Berkeley's Unemployment Rate Drops to Three-Year Low

The unemployment rate dropped across Alameda County and the East Bay in December — but Berkeley's decline was accelerated, dipping to a three-year low.

The preliminary numbers from the state's Employment Development Department show that the number of unemployed Berkeleyans was 8.9 percent in December 2011, compared to 9.1 percent in November. The rate has continued to drop since July, when it was 10.5 percent.

Meanwhile, the East Bay unexpectedly shed 4,000 jobs in December, a month that traditionally sees an increase in employment opportunities.

In December, the total number of jobs in the East Bay dropped from 959,000 the month before to 955,000.

Leisure and hospitality took the biggest hit, losing 2,000 jobs in a month when it usually gains 400. Food and drink establishments showed the biggest declines.

Professional and business services shed 1,300 jobs — around 200 jobs less than usual. 

Government services had 1,100 fewer jobs, which was close to the average for December. Manufacturing lost 100 jobs.

Construction was one of the few bright spots. After losing 800 jobs in November, the industry added 400 in December.

There was good news too for education and health fields, which saw an increase of 400 jobs. The financial services sector, as well as trade and utilities, saw a bump of 100 jobs.

Cindy Sugrue, a labor market consultant for the state EDD, said it's uncertain why December lost so many jobs. She said the shaky economy is the most likely cause.

"I think it shows there still some struggles out there," said Sugrue.

Despite the job losses, the East Bay's unemployment rate dropped from 9.5 percent in November to 9.3 percent in December. The rate was 10.8 percent in December 2010.

Alameda County's unemployment rate dropped to 9.3 percent in December from 9.6 percent the previous month.

California's unemployment rate was 10.9 percent in December. Nationwide, the rate was 8.3 percent.