Skip to content

California’s unemployment rate grows to 12% in July – latimes.com

August 20, 2011

California’s jobless rate grows to 12% in July

The rate ticks up from 11.8% in June. The state now has the second-highest rate of unemployment in the U.S., trailing only Nevada at 12.9%.

By Marc Lifsher, Los Angeles Times

August 20, 2011

Reporting from Sacramento—

California’s unemployment rate increased in July while job creation slowed to a crawl, fueling fears that the state’s fragile recovery is faltering.

The jobless rate last month ticked up to 12% from 11.8% in June, according to figures released Friday by the state Employment Development Department. California now has the second-highest rate of unemployment in the nation, trailing only Nevada at 12.9%, and its jobless rate is well above the U.S. average of 9.1%.

The July hiring picture was bleak. California employers added just 4,500 new jobs last month, a steep drop from the revised 30,400 jobs added in June.

“The California economy is treading water. It’s growing but not fast enough to create net new jobs,” said Scott Anderson, a senior economist at Wells Fargo Securities. “The recent knock in consumer and business confidence could be enough to tip California back into recession.”

Analysts said California was performing worse than the nation largely because of its real estate hangover. When the property bubble burst, it wiped out 1.3 million jobs, many of them in construction, real estate and mortgage-related financial services. Those sectors have yet to recover.

And while pockets of the Golden State are doing well, including San Diego’s bio-sciences companies and technology firms in the Bay Area, their growth hasn’t been strong enough to pull California out of its jobs hole.

The state’s fiscal woes are also proving to be a drag on employment. The public sector is a major employer in California, which in the past has acted as bulwark during tough times. But deep budget cuts are forcing many local governments to shed workers this time around.

via California’s unemployment rate grows to 12% in July – latimes.com.

Advertisements
2 Comments
  1. August 20, 2011 12:56 PM

    California Democrats, Republicans face mortgage defaults, 12% unemployment, pay reductions, loss of unemployment benefits.

    University of California Berkeley – salary increases for chancellors faculty

    email your opinion to UC Board of Regents dianne.griffiths@ucop.edu

  2. August 25, 2011 7:49 PM

    As businesses, universities, states, counties, cities worldwide stumble through the recession some find themselves in a phase of creative disassembly. Hundreds of thousands of jobs are shed. World class University of California Berkeley Chancellor Birgeneau ($500,000 salary) and his $7 million outside consultants are firing employees via his “Operational Excellence (OE)”: 2,000 axed by end 2011. Yet many cling to an old assumption: the implied, unwritten management-employee contract.

    Management promised work, upward progress for employees fitting in, employees accepted lower wages, performing in prescribed ways, sticking around. Longevity was good employer-employee relations; turnover a dysfunction. None of these assumptions apply in the 21 century economy. Businesses, universities, public institutions can no longer guarantee careers, even if they want to. Managements paralyzed themselves with a strategy of “success brings successes” rather than “successes brings failure’ and are now forced to break implied contract with employees – a contract nurtured by management that future can be controlled.

    Jettisoned employees are discovering that hard won knowledge earned while loyal is no longer desired in employment markets. What contract can employers, employees make with each other?

    The central idea is simple, powerful: job is a shared partnership.
    • Employers, employees face financial conditions together; longevity of partnership depends on how well customers, constituencies needs are met.
    • Neither management nor employee has future obligation to the other.
    • Organizations train people.
    • Employees create security they really need – skills, knowledge that creates employability in 21st century economies
    • The management-employee loyalty partnership can be dissolved without either party considering the other a traitor.

    Sustained employability in the 21st century economy is not loyalty to management, company, university, public agency or union. Employability: are you employable?

Comments are closed.

%d bloggers like this: