California again led states in a key but unwelcome economic indicator in August
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CALIFORNIA AGAIN HAS HIGHEST UNEMPLOYMENT
Via David Lightman...
California again had the nation’s highest state unemployment rate last month.
It was 5.5%, well above the national rate of 4.3%. South Dakota had the lowest rate, 1.9%.
California actually gained 3,800 nonfarm payroll jobs last month, though a revision in the July number showed a job loss of 300. The 5.5% rate was unchanged from July, even as the national rate rose one-tenth of a percentage point.
Six of the 11 employment areas tracked by the state Employment Development Department showed gains.
But there is concern that the outlook might not be rosy. The California Economic Forecast, a private Santa Barbara-based group, has predicted the state rate will climb to 6% and stay at that level through next year.
Michael Bernick, former state EDD director and now an employment attorney, said the state’s economy is “adrift,” and noted that in almost all of California’s private-sector industries — construction, manufacturing, financial activities, business and professional services — there were declines in August.
The only significant job growth came in private education, healthcare services, and leisure and hospitality areas.
While layoffs have not gone up significantly, Bernick said, “hiring has slowed, as employer caution remains — due to the ongoing economic uncertainty, and movement to leaner employment structures.”
The Federal Reserve’s decision last week to lower its target interest rate by one-quarter of a percentage point will be closely watched.
A Governor’s Office spokesperson directed a request for comment to the Labor & Workforce Development Agency. A spokesperson for the agency said: “While the nation faces a rising unemployment rate, California’s job market held steady in August — adding jobs and maintaining its unemployment rate despite ongoing national economic pressures.”
GAVIN NEWSOM SPEAKS
On Friday, Gov. Gavin Newsom addressed reporters after signing energy and environmental-related bills in San Francisco.
On setting aside funding to continue construction of the controversial high-speed rail project, Newsom said that the project had cleared significant land and environmental hurdles. “This is the part that we’ve been waiting for years and years and years and to abandon at this point would be absurd.”
On pending legislation in Congress to ban redistricting efforts in California, Texas and other states: “Let’s do it.”
On large amounts of money raised so far to support Proposition 50, which would gerrymander California’s congressional districts to benefit Democrats if it is approved by voters in November: “We’ve raised an extraordinary amount of money because the awareness on this is not just across the state of California, but there’s awareness all across this country,” adding that both big and small donors “recognize that our democracy’s at stake.”
On artificial intelligence regulation: “We have a regulatory posture that supports risk taking, but we’re trying to balance recklessness.”
QUOTE OF THE DAY
“Hiking. Will call back.”
— What former Vice President Kamala Harris said Newsom texted her after Harris called him following former President Joe Biden’s decision to drop his re-election campaign. Harris, in a new book, said Newsom did not follow through on that call. Newsom said Friday he was busy trying to figure out more about Biden’s decision to drop out of the race and was working on a statement with aides to endorse Harris at the time of his text response.
Best of The Bee:
- Newsom signs package promising to lower energy bills and fund high-speed rail via Nicole Nixon
- Who’s donating millions for, against Prop. 50, California’s redistricting fight? via Lia Russell and Nicole Nixon
- Cool Patch Pumpkins’ maze on Interstate 80 near Dixon opens as tribute to farmers via Camila Pedrosa
- A Placerville eatery featured on Food Network will be closing in October via Camila Pedrosa
