Ventura County's job market continued to see signs of softening last month, with particularly weak showings in manufacturing and construction.

The unemployment rate edged up to 5.6 percent in May from a revised 5.2 percent in April, the state's Employment Development Department reported Friday. The latest unadjusted figure also exceeds the 4.3 percent rate for May 2007.

A total of 24,200 people were seeking work in May, up 32.2 percent from 18,300 a year ago and 8 percent from 22,400 in April.

While civilian employment increased by 100 to 407,900 last month, the number of out-of-work people jumped 1,800, a result of recent graduations and more people entering the labor force.

"That's interesting, because normally, people don't enter the labor force when jobs are going down," said Bill Watkins, executive director of the UC Santa Barbara Economic Forecast.

One possible explanation is that with inflation and gas prices rising, people are returning to work, Watkins said.

The county fared much better than the state, which posted an unadjusted unemployment rate of 6.5 percent last month — fourth highest among all states behind Michigan, Rhode Island and Alaska.

Slowdown may last another year

California's unemployment rate hasn't been at this level since November 2003, at the tail end of the state's recovery from the economic woes wrought by the end of the tech boom, noted Stephen Levy, senior economist for the Center for Continuing Study of the California Economy.

"There is no question that the state economy is in a slowdown and that the slowdown will probably last for at least another year, continuing the pressure on state and local government budgets into 2009 and 2010," Levy wrote Friday.

About 1.3 million Californians were looking for work in May, up by 115,000 since April and up 300,000 since May last year, the state says. Some 467,300 were laid off, while 107,600 chose to leave their jobs.

Nationwide, the unemployment rate stood at 5.2 percent in May.

In Ventura County, the rise in unemployment is not startling and is "holding steady" in a comfortable range, said Abel Alcocer, an EDD labor market consultant.

In comparison, the county's jobless rate was much higher at 8 percent or 9 percent in the early '90s.

More than the jobs situation, the slumping housing market and skyrocketing gas prices are causing the economic slowdown, Alcocer said.

"All the declines were expected," he said. "We were forewarned that we'd see a jump in unemployment, which we expected to see in construction and manufacturing. But other industries are not falling apart."

A total of 4,300 construction and manufacturing jobs have been cut since May 2007, which comprise 71 percent of the total nonfarm jobs lost over the same span.

The significant decline in manufacturing jobs is not good, especially since they are relatively high-paying jobs, Watkins said.

Skilled workers needed

However, Thousand Oaks Economic Development Manager Gary Wartik doesn't sense there have been significant cutbacks to manufacturing in the Conejo Valley.

"As a matter of fact, some companies are really desperate to hire skilled workers," Wartik said. "That's a good sign, because those who have jobs seem to be secure. That doesn't mean there aren't hiccups."

Meanwhile, the construction industry statewide is in a free fall because of the housing downturn, Watkins said.

"And because of a big overhaul of foreclosures, it's going to be a while before it picks up," Watkins said.

In Ventura County, construction was flat in comparison to April, but down year over year by 2,200 — the biggest annual loss among all sectors.

"The bottom line is the industry is in the worst shape it's been in for decades," said John Frith, vice president of public affairs for the California Building Industry Association. "The market has completely evaporated for new housing in most parts of the state."

The production level in California will be the lowest level since CBIA began keeping records in 1954, Frith said.

Since October, work has slowed for Camarillo contractor Mark Varnum. But in recent weeks, business has picked up, he said.

He expects to be "back in full swing" before long.

Even though the slowdown following the housing boom years has meant less business, Varnum said, he prefers the more competitive market. Customers have more selection and can make smarter choices, and it "weeds out the idiots in this business."

"When it's booming, everyone's a contractor," he said.

Most other industries in the county posted minor gains and losses from month to month. Gains were reported in government, 200 new jobs; leisure and hospitality, 100; other services, 100; education and health services, 100; and trade, transportation and utilities, 100. In addition to manufacturing, losses occurred in financial activities, 100; and professional and business services, 100.

There were 500 more farm jobs in May, which Alcocer attributed to a seasonal spike. The leisure and hospitality sector also typically trends much higher during summer months, but high gas prices and soaring airline ticket prices have been a blow to the industry. The county lost 500 jobs in the tourism field from a year ago.

That's surprising, Watkins said, noting that the weak dollar should have attracted more overseas tourists.

— The Associated Press contributed to this report.

On the Net:

http://www.edd.ca.gov