploymentremains substantially Valley. intheCentral the highestunemploymentratesare intheU.S.with areas Six ofthetenmetropolitan overall wages. competition forexistingjobsandleadtolower ingreater High unemploymentalsocanresult ofliving. to maintainaminimalstandard unemployment insuranceforalimitedtime receive difficulty. unemployedfrequently Peoplewhoare Unemployed workersoftenfaceseriousfinancial jobsavailable. are seeking workthanthere workers more are unemployment meansthatthere High theeconomic healthofaregion. measure The unemploymentrateisoneofthebestwaysto wages. seeking employment,orthosewithunreported self-employed,nolonger rate excludesthosewhoare actively seekingemployment.Theunemployment workinglessthanfulltimeandwho are or are notworking the workers16andolderwhoare of thepercentage The unemploymentratemeasures #ALIFORNIA ORE MLYET$VLPET$PRMN ,BR-RE NOMTO $I )NFORMATION -ARKET ,ABOR $EPARTMENT $EVELOPMENT %MPLOYMENT 3OURCE 5NEMPLOYMENT 2ATE IN #ALIFORNIA AND ITS 2EGIONS 6ALLEY #ENTRAL "AY !REA 3AN &RANCISCO 2EGION ,OS !NGELE VISION 17 S
(6.7–8.1%). Region and lowestintheSacramentoMetropolitan highest intheSouthSanJoaquinValley (13–14%), average. IntheCentralValley, consistently theyare Central Valley consistentlyhigherthanthestate are ofthe Unemployment ratesinallthesubregions higher thanthestaterate. points averaged 10%,whichwas4.2percentage 1999–2003, theCentralValley unemploymentrate pointshigherthanthestaterate.From percentage unemployment rateaveraged11.9%,whichwas4.8 1994to1998,theCentralValley’sFrom slightlysince1998. hasdecreased difference the ofCalifornia, substantially higherthantherest While unemploymentintheCentralValley remains . BonvleHrignSnBnt,T 11.0 Rate 23.5 13.6 Source: USDepartmentof Labor, Bureau of LaborStatistics 10. Brownsville-Harlingen-SanTX Benito, 9. 8. 7. McAllen-Edinburg-Mission,TX 6. 5. Yakima, 4. 3. 2. WA Yuma,AZ 1. MSA 10.6 Statistical Areas intheUnited States Highest AnnualUnemployment Ratesfor Metropolitan Modesto, 15.5 Bakersfield, CA Yuba Fresno, CA Merced, 11.5 City,Visalia-Tulare-Porterville, CA CA 12.3 CA 14.0 CA 14.8 13.8 6ALLEY .ORTH 3OURCE %MPLOYMWNT $EVELOPMENT $EPARTMENT ,ABOR -ARKET )NFORMA 5NEMPLOYMENT 2ATE IN THE #ENTRAL 6ALLEY 3UBREGIONS -ETROPOLITAN 2EGION 3ACRAMENTO 2003 *OAQUIN 6ALLEY .ORTH 3AN TION $IVISION *OAQUIN 6ALLEY 3OUTH 3AN
BUSINESS VITALITY BUSINESS VITALITY *ANUARY 5NEMPLOYMENT 2ATE BY -ONTH IN THE #ENTRAL 6ALLEY AND ITS 3UBREG Why isitimportant? Definition: Unemployment intheCentralValley variesbyseason. UNEMPLOYMENT RATEBYMONTH #ALIFORNIA agriculture affects unemployment. affects agriculture anindicationofhow seasonsprovides harvesting Comparing themonthlyratewithprimary unemployment variesoverthecourseofayear. Tracking unemploymentbymonthshowshow by value. the CentralValley’s tenlargest agriculturalproducts, seasonsfor unemployment ratewiththeharvesting the rate withinoneyear(2003).Italsocompares themonthlyunemployment This indicatormeasures &EBRUARY -ARCH 6ALLEY .ORTH !PRIL -ETROPOLITAN 2EGION 3ACRAMENTO -AY 3OURCE 3UMMARY OF #OUNTY !GRICULTURAL #OMMISSIONERgS2EPORTS *OAQUIN 6ALLEY .ORTH 3AN IONS #OMPARED WITH (ARVEST 3EASONS FOR THE 4OP 4EN #OMMODITIES *UNE *ULY 18 *OAQUIN 6ALLEY 3OUTH 3AN #ALIFORNIA %MPLOYMENT $EVELOPMENT $EPARTMENT ,ABOR -ARKET )NFO How arewedoing? unemployment. months, suggestingthatotherfactorsinfluence ofthestate,evenduringsummer the rest Valley's significantlyhigher(4.2%)than ratesare seasonally,However, whiletheratesvary the andconstruction. including agriculture seasonal factorsformajorCentralValley industries, to related in unemploymentduringtheyearare suggestthatvariations typically slows.Thesetrends isoverandwhenconstruction for somemajorcrops season rapidly inthefallandwinter, whenharvesting activity. farm to increased Unemploymentincreases inthesummer,It alsodecreases whichappearsdue hiringforconstruction. This maybeduetoincreased inthespring. by season.Unemploymentdecreases The unemploymentrateintheCentralValley varies !UGUST 3EPTEMBER .ATIONAL !GRICULTURE 3TATISTICS 3ERVICE /CTOBER IN THE #ENTRAL 6ALLEY .OVEMBER RMATION $IVISION $ECEMBER #HICKENS 7ALNUTS /RANGES 2ICE 4OMATOES #OTTON !LMONDS #ATTLE #ALVES 'RAPES -ILK
WAGES BYINDUSTRY Why isitimportant? Definition: average. Wages intheCentralValley are lowerthanthestate those with higher wages living in high-cost areas. those withhigherwageslivinginhigh-costareas. incomethan discretionary actually endupwithmore paid lowerwageswholiveinlower-cost may areas thespendingpower ofhigherwages.Those reduce Valley, can andahighercostoflivinginsomeareas However, thecostoflivingvarieswithinCentral clothing. other thanbasicexpensessuchasfood,shelter, and moneytospendongoodsandservices discretionary of life.Peoplepaidhigherwagesusuallyhavemore influencesquality greatly The levelofwagesearned industries. in different and areas annuallybyemployeesindifferent earned theaveragedollaramount This indicatormeasures .ATURAL 2ESOURCES
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