Please ensure Javascript is enabled for purposes of website accessibility
New Virus Rules Threaten California's October Job Gains
gvw_ap_news
By Associated Press
Published 4 years ago on
November 21, 2020

Share

SACRAMENTO — California’s beleaguered restaurant and hospitality industry rebounded in October, adding 66,000 jobs as the unemployment rate in the nation’s most populous state dipped below 10% for the first time since the pandemic upended its economy in March.

But the gains are likely to be short-lived as a surge of cases has already prompted new restrictions on businesses, including forcing most restaurants to halt indoor dining during the cold and rainy winter months. Starting Saturday, the state will enforce a 10 p.m. curfew that could further curtail people’s leisure spending.

“With the renewed lockdowns, these jobs are in peril now,” said Michael Bernick, an attorney and former director of California’s Employment Development Department.

Overall, California added 145,500 nonfarm payroll jobs — with farmwork excluded because of its seasonal fluctuations — as the unemployment rate fell to 9.3% in October. It was the sixth consecutive month of job growth after the state lost more than 2.6 million jobs in March and April because of a statewide stay-at-home order prompted by the pandemic.

California has now gotten 44% of those jobs back, according to a report released Friday by the state Employment Development Department. But the report shows more than 1.7 million people are still out of work, up more than a million from this time last year.

Meanwhile, data from Harvard and Brown universities show California’s job losses are not equally distributed, with employment rates for jobs paying than $60,000 a year declining just 1.3% since January while employment rates for jobs paying below $27,000 a year have declined 28.1%.

“This fault line was present before the pandemic. It has grown during the pandemic,” Bernick said.

While Most Accepted Newsom’s Restrictions in March, His Latest Order Has Received Pushback

Gov. Gavin Newsom’s administration has been pleading with people to follow public health guidelines, a message undermined by Newsom himself when he attended a birthday party at an expensive Napa county restaurant earlier this month. Friday, Newsom’s Labor Secretary Julie Su took on the role of urging people to comply.

“California’s ongoing economic recovery depends upon each and every one of us doing our part,” Su said in a joint statement with Chris Dombrowski, acting director of the Governor’s Office of Business and Economic Development. “How we choose to navigate public and workplace interactions will have a direct impact on our loved ones, our communities, and our economy.”

While most accepted Newsom’s restrictions in March, his latest order has received pushback from many parts of the state seven months into the pandemic. Assemblyman James Gallagher, a Republican from Yuba City, said the curfew and other new restrictions “will only further decimate struggling businesses that already face some of the toughest hurdles in the country.”

Newsom responded Friday by announcing a $175 million small business loan program backed by $75 million from the state. Dubbed the “California Rebuilding Fund,” it will offer loans of up to $100,000 to small businesses, giving companies up to five years to pay the money back at a 4.25% interest rate.

“Ensuring small businesses have access to capital will help stimulate economic growth across the state,” Newsom said in a news release.

The fund was the most significant recommendation from Newsom’s glitzy Task Force on Business and Jobs Recovery, which was led by billionaire Tom Steyer and featured heavy- hitters like Apple CEO Tim Cook and all four living former governors. The task force concluded six months of work on Friday by issuing a 27-page report that outlined “principles” for the state to follow, including preserving “California’s competitive edge” and continuing to “support essential workers.”

The jobs report is based on a survey conducted during the week of Oct. 12. Nine of the state’s 11 industry sectors gained jobs. The biggest gains were the 66,000 jobs in leisure and hospitality, 35,800 jobs in professional and business services and 26,300 jobs in construction.

California continues to outpace the rest of the country in weekly filings for unemployment benefits. While California accounts for roughly 11% of the nation’s workforce, the state had more than 20% of the nation’s unemployment claims last week.

Since March, California has paid $110 billion in unemployment benefits and processed 16.4 million claims. Many of those people have benefited from the federal government’s pandemic unemployment assistance program, which extends unemployment benefits to people who normally are not eligible for them — including independent contractors.

An estimated 750,000 Californians could lose their unemployment benefits in December as various federal government programs are set to expire, according to an analysis by the California Policy Lab.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Hey PG&E Customers, Get Ready for New ‘Transaction Fees’

DON'T MISS

Fresno County Ending ‘Squaw Valley’ Fight After Latest Court Ruling

DON'T MISS

Exclusive: Tesla to Delay US Launch of Affordable EV, a Lower-Cost Model Y, Sources Say

DON'T MISS

Clovis Reconsiders Recycling Vote. Will a Campaign Contribution Matter?

DON'T MISS

Gov. Newsom Offers $50K Reward in 2022 Kings County Homicide

DON'T MISS

Trump’s White House Launches COVID Website That Criticizes WHO, Fauci and Biden

DON'T MISS

Fresno ‘Powers Up’ the Nation’s Largest Combined Solar and Battery Storage Project

DON'T MISS

Trump Admin Asserts COVID-19 Originated in Chinese Lab, Targets Fauci

DON'T MISS

Vendors Back at Fresno’s Art Hop? Survey Wants to Know What You Think

DON'T MISS

Russian Missile Attack Kills One, Wounds 112 in Ukraine’s Kharkiv, Officials Say

UP NEXT

What Happens After a Homeless Person Is Arrested for Camping? Often, Not Much

UP NEXT

2 Killed and 5 Hurt in Florida State University Shooting; Gunman in Custody

UP NEXT

Supreme Court to Hear Arguments on Trump Plan to End Birthright Citizenship

UP NEXT

Popular AIs Head-to-Head: OpenAI Beats DeepSeek on Sentence-Level Reasoning

UP NEXT

Al Sharpton Calls Meeting With Target’s CEO Amid DEI Backlash ‘Very Constructive and Candid’

UP NEXT

Former Pentagon Spokesman Tied to Online DEI Purge Was Asked to Resign

UP NEXT

The Kings Agree to Hire Scott Perry as General Manager, AP Source Says

UP NEXT

LA’s Schools Chief Knows What It’s Like to Be Undocumented

UP NEXT

Shooting at Florida State Sends Students Running; Nearby Hospital Says It’s Treating People

UP NEXT

Valero Books $1.1 Billion Impairment, May Idle California Refinery

Clovis Reconsiders Recycling Vote. Will a Campaign Contribution Matter?

9 hours ago

Gov. Newsom Offers $50K Reward in 2022 Kings County Homicide

9 hours ago

Trump’s White House Launches COVID Website That Criticizes WHO, Fauci and Biden

10 hours ago

Fresno ‘Powers Up’ the Nation’s Largest Combined Solar and Battery Storage Project

10 hours ago

Trump Admin Asserts COVID-19 Originated in Chinese Lab, Targets Fauci

11 hours ago

Vendors Back at Fresno’s Art Hop? Survey Wants to Know What You Think

11 hours ago

Russian Missile Attack Kills One, Wounds 112 in Ukraine’s Kharkiv, Officials Say

11 hours ago

Iran Says Nuclear Deal Is Possible if Washington Is Realistic

11 hours ago

49ers Look to Strengthen Depleted Defense in NFL Draft

12 hours ago

Habit Burger & Grill Quietly Drops Impossible Burger From Menu

12 hours ago

Hey PG&E Customers, Get Ready for New ‘Transaction Fees’

Pacific Gas & Electric customers are already paying some of the nation’s highest rates for electricity, and their bills could be g...

8 hours ago

8 hours ago

Hey PG&E Customers, Get Ready for New ‘Transaction Fees’

8 hours ago

Fresno County Ending ‘Squaw Valley’ Fight After Latest Court Ruling

Tesla Inc. vehicle facility is pictured in Costa Mesa, California, U.S., November 1, 2023. (REUTERS/Mike Blake/File Photo)
8 hours ago

Exclusive: Tesla to Delay US Launch of Affordable EV, a Lower-Cost Model Y, Sources Say

9 hours ago

Clovis Reconsiders Recycling Vote. Will a Campaign Contribution Matter?

California Gov. Gavin Newsom speaks during a press conference in Los Angeles, Wednesday, Sept. 25, 2024. Newsom vetoed a landmark bill aimed at establishing first-in-the-nation safety measures for large artificial intelligence models Sunday, Sept. 29. (AP Photo/Eric Thayer, File)
9 hours ago

Gov. Newsom Offers $50K Reward in 2022 Kings County Homicide

The logo of the World Health Organization is seen at the WHO headquarters in Geneva, Switzerland, January 28, 2025. (REUTERS/Denis Balibouse/File Photo)
10 hours ago

Trump’s White House Launches COVID Website That Criticizes WHO, Fauci and Biden

10 hours ago

Fresno ‘Powers Up’ the Nation’s Largest Combined Solar and Battery Storage Project

11 hours ago

Trump Admin Asserts COVID-19 Originated in Chinese Lab, Targets Fauci

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

Search

Send this to a friend