Lake County’s unemployment rate dropped to 7.1 percent in April, according to preliminary figures from the California Employment Development Department — down from 8.3 percent in February and matching the lowest rate in 15 years. The figure confirms a rapid decline in unemployment from the height in 2010-2011, when the figure hovered over 15 percent.
“I’m still analyzing what all the data means, but it’s encouraging,” said Jack Long, Lake County Economic Development Director.
Although the county lags behind the statewide April preliminary rate of 6.1 percent, the sharp drop in unemployment mirrors data from neighboring counties. Napa, Sonoma, Mendocino, Glenn and Colusa all reported declining rates — even though unemployment in Colusa County remains at 15.8 percent.
Local officials credit marketing efforts, growing business confidence and a general sense that the recession is continuing its slow ebb. County programs such as destination marketing, a greater emphasis on social media, an active county Chamber of Commerce and effort put in by volunteer organizations focused on strengthening the local economy all contribute to this trend.
“Businesses are feeling more comfortable in hiring,” observed Margaret Silveira, Lakeport’s City Manager. “I think there’s more trust in the economy.”
Indeed, state Employment Development Department projections anticipate a 0.8 percent annual drop in unemployment through 2022, with occupational growth rates of between 0.7 and 2.0 percent in different sectors, including management, social services, legal and conservation. The projected gains are in small but important increments.
“Any move in the right direction helps,” Long said, pointing out that much of the hiring is driven by small business.
“The motels have been full — that’s part of it,” he added. “If we can get something done with Konocti Harbor, that would be big.”
In April of 2001, county unemployment stood at 7.1 percent before beginning a slow climb. The recession hit the area hard, driving rates into double digits from 2008 until well into 2013. Comparing April numbers, the unemployment rate in Lake County stood at 14.7 percent in 2009, 15.5 percent a year later.
Since 2000 the county has had a difficult time absorbing a growing labor force. There were 22,970 potential workers in 2000, a number that grew steadily over the next 15 years. According to the Employment Development Department, 29,990 people make up the current labor force in Lake County.
Businesses continue to close around the area. However, there are several new success stories, including Our Happy Tails in Clearlake — which is expanding to Lakeport — O’Meara Bros. Brewing Company in Lakeport and other small operations, such as Konocti Coffee in Kelseyville and the Dollar General in Lucerne. Construction at the old Sicily’s location adds an encouraging note.
“There is activity and new business coming in,” Silveira said. “I’m feeling very optimistic.”
Nationwide, the unemployment rate is approaching what the Federal Reserve considers normal. In April, U.S. unadjusted unemployment fell to 5.4 percent. The long term tendency, according to the Federal Reserve, is between 5.0 and 5.2 percent.
