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California Jobless Rate Hit 11.2% in March
Saturday, April 18, 2009 6:55 AM


(Source: The Sacramento Bee)trackingBy Dale Kasler, The Sacramento Bee, Calif.

Apr. 18--Unemployment punched through 11 percent in California and Sacramento last month, reaching historic levels as the recession produced fresh layoffs in retailing, construction and other industries.

Statewide unemployment jumped six-tenths of a point in March, to 11.2 percent, the Employment Development Department said Friday.

But the disappearance of 62,100 jobs was the smallest monthly job loss since October, and only half as bad as February's. That provided some encouragement for beleaguered state officials.

"This was a glimmer of hope here," said Howard Roth, chief economist at the state Department of Finance, echoing the phrase used by President Barack Obama recently in describing the national economy.

Still, the unemployment rate was the highest in California since the 11.7 percent recorded in January 1941, although the numbers were calculated differently back then. In the modern era of record-keeping, which began in 1976, the new rate was the highest ever, topping the 11 percent mark recorded three times in the early 1980s.

Sacramento unemployment increased a half-point to 11.3 percent, also a record. Unemployment in Sacramento did get to 12.9 percent in 1983, but the geographic boundaries of the region were different then.

One of the biggest job losers in California last month was the sector known as professional and business services, which takes in a wide range of occupations from law to bookkeeping to office temp work.

In Sacramento, the health care industry -- one of the last growth sectors -- showed signs of frailty, as 100 jobs were cut.

March was the fifth straight month in which at least 60,000 jobs disappeared statewide. Still, some experts believe the avalanche of job cuts might be nearing an end.

"The unprecedented job shedding, in terms of just the speed and large layoffs, has bottomed," said Michael Bernick, a senior fellow at the Milken Institute and former EDD director.

Still, unemployment will likely continue to rise. Most experts believe the recovery won't begin until fall at the earliest, and hiring probably won't resume in earnest until well after that. The University of the Pacific's business forecaster has said unemployment will exceed 12 percent in Sacramento next year.

The rise in unemployment has been stunning. The state's rate has increased 4.8 percentage points since March 2008, the worst one-year leap in modern history.

In some regions, the jump has been even more dramatic: Unemployment has risen 8.6 points in Colusa County to a worst-in-the-state 25.6 percent. It's up 6.8 points in the Yuba City area, to 19.5 percent.




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