LOS ANGELES—The most recent report from the state Employment Development Department, released at the end of March, showed that California added 4,000 jobs to its non-farm employment base in February, after adding 1,500 positions in January. The numbers, says economist Christopher Thornberg of Beacon Economics here, show that the state's employment recovery is on pace, albeit a slow one.
Still, it's a positive sign since the labor force expanded by 5,200 and the number of unemployed Californians declined by almost 7,000, explains Thornberg. Although the unemployment rate remained steady, the underlying drivers of the unemployment rate calculation all show signs of improvement, he says.
Several job sectors across the state posted healthy gains in February. Manufacturing in particular stood out, adding 6,200 positions over the month. The information industry, which encompasses software, publishing and entertainment, increased its payrolls by 9,300. The professional and business services sector also posted a gain of 2,800 workers, driven entirely by increases in the administrative segment of that sector. And the less cyclical industries of education and healthcare combined to create 6,100 new jobs in February as well.
Sayres Dudley, president of executive search firm Dudley & Associates, tells Real Estate Forum that employment in the commercial real estate industry, which was hit particularly hard during the recession, is starting to turn around nationally. The areas showing the best potential for growth in 2012, he says, are debt/equity finance, all aspects of multifamily, senior positions in brokerage and industrial. "California was impacted at a deeper level than the national average, and as such, is recovering more slowly—but it is recovering," he says.
Many REITs and some private equity firms are sitting on huge cash positions and are looking to invest in the coastal markets of California, adds Dudley. "This should create some acquisitions and asset management opportunities," he says. "As the overhang of single-family foreclosures dissipates, multifamily properties are the beneficiary, and this is now driving demand for more units, which increases development and construction management jobs in that sector."
Dudley's prediction—in keeping with a recent GlobeSt.com article on the subject— is that consolidation among brokerage firms will continue, with some senior teams moving to what they consider stronger and more stable platforms. "This has opened up opportunities for more brokers," he says. (For more on this, see the "Leadership Best Practices" feature in next month's issue.)
Overall, though still sluggish, real estate employment will increase in 2012, and should be even better in 2013, Dudley predicts.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
