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 5 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

Wired Wednesday: CEMEX’s New Mining Plan for the San Joaquin River

DON'T MISS

Trump Fires NSC Officials a Day After Far-Right Activist Raises Concerns to Him

DON'T MISS

China Halts Approvals for New US Investment Projects

DON'T MISS

Measles Spreads to Central Texas; 5 States Have Active Outbreaks

DON'T MISS

Trump Tariff Fears Erase $2 Trillion From US Stocks

DON'T MISS

Startup Offers Controversial Microplastic Blood Cleansing Treatment

DON'T MISS

Senate Confirms Mehmet Oz to Take Lead of Medicare and Medicaid Agency

DON'T MISS

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

DON'T MISS

Pence Will Receive the Profile in Courage Award From the JFK Library for His Actions on Jan. 6

DON'T MISS

Politics Turns Ugly for a Conservative Running for Fresno State Student Body President

UP NEXT

Startup Offers Controversial Microplastic Blood Cleansing Treatment

UP NEXT

Pence Will Receive the Profile in Courage Award From the JFK Library for His Actions on Jan. 6

UP NEXT

No More Calling ‘Shotgun?’ CA Could Ban Teens From Riding in Front Seat

UP NEXT

Diehard Baseball Fans in Sacramento Welcome Athletics and Hope They Stay Awhile

UP NEXT

Flores Homers, Matos and Wade Also Go Deep to Help Giants Cap Sweep of Astros

UP NEXT

California’s Schools Chief Has a $200,000 Salary and a Side Gig

UP NEXT

Trump Proposes Tax Deduction for Auto Loan Interest on US-Made Cars

UP NEXT

Western US Sees Sharp Increase in Extreme Weather Impact

UP NEXT

7-Year-Old Girl Was Killed by a Falling Boulder at a Lake Tahoe Ski Resort

UP NEXT

Xavier Becerra Enters 2026 California Governor’s Race

Measles Spreads to Central Texas; 5 States Have Active Outbreaks

5 hours ago

Trump Tariff Fears Erase $2 Trillion From US Stocks

6 hours ago

Startup Offers Controversial Microplastic Blood Cleansing Treatment

6 hours ago

Senate Confirms Mehmet Oz to Take Lead of Medicare and Medicaid Agency

7 hours ago

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

9 hours ago

Pence Will Receive the Profile in Courage Award From the JFK Library for His Actions on Jan. 6

9 hours ago

Politics Turns Ugly for a Conservative Running for Fresno State Student Body President

9 hours ago

Pentagon’s Watchdog to Review Hegseth’s Use of Signal App to Convey Plans for Houthi Strike

9 hours ago

President Trump’s Tariffs Could Be the Political Tipping Point

10 hours ago

Order That Kept Water in the Kern River Reversed by 5th District Court of Appeal

10 hours ago

Wired Wednesday: CEMEX’s New Mining Plan for the San Joaquin River

GV Wire’s Edward Smith talks with KMPH Fox 26 “Great Day” anchor Christina Rodriguez about the possibility of CEMEX digging a 600-foot hole ...

4 hours ago

4 hours ago

Wired Wednesday: CEMEX’s New Mining Plan for the San Joaquin River

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP/Mark Schiefelbein)
4 hours ago

Trump Fires NSC Officials a Day After Far-Right Activist Raises Concerns to Him

5 hours ago

China Halts Approvals for New US Investment Projects

5 hours ago

Measles Spreads to Central Texas; 5 States Have Active Outbreaks

6 hours ago

Trump Tariff Fears Erase $2 Trillion From US Stocks

6 hours ago

Startup Offers Controversial Microplastic Blood Cleansing Treatment

Dr. Mehmet Oz, President Donald Trump's pick to lead the Centers for Medicare and Medicaid Services, seated right, gives a thumbs-up alongside his wife Lisa Oz, seated left, with friends and family after he testified at his confirmation hearing before the Senate Finance Committee, on Capitol Hill in Washington, Friday, March 14, 2025. (AP/Ben Curtis)
7 hours ago

Senate Confirms Mehmet Oz to Take Lead of Medicare and Medicaid Agency

9 hours ago

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

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

Search

Send this to a friend