20,000 New Jobs in January

After stumbling in December, California job growth got back on track in January. A total of 20,000 jobs were added to payrolls statewide (compared to December's 10,900), with the bulk coming in the leisure and hospitality sectors, which added 14,800 new positions. Other sectors posting gains were education and health services (+3700), manufacturing (+3200), government (+3200), professional and business services (+1500), financial activities (+1400), other services (+1100) and construction (+500). Trade, Transportation and Utilities lost the most jobs (-5500), followed by information (-2800) and natural resources and mining (-300). The state's rate of unemployment dropped to 5.8 percent, down from 6 percent in January. One year ago, the rate was 6.5 percent. Nationwide, the jobless rate was 5.2 percent.

Small Business Operators Optimistic

According to a recent survey by Union Bank, nearly 71 percent of small business owners in California believe 2005 will be a better year than last. In more good news for jobseekers, a total of 36 percent said they plan to expand staffs, while less than 3 percent anticipate layoffs. "Business is going to be nothing but improving," Dan Gerling, owner of Express Type & Graphics in Galt, told The Sacramento Bee. Some employers raised concerns about workers' comp costs, the state economy, and rising healthcare costs - which can all be a barrier to small operations adding staff. For most of the small-business sector, though, optimism is in the air.

Sole Proprietors Boom

California led the nation in 2002 with the greatest number of single-person businesses, according to a recent Census Bureau report. The state had 2.52 million non-employer businesses in '02, the most current year tabulated so far. The SF Bay Area alone hosted 487,000 such businesses. If the Bay Area had been a state, it would have ranked 12th, just behind North Carolina. While the trend was hailed by some as a sign of a healthy entrepreneurial economy, others said the numbers also reflected a weak labor market that forced some of the unemployed to create businesses because they could not find work. More recent data from the Small Business Administration suggest that the number of non-employer firms started to level out in 2003 and 2004 as the labor market began to recover. "Some people who may have been temporarily self-employed may have gone back to salaried employment to get health benefits," suggests Bruce Phillips, senior economist for the National Federation of Independent Businesses.

Another Unemployment Benefit

Although it may not feel like it, unemployment may be good for your health. According to a study by the National Bureau of Economic Research, a one-point rise in unemployment coincides with lower fatalities from heart disease and other ailments. Researchers theorize that people who get laid off have more time for healthy habits like exercising and eating right.

On the Job Front

SACRAMENTO - WyoTech, a national auto-mechanic training center plans to add a third building to its West Sacramento campus, expanding its capacity by about 50 percent. DeVry Institute, a rival business and technical school, has proposed a $2.5-million higher education facility in West Sacramento . . . The capital city is now the fifth most-popular US destination for those relocating, according to U-Haul International's vehicle rental records. Other popular spots in 2004, ranked in ascending order, were: Houston, Los Angeles, Orlando and Chicago.

New Perk - ID Protection

It's a disquieting sign of the times. AIG Insurance reports that more and more companies are offering to provide employees with identity theft insurance. Not only does it make sense to the employee, it's also of value to employers, since a consumer whose ID has been stolen will spend on average about 200 hours (much during company time) untangling the mess. "The victim of identity theft is left with a tremendous burden of cleaning up the problem, and the employer becomes an indirect victim," notes Nancy Callahan, vice president of AIG's Affinity Group Services. Given all the press that identity theft has received, the benefit is quite popular with employees and costs only a few dollars a year. Critics, however, say the money would be better spent on other employee needs.

Exit Interviews Go Online

The exit interview, a time-honored tradition, is undergoing some dramatic change. Until now, a company executive sat down with departing employees to quiz them on the reasons for their departure. The face-to-face nature of the interview, however, often inhibited the exiting worker. Enter the age of the Internet and a new product called WebExit, which allows employees to answer questions online. The results? Workers can give more thought to their answers and are more willing to be candid about their reasons for leaving. One particularly blunt bank worker criticized the company for mimicking retail hours. "In terms of convenience, robbers found it convenient to rob the bank during our extended hours," complained the discontented departee.