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Title: California's jobless rate hits high of 12.6% in March
Source: LA Times
URL Source: http://www.latimes.com/business/la- ... bs17-2010apr17,0,7129545.story
Published: Apr 16, 2010
Author: LA Times
Post Date: 2010-04-16 15:06:01 by WhiteSands
Keywords: Economy, Jobs
Views: 86
Comments: 4

California's unemployment rate reached a new high in March, hitting 12.6%, bolstering fears that joblessness will remain a persistent problem for the foreseeable future. The state's unemployment rate in February was 12.5%.

The battered economy added nonfarm 4,200 jobs in March, primarily in the sectors of manufacturing, educational and health services, and leisure and hospitality. But the unemployment rate rose as formerly discouraged workers resumed their employment search. There were 117,000 more Californians seeking work in March than in February.

California's jobless rate remains well above the national rate of 9.7% as its construction and financial services sectors continue to struggle. California was tied with Rhode Island for the third-highest unemployment rate in the nation, after Michigan and Nevada, according to data released Friday morning by the Bureau of Labor Statistics

Though the Golden State added jobs last month, more than 2.3 million Californians are still unemployed. The struggle for some is about to get tougher. Tens of thousands have been out of work so long that their unemployment checks will be cut off within the next few weeks. Despite President Obama's approval on Thursday of an $18-billion measure that extends jobless benefits for many Americans through June 2, the Employment Development Department estimates that about 100,000 Californians will have exhausted their benefits completely by this weekend. They are not helped by the measure passed Thursday.

"Jobs have not been quickly multiplying, so there's a lot of people who are still in need of assistance," said Loree Levy, a spokeswoman with the Employment Development Department.

California has lost more than 1.3 million jobs since December 2007.

Typically, unemployment benefits in California last 26 weeks. But in the last two years, four sets of federal extensions have added 53 weeks. Another program, called FED-ED in California, added 20 weeks on top of that, bringing the total potential benefits to 99 weeks.

That's the longest duration of jobless benefits made available in recent memory, Levy said. But the U.S. economy has experienced an almost unbroken string of employment losses since December 2007. Employers remain cautious about hiring. On average, there are 5.5 job applicants for every opening, according to Maurice Emsellem, policy co-director at the National Employment Law Project. For those about to lose benefits, the clock is ticking.

"They're on the leading edge of the demand, and for the first time, there's no more further weeks being discussed," Levy said.

Some unemployed workers will be helped by the measure passed Thursday. They had already qualified for previous extensions of benefits, but were not able to receive them because Congress had not yet authorized the funding. Emsellem estimates that the measure will help 424,000 people who otherwise would have run out of benefits by the end of the week.

Proponents have characterized the measure as a lifeline for jobless Americans in a weak labor market. But critics concerned about ballooning deficits contend the federal government should not bankroll further benefits until it reduces spending elsewhere.

"The best unemployment benefit is a job," said Sen. Tom Coburn (R-Okla.). "This is a debate between members of Congress who are addicted to borrowing and spending and those who have realized the time to make hard choices is now."

Michael Patterson, a 45-year-old aspiring actor, says he'd much rather have a job than collect benefits every month.

"It makes you feel like you're committing a crime," he said, standing in the office of a WorkSource Center in Los Angeles' Chinatown, where he was looking for a job.

Patterson is on his third extension of benefits. When he first lost his job with a temp agency, he gave up his apartment and moved in with his family in Palmdale. But he said they too are struggling financially, so he moved out a few months ago. Now he pays $210 a month to sleep on the floor of a friend's apartment, and he sometimes goes to the L.A. Mission to eat.

Many of the long-term jobless in California were employed in industries decimated by the recession, including construction and business and professional services, said Esmael Adibi, an economist at Chapman University.

"For those people, the outlook is grim," Adibi said.

The construction, information, government and financial activities sectors continued to shed jobs in California in March, according to the Employment Development Department.

About 38% of the unemployed in California -- about 803,000 people -- have been out of work for 27 weeks or more. That's twice as many people as a year ago.

Many companies are squeezing more work out of existing employees and delaying hiring anyone new, said Philip J. Romero, dean of the College of Business and Economics at Cal State L.A. Productivity grew 6.9% in the fourth quarter of 2009, the steepest growth rate since 2003.

The unemployment rate in Los Angeles County remained steady at 12.4% in March, as employers added 9,900 jobs, the Employment Development Department said this morning. The leisure and hospitality industry showed the most gains in the county, adding 3,700 jobs. Orange County's unemployment rate increased to 10.1%, from a revised 9.8% in February, although employers in that county added 7,300 jobs.

San Diego County saw its unemployment rate rise to 11%, from a revised 10.7% in February. That county added 5,000 jobs.

The Inland Empire, which includes Riverside and San Bernardino counties, gained 5,700 jobs, but still saw its unemployment rate rise to 15%, up from a revised 14.8% in February.

The trade, transportation and utilities sector in the Inland Empire has lost 10,300 jobs since a year ago, though it added 500 jobs in March. The sector is heavily influenced by U.S. consumer spending, because workers in those industries move goods from coastal ports to the rest of the country.

Juan de la Rocha lost his warehouse job more than a year ago. He lost his apartment and moved into a motel with his girlfriend and their 11-year-old daughter, paying rent by the week. He recently received notice that his unemployment benefits are set to expire.

So he moved his family in with his sister, who still has a job. De la Rocha remains in the motel because his sister's place is too cramped. He figures he'll live on the street when his checks stop coming.

"It's no life for them to be out there with me," he said.

alana.semuels@latimes.com

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#1. To: WhiteSands (#0)

Ohio is 'officially' over 11% today. The real number here is over 20%.

my anti groupie can't get through life without me.

Badeye  posted on  2010-04-16   15:23:16 ET  Reply   Trace   Private Reply  


#2. To: Boofer (#1)

Yep...hasn't been that bad there since Reagan was POTUS.

And challenge the 20%.

#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace

war  posted on  2010-04-16   15:26:21 ET  Reply   Trace   Private Reply  


#3. To: Badeye (#1)

Yep...hasn't been that bad there since Reagan was POTUS.

Courtesy of Dwarf

Chortle.....

Amazing ain't it?

I'll wait for the additional comedy courtesy of this buffoon maybe tomorrow after the poodle fills up his 17 hour posting session:):)

Actually, I'm a bit surprised dwarf didn't instead go off on boosh.

Death to everybody who does not get outta my way. And the latest Eisteinian revelation from LF's resident Barack poodleboy...AKA Admiral Dwarf who has "shot at living things"...."Yeah, and Oswald was a right winger, too. He was... war posted on 2010-03-22 20:12:36

e_type_jag  posted on  2010-04-18   19:35:28 ET  Reply   Trace   Private Reply  


#4. To: e_type_jag (#3)

My anti groupie hasn't had an original thought SINCE Reagan...and it was a mistake at that. Why bother reading it?

I can see NOVEMBER from my House....

Badeye  posted on  2010-04-18   21:00:20 ET  Reply   Trace   Private Reply  


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