Please ensure Javascript is enabled for purposes of website accessibility
California Jobless Rate Falls With Help of Temporary Jobs
gvw_ap_news
By Associated Press
Published 4 years ago on
September 18, 2020

Share

SACRAMENTO — A raft of temporary government jobs for the U.S. Census boosted California’s economic picture in August as the state added 101,900 jobs and saw its unemployment rate — now at 11.4% — fall below the high-water mark of the Great Recession for the first time since March.

But experts warned that other indicators — including new unemployment claims, consumer spending and job postings — still show the world’s fifth-largest economy has stalled with no quick recovery in sight.

California lost more than 2.6 million jobs in March and April as the government ordered businesses to close and people to stay home to slow the spread of the coronavirus, which has killed more than 14,700 Californians.

California lost more than 2.6 million jobs in March and April as the government ordered businesses to close and people to stay home to slow the spread of the coronavirus, which has killed more than 14,700 Californians.

California has now regained nearly a third of those jobs lost, according to numbers Friday by the Employment Development Department. But the unemployment rate fell in part because the labor force has declined by nearly 800,000 people since February as parents are forced to stay home with their children and others have decided to go back to school to learn new skills in a challenging job market, said Sung Won Sohn, professor of finance and economics at Loyola Marymount University.

“The thing about this pandemic, we tend to talk about the averages and the jobless rate and how many jobs we have created,” he said. “It’s kind of like saying the average depth of the Mississippi River is 3 feet deep. But if you try to walk across, you could drown. And many small businesses are drowning.”

Of the 101,900 jobs added in March, more than 64% were government jobs. Most of those are temporary jobs for the U.S. Census while others can be attributed to local government hires as school started back, at least virtually. Not counting the government jobs, California’s private sector added 35,800 jobs.

The Biggest Losses in California Continue to Come From Restaurants and Hotels

California outperformed the nation as a whole, with its unemployment rate in August falling 2.1 percentage points compared to July while the national rate fell 1.8 percentage points to 8.4%. Six of the state’s 11 industry sectors gained jobs last month. But compared to August of 2019, California has lost nearly 1.6 million nonfarm jobs.

“In some ways, it is difficult to know what to make of this morning’s numbers,” said Michael Bernick, former director of the state Employment Development Department and an attorney with Duane Morris. “They are not consistent with the numbers we’ve seen over the past month on new unemployment claims in California which have been running very high.”

The biggest losses in California continue to come from restaurants and hotels and other hospitality businesses, which lost another 14,600 jobs in August.

Of California’s 58 counties, state officials say the coronavirus is “widespread” in 30 of them, a designation that imposes automatic bans on indoor dining and other business restrictions. The numbers have been improving statewide, but outbreaks continue to pop up, most notably in San Diego County. The fifth-most populous county in the country is in danger of being moved back to the “widespread” category, which could trigger another round of business closings.

In Los Angeles County, the nation’s most populous with more than 10 million residents, the economic downturn continues to have an outsized impact because of its service and entertainment-heavy economy and its large number of minority-owned small businesses. The county’s unemployment rate is 16.6%, more than 5 percentage points higher than the statewide average.

Only Imperial County’s 22.9% unemployment rate is higher.

DON'T MISS

Newsom Gaslights on Potential Gas Price Hikes in Fresno Visit

DON'T MISS

Automakers to Trump: Please Require Us to Sell Electric Vehicles

DON'T MISS

President Biden Welcomes 2024 NBA Champion Boston Celtics to White House

DON'T MISS

Ohtani Makes History With 3rd MVP, Judge Claims 2nd AL Honor

DON'T MISS

Trump Chooses Pam Bondi for Attorney General Pick After Gaetz Withdraws

DON'T MISS

Average Rate on a 30-Year Mortgage in the US Rises to Highest Level Since July

DON'T MISS

Cutting in Line? American Airlines’ New Boarding Tech Might Stop You at Now Over 100 Airports

DON'T MISS

MLB Will Test Robot Umpires at 13 Spring Training Ballparks Hosting 19 Teams

DON'T MISS

Death Toll in Gaza From Israel-Hamas War Passes 44,000, Palestinian Officials Say

DON'T MISS

Jussie Smollett’s Conviction in 2019 Attack on Himself Is Overturned

UP NEXT

What Will Happen to CNBC and MSNBC When They No Longer Have a Corporate Connection to NBC News?

UP NEXT

Major Storm Drops Record Rain, Downs Trees in Northern California After Devastation Further North

UP NEXT

Newsom Heads to Fresno, a County That Voted for Trump

UP NEXT

Conservative Professors and Students Are Beating CA Community Colleges in Court

UP NEXT

Thousands of University of California Workers Go on 2-Day Strike Over Wages, Staff Shortages

UP NEXT

Gavin Newsom Pledged to Release His Tax Returns Every Year. The Last One Was for 2020.

UP NEXT

California Governor Will Not Make Clemency Decision for Menendez Brothers Until New DA Reviews Case

UP NEXT

Fewer Kids Are Going to California Public Schools. Is There a Right Way to Close Campuses?

UP NEXT

California Voters Reject Measure That Would Have Raised Minimum Wage to Nation-High $18 Per Hour

UP NEXT

Bomb Cyclone Kills 1 and Knocks Out Power to Over Half a Million Homes Across the Northwest US

Ohtani Makes History With 3rd MVP, Judge Claims 2nd AL Honor

1 hour ago

Trump Chooses Pam Bondi for Attorney General Pick After Gaetz Withdraws

1 hour ago

Average Rate on a 30-Year Mortgage in the US Rises to Highest Level Since July

2 hours ago

Cutting in Line? American Airlines’ New Boarding Tech Might Stop You at Now Over 100 Airports

2 hours ago

MLB Will Test Robot Umpires at 13 Spring Training Ballparks Hosting 19 Teams

2 hours ago

Death Toll in Gaza From Israel-Hamas War Passes 44,000, Palestinian Officials Say

3 hours ago

Jussie Smollett’s Conviction in 2019 Attack on Himself Is Overturned

3 hours ago

Fresno Council Lowers Speed Limits on Friant and Audubon

3 hours ago

How About an Honest Conversation About the Range of Light Monument Proposal?

4 hours ago

UConn Coach Geno Auriemma Breaks NCAA Wins Record With 1,217th Victory

5 hours ago

Newsom Gaslights on Potential Gas Price Hikes in Fresno Visit

Gov. Gavin Newsom in a stop Thursday in Fresno defended the recent actions of his air board, saying he takes “pride” in new clim...

7 minutes ago

7 minutes ago

Newsom Gaslights on Potential Gas Price Hikes in Fresno Visit

President Joe Biden with Mary Barra, the chief executive of General Motors, at the Detroit Auto Show, Sept. 14, 2022. President-elect Donald Trump has promised to erase the Biden administration’s tailpipe rules designed to get carmakers to produce electric vehicles, but most U.S. automakers want to keep them. (Doug Mills/The New York Times)
38 minutes ago

Automakers to Trump: Please Require Us to Sell Electric Vehicles

42 minutes ago

President Biden Welcomes 2024 NBA Champion Boston Celtics to White House

1 hour ago

Ohtani Makes History With 3rd MVP, Judge Claims 2nd AL Honor

Former Florida Attorney General Pam Bondi, speaks before Republican presidential nominee former President Donald Trump arrives to speak at a campaign rally at First Horizon Coliseum, Saturday, Nov. 2, 2024, in Greensboro, NC. (AP/Alex Brandon)
1 hour ago

Trump Chooses Pam Bondi for Attorney General Pick After Gaetz Withdraws

2 hours ago

Average Rate on a 30-Year Mortgage in the US Rises to Highest Level Since July

2 hours ago

Cutting in Line? American Airlines’ New Boarding Tech Might Stop You at Now Over 100 Airports

2 hours ago

MLB Will Test Robot Umpires at 13 Spring Training Ballparks Hosting 19 Teams

Help continue the work that gets you the news that matters most.

Search

Send this to a friend