SACRAMENTO-California's unemployment rate remained stuck at 9.8% in January, but the state's labor market is continuing to improve, according to the latest Beacon Employment Report from Beacon Economics. Recently released data shows a 1,700-position increase in nonfarm payrolls in January over December 2012, reflecting a 0.01% bump. While this bump is rather small, the state's labor force did grow by 32,900 as new job seekers entered or re-entered the market, Beacon reports, but 2,800 were unable to find gainful employment, according to a survey by California's Employment Development Department.

Chris Thornberg, founder of Beacon Economics, told GlobeSt.com during RealShare Los Angeles this week that the stagnation in job growth is more a reflection of unskilled workers than skilled workers, and that the employment outlook for California looks more promising than the numbers seem to reflect. He adds that strength in the hospitality sector, for one, could be a potential bright spot for unskilled or minimally skilled workers here. In fact, the report says that leisure and hospitality added 7,800 new jobs in January, while information and trade, transport and utilities sectors were the main detractors of growth during January.

In addition, the EDD has released new revisions to its 2011-2012 payroll employment data, showing that the California labor market recovery has been stronger than originally estimated, the Beacon report says. Prior to this standard annual revision, 2012 annual growth was 1.7%, but the revised data now shows a 2.1% annual rate of growth for total nonfarm employment in California during 2012.