Since hitting its peak in March 2001, payroll employment dropped 11.5% in San Francisco and 17.8% in San Jose, compared to previous estimates of 10.7% and 16.2%, respectively. The impact of these job losses fell upon many Alameda and Contra Costa County residents, as the East Bay is home to over one-third of the Bay Area’s workforce.
EAST BAY SECTOR EMPLOYMENT , Seasonally Adjusted
The Manufacturing sector continued to cut jobs in June and July, losing more than 20,000 jobs in all since the beginning of 2001. Most of the job losses were related to industrial machinery, computers, and transportation equipment. The Financial Service Sector reported job gains, reflecting the positive effect of an active housing market and widespread refinancing activities. The largest employer in the region, the East Bay Government sector reported slight employment gains this month because of the Alameda County Fair and summer recreational programs. However, statewide government employment showed the largest negative change over the month with a 9,600 seasonally adjusted job losses. The State budgetary crisis is likely to exacerbate future employment losses in this sector in the coming months and years.
For more industry specific employment data, please click here.
Despite an overall increase in California housing prices since June 2003, housing affordability in the East Bay improved compared to the same period a year ago and, except for Contra Costa county, remained unchanged from last month. Contra Costa improved one percentage point from 11% last month, meaning 12% of the median households in California can now afford a median-priced home in the county. California in general, however, is less affordable this month compared to the same period last year. The California Association of Realtors reported that the minimum household income needed to purchase a $376,260 median-priced California home in June was $84,980, based on a typical 30-year, fixed-rate mortgage at 5.62 percent and assuming a 20 percent down payment. That same home sold for $324,640 in June 2002 and required an annual household income of $81,510.
The median number of days (statewide) it took for a single-family home to sell in June 2003 was 28, and the unsold inventory index (an indication of how long it would take to deplete the stock of available homes if selling were to continue at the current rate) was 2.3 months. Thirty-year fixed mortgage rates averaged 5.23%, down from 6.65% in June 2003, the lowest level in thirty years. Homes cost 15.9% more than in June 2002, with sales up 7.2% in the same period of time.
For more information on the housing market, click here.
The hotel industry has been on a steady decline since the end of 2001. Continuing this trend, June 2003 saw a significant drop in daily room rates from last year, with San Francisco down 15.9% to $135.23, San Jose down 15.5% to $106.55, and the East Bay also down 15.5% to $93.21. The rest of Northern California dropped 23% to an average of $81.74. Despite the decrease in price, occupancy percent in San Francisco and San Jose did not change much compared to the same time last year, while the East Bay saw an 8.9% fall and the rest of Northern California a 2.1% fall.
In June, Oakland permitted $1 million in new stores, and Livermore $1.2 million. Livermore also permitted $4.2 in new office buildings and $6.8 industrial buildings, while Dublin permitted $1.5 in new office buildings. In total, the County of Alameda permitted $14.1 million in new industrial buildings, with $6.8 million in Livermore, $2.8 million in Fremont, $2.3 million in San Leandro, and $1.4 million in Hayward.
Continuing the first quarter trend, the permitting of new housing in the East Bay has primarily taken place in Contra Costa County, with a strong contribution in Alameda county by the City of Oakland in both single and multi-family permitting.
For more information on construction, click here.
Inflation in the Bay Area fell in June, continuing a downward price adjustment trend that began in March 2003. However, the cost of shelter continued to edge up after several months of decline earlier in the year. A decline in energy costs in April and May contributed substantially to the decline in the CPI. Nationally, the index for all items less energy and food recorded no change in June, and durable goods indicated a decrease for the fourth consecutive month.
