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California Unemployment Rate Higher Than Ever

Rebecca Kirkman |
March 11, 2010 | 11:08 a.m. PST

Staff Reporter

California releases state unemployment figures Wednesday. The numbers put
the state in the fifth highest spot nationwide. (Creative Commons)
The unemployment rate for eight California counties tops 20 percent, according to county-by-county figures released by the state Wednesday.
Imperial County topped the chart with an unemployment rate of 27.3 percent, while Merced County trailed at 21.7 percent.
California was one of five states to reach the highest unemployment rate on record this year, with a statewide unemployment rate of 12.5 percent in January.
California also ranked as the state with the fifth highest unemployment rate in the nation in January.
While the California unemployment rates increased, the national rate remained the same from January to February at 9.7 percent.
Economists say the national economy hasn't yet translated into job creation in California.
Budget problems in state and local government are expected to slow the state's job economy recovery, according to Stephen Levy, director of the Center for Continuing Study of the California Economy, in an interview with the LA Times.
Los Angeles County lost 21,000 jobs in the trade, transportation, and utilities sector last month.
In addition to job cuts, many employees are earning less due to cuts in pay or hours, and this decreases consumer spending, hurting the state's economy.
Although California had the highest number of job gains, it was among 30 states with an increase in unemployment January.
Nationally, 15 million Americans were unemployed in February, and about 40 percent have been unemployed for half a year or more.
Economists expect that the national unemployment rate has reached its peak but anticipate joblessness will linger, since the economy must add more than 100,000 new jobs each month to keep up with new entrants to the workforce.
The future of unemployment looks "strikingly good... much better than it had been looking," according to Dean Baker, co-director of the Center for Economic and Policy Research in Washington, who has been skeptical about earlier signs of recovery.
The national unemployment rate has not risen since October, and the Obama administration expects a slow but steady decrease in the future.
The projected unemployment rate for 2012, the year Obama is up for re-election, is 8.2 percent, and the rate will remain well over 6 percent until 2015, according to the annual Economic Report of the President.


 

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