DESPITE OVERALL JOB LOSSES, NEW BUSINESSES OPENED
Why Is This Important?
Trends in job gains and losses provide a basic measure of economic health. Shifting employment across industries suggests structural changes in Solano County’s economic composition. Over the course of the business cycle, employment shifts have taken place as entire industries grew and shrank, exposing structural changes in Solano County’s economic composition. Tracking establishments and jobs as firms open and close as they move in and out of a region illustrates current and long-running structural changes.
How Are We Doing?
In 2009, total employment (based on jobs at employers located in the county) in Solano County continued to decline due to the economic downturn. Between 2006 and 2009, employment fell by 8 percent with losses of 9,900 jobs. Most recently, Solano County lost an estimated 5,500 jobs, a 4 percent decline from 2008 to 2009.This loss reset county employment to 2001 levels. In November 2010, Solano County’s monthly employment (based on jobs in the county) fell below levels in November 2000 for the first time. Statewide, employment dropped below 2000 values already in 2008 and remained there. Following November 2007, total employed residents fell to 187,100, roughly the same employment levels seen in 2000 and 2001. Reflecting statewide and regional trends, the unemployment rate slowed significantly between November 2009 and 2010. Nonetheless, 1,000 residents were added to the unemployment rolls over the last year.
Between January 2008 and 2009, 3,400 new establishments were created, and 1,000 business locations closed. On average, between 1995 and 2009, the annual number of establishment openings in Solano County is nearly double the number of closings. Over this period, Solano County gained approximately 2,200 establishments due to businesses opening or moving in, while losing an average of approximately 1,200 establishments due to businesses closing or moving out.The average net change in Solano County establishments - an addition of 990 establishments - is the equivalent to almost 4 percent of total Solano County’s establishments in 2009.
Similar to statewide patterns, business migration into Solano County has exceeded migration out of the county in more years from 1995 to 2009.The majority of establishment movements remain within the state of California. Additionally, 18 percent of establishments moving into the county came from outside of California in 2008 to 2009. This represents an increase from 13 percent between 2007 and 2008.
The number of nonemployers (individuals or partnerships with no employees) has grown 14 percent since 2002, but dropped 5 percent from 2007 to 2008. In the most recent observable year, Manufacturing jumped 5 percent and Health Care & Social Assistance increased 2 percent from 2007 to 2008. From 2002 to 2008 the strongest area of growth was in Administrative, Support, Waste Management & Remediation Services, with a gain of 22 percent. Representing 15 percent each, the largest percentages of nonemployers are in Other Services and Professional, Scientific, & Technical Services.