Between December 2004 and December 2005, the total number of jobs was up by 18,300, an increase of 2.1 percent, the largest annual gain since 2001 and the first time since January 2003 that the percent gain rose above the 2.0 percent mark.

· Retail trade is up by 4,600 jobs and construction by 3,200 jobs. Professional and business service jobs follow closely with an increase of 3,100 jobs.

· Government payrolls were up by 3,600 jobs. Of that, local government accounted for 2,000 jobs, with 1,200 in local education jobs, while the state contributed 1,500 jobs.

· Manufacturing remained up, contributing 1,500 jobs to the annual gain, while leisure and hospitality added 1,700 jobs that were heavily concentrated in restaurants and food service.

· The information sector employment declined by 800 jobs, while farm jobs decreased by 600 when compared to last year.

The release of these improving job numbers coincides with a number of other positive trends:

Sacramento's commercial leasing activity is up. The region's commercial real estate picture remained bright for the last quarter of 2005, with housing and job growth fueling gains in the office, retail and industrial sectors. According to real estate brokerage Cornish & Carey Commercial, fourth-quarter office vacancies in the greater Sacramento area fell to about 14.1 percent, down nearly 1.3 percentage points from the same quarter in 2004.

The Sacramento Bee reports that commercial real estate watchers said the falling vacancy rates were proof of the Sacramento area's economic strength. Demand for office space generally parallels demand for workers. said John Frisch, senior vice president of Cornish & Carey's Sacramento office. "There's a lot of job growth there, and it appears to be higher-paying jobs because companies are moving into more expensive space. It's the most expensive space in the region, aside from downtown Sacramento." The leasing data has been strong throughout the year and coincides with the latest employment data that shows larger job gains.

SACTO's prospects are up
The great Barbara Hayes and Bob Burris at the Sacramento Area and Commerce Agency say the prospects of employers looking at our region is up and some can't find enough space. Notable too are many firms are manufacturers, most with a business need to be in California or the West Coast. Bay area firms also continue to scout the area.

At a recent Sacramento Training and Response Team meeting, some other information shared by foks in the know suggest we enter 2006 with good momentum:

Staff from the Sacramento Works Career Centers said yesterday they have seen a whopping 300 percent increase in job orders during the year. Most economic developers yesterday talked about increasing interest and demand in the region.

Some notables:

Sacramento's latest job numbers are outpacing the Nation, the State and is the among the strongest in the State when compared to other metro areas.

Manufacturing continues to show strength

Transportation and distribution jobs are increasing, particularly Woodland.

Yes, IKEA is opening in West Sacramento on March 1, 2006.

Automotive technology training schools are growing with jobs almost guaranteed to graduates for automotive technician positions.

Security firms are hiring and security screeners are needed at Sacramento International Airport.

Gains are also occuring in education, health services, and some state government jobs as well.

At California State University, Sacramento's School of Computer Science and Engineering: We are seeing a "siege" of employers for their job fair, according to Cici Matiuzzi.

I listen to Cici! I just spoke with her today. She is an invaluable and incredible faculty and keen advisor at their Career Center. She keeps me in the loop and notes a big increase in hiring and the number of employers wanting to attend the Career Fair . She used the term "under siege" to describe the employers interest and need for new hires, particulary civil engineers. I think it is fairly conclusive the architectural and engineering services will remain a strong growth sector.

I may pass along some of Cici's comments in a later bulletins. CSUS, her students and we are all lucky to have her!

Finally, if all this is not enough, consider this from last year:

Sacramento and San Diego rank in top ten for Creative Talent. Fast Company magazine 10 Fastest Cities in America is a ranking of emerging hubs for creative talent in the United States. Cities were chosen based on those showing the highest rates of growth among the creative class, such as scientists, engineers, artists, cultural creatives, manager and professionals, who together comprise more than 30 percent of the U.S. economy and nearly half of the economy's wage and salary income. The Sacramento Area and Commerce Agency says it proudly demonstrates how far the Sacramento region has come. Between 1999 and 2003, Sacramento's creative class demographic was 4.3 percent, one of the highest upticks of the featured 10 U.S. cities. Other regional strengths that helped Sacramento make the list include the University of California, Davis as a worldwide center for viticulture and food-science research, and the region's close proximity Lake Tahoe, Yosemite and Napa. Daniel Libeskind's plan to build a condo tower downtown was also cited in the article.

Best wishes to you all,

We will miss you Peja!
David Lyon

Wow, that is upbeat.

Gillian Parrillo
The Sacramento Executive