California Unemployment Rate Rises To 12.1 Percent In August 2011

By Don Thompson, Associated Press

SACRAMENTO, Calif. (AP) -- California's jobless rate grew for the second straight month in August to 12.1 percent, led by continued sluggishness in the construction industry, the state Employment Development Department said Friday.

The unemployment rate had been declining since March until it spiked back to 12 percent in July. California's rate is the second highest in the nation, behind Nevada's 13.4.

"I would say it's a flat market," said Brad Kemp, director of regional research with Beacon Economics in Los Angeles. "I just think we have to get used to the fact that slow growth is the path that we're on, and I don't think that's going to change anytime soon."

Nonfarm payroll jobs fell by 8,400 during the month, with the construction industry suffering the biggest decrease, down 7,200 jobs.

The unemployment rate was a slight improvement from a year ago, when it was 12.4 percent. During the 12-month period that ended in August, California gained 171,000 jobs, even as nearly 2.2 million residents remained jobless.

Kemp said the uptick in last month's unemployment rate shows the state should not expect any dramatic improvement for at least the next year.

Two factors are contributing to the slow recovery, he said. First, employers began adding jobs last year when it looked as if the economy was rebounding. With uncertainty prevailing, they are absorbing those jobs before hiring again. Also, any growth in private industry jobs is being offset by public sector layoffs, as state and local governments adjust to lower revenue.

The state reported that six categories lost 17,500 jobs in August: construction; information; financial activities; educational and health services; other services; and government.

Five categories added 9,100 jobs last month. They were mining and logging; manufacturing; trade, transportation and utilities; professional and business services; and leisure and hospitality.

"You've got to have a long-term vision of the economy getting better before you see employers making any significant moves," Kemp said.

Aside from California and Nevada, Florida, Georgia, Michigan, Mississippi, North Carolina, Rhode Island and South Carolina all had unemployment rates of greater than 10 percent.

The national unemployment rate remained at 9.1 percent for a second month.

While construction firms and governments have been dropping jobs, retail hiring was up last month for only the second time since January, said Kevin Callori, a spokesman for the state's Employment Development Department.

Moreover, manufacturing jobs have increased in nine of the past 11 months, adding 22,000 jobs over that 11-month period. That reverses a trend that saw a loss in manufacturing jobs in 34 of the 38 months ending Sept. 2010.

"Over the year, we're still doing pretty well," Callori said.

Comments

[colourful]

01:52 AM on 09/20/2011

An employer gets 50 resumes.
While his job doesn’t require a college degree, he pulls college graduates first.
Of the graduates, he screens out those that don’t actually have experience.
Now that he’s established a pool he believes is most qualified, he starts searching through the social networking sites to see if he can find out just a little more about them.
He finds 16 out of the 20 he’s thought qualified on the sites.
1. One is pretty, but she has Christian prayers posted. He doesn’t want her because he thinks she may be a religious zealot, and doesn’t want that around the office.
2. Another is not so attractive, but has few friends. He thinks she may be hard to get along with.
3. He sees a handsome with lots of friends, but his post shows he's bi-sexual. He thinks, “he'll make the other guys uncomfortable.
4. Another candidate is attractive, has lots of friends, but appears to have several small children, and he thinks a married guy with small children isn't going to be able to work the long hours.

Of the four situations highlighted, only one is not an EEO violation.

One may say don’t use social networks; that way, you won’t be in that situation. I ask if we don’t want government limiting our freedoms, why should we let a corporation limit them.

[99er2049er]

03:36 PM on 09/24/2011

I agree with that statement except for the first few words which said 50 resume. Probably more like 300 resumes.

[Jacob007]

05:12 PM on 09/18/2011

Time to go back to TJ

[sixty-one]

04:52 PM on 09/18/2011

It may not be a coincidence that California has the highest number of illegals and one of the worst state economies. The cost of educating their children to speak English, even those who are born here, and incarcerating the worst of the criminals, is more than we can afford to support. You would at least expect that people who come here for "a better life" would learn English and raise any children they have here to speak English. The schools are clear evidence that is not happening...at the expense of legal residents. At the very least, banks should stop allowing illegals to send money they earn back to Mexico while they take advantage of entitlement programs through their children. The future of this state looks grim....

[mountainweb]

03:18 PM on 09/18/2011

For a state that is paying for citizens of another country to attend state colleges, bumping citizens off the list, stupidity seems to be the norm for the state democratic party. They have yet to grasp that for every business that you chase out of the state, JOBS go with that company and so do the TAXES. Only in California, does 2 + 2 = 1....

[Jacob007]

05:19 PM on 09/18/2011

No let just keep the illegals on the streets with no job skills,no general education is answer. What you need to do is learn Spanish and use these skill people in business like I have.

[Euphoria123]

03:55 PM on 09/19/2011

I bet you pay 'em a lot less than those lazy American slobs who won't learn to speak Spanish, am I right?

[99er2049er]

03:37 PM on 09/24/2011

What about the Texas model that supposedly has such great conditions, doesn't Perry support paying for children who are illegal to get state paid college tuition? Doesn't that reward and encourage illegal immigrants and take away jobs from American citizens? Your logic isn't working too well on this one.

[corwin]

05:24 PM on 09/17/2011

it's almost as if stupidity could be a Capital crime

[jgreen3947]

05:17 PM on 09/17/2011

.................As the most regulated, taxed and governed state in the country, California is quickly disintegrating into an unrecognizable oligarchy — a power structure controlled by a small number of people. In typical oligarchies, rulers are usually royalty or the wealthy, or there is military control.

Because California doesn’t have competitive elections, the 140 ruling state legislators are dependent for existence on labor unions and the ever-expanding public employee waistline.
.

[99er2049er]

03:40 PM on 09/24/2011

Remember every state will have its good times and bad times. California is the 8th largest economy on Earth, so the United States often benefits from the opportunities and wealth California brings to the nation. During the recession, California is one of the hardest hit states in the nation. Give it time and California will be bringing back the jobs again.

[justjp]

04:16 PM on 09/17/2011

Kalifornia is in the toilet. It has been run by Democrats for decades. What a shocker.

[99er2049er]

03:43 PM on 09/24/2011

And I love your republican model, especially cutting programs like the fire department right before the major fires step in, ehhhh Texas, or taking the government money not to help the citizens, but to balance the budget, ehhhh Texas? Or how about the republican model of refusing to help victims of natural disasters unless they cut programs that help the poor and middle class, ehhh republicans? California is still the 8th largest economy in the world, remember that when you want to attack this state.

And remember to thank your republican leaders Bush and Cheney for helping to create this recession and the war in Iraq in the first place. Don't have a long attention span do you?

[jgreen3947]

02:14 PM on 09/17/2011

Elect more democrats....that's the ticket.

[99er2049er]

03:43 PM on 09/24/2011

Actually that's how we created a surplus and thriving economy in the first place. Remember Clinton? Remember what happened when we put the republican Bush into office? Kinda forgot how we lost the surplus and created the deficit and the recession, didn't you?

[NamithaSF]

01:23 PM on 09/17/2011

Jerry Brown is a public employee unionist governor. If you are not in this group he could care less about your troubles. Meg Whitman wanted to shift wealth out of govt and into the private sector. You Dems just vote blindly for anyone with a (D) next to their name.

[jgreen3947]

02:15 PM on 09/17/2011

it's not blind. They get paid to do so...lol

[darkmark]

12:15 PM on 09/17/2011

and in washington obama plays contortionist for the republicans but that's not enough. the gopers want him to leave the white house and give the presidency to one of their own. the republicans feel any help in getting jobs to the citizens of the usofa is a political mistake and continue to put their hopes of destroying obama ahead of the country's needs. vote republican and help destroy the united states of america.

[corwin]

12:49 PM on 09/18/2011

If the top 1 % of Californians,in terms of IQ travel to Austin at 66 mph,how long does it take for a HP reader to hit reality ?

[darkmark]

01:51 PM on 09/18/2011

the top 1 % of California­ns,in terms of IQ , would never go to any town in texas, even austin. why would they if they wanted to hit reality? all they would find is a majority of folks that voted for rick perry.

[99er2049er]

03:45 PM on 09/24/2011

I agree with darkmark. The republican voters aren't angry that their leaders number one priority is tanking the economy and getting rid of Obama. Oh and number 2 priority, tax breaks for the wealthy. Number 3 priority, shutting down social security and medicare. Number 4 priority, all those religious items they want so bad.

[giftsthatpurr]

12:14 PM on 09/17/2011

We need our President's jobs bill now. People have suffered enough. The jobs bill is an energetic start toward getting us out of this unemployment hole. It can be read in it's entirety (55 pgs.) on-line.

[corwin]

05:23 PM on 09/17/2011

It didn't work before.Diffidently, I have to point out to you,the economic policies you esposuse are being foll0owed in some states(like,well,California ) and are co related with high unemployment, poor bond ratings and voting with their feet of the ,um Smart People. I'm certain;ly nmot mocking you,but what does it take for reality to register with people like you?

[giftsthatpurr]

05:56 PM on 09/17/2011

Corwin: "People like you" you say, - - The economic policies I espouse? What are those? Get behind a jobs plan? I live in California, and our State went down the tubes under a Republican Governor. You don't really know what economic policies I "espouse" - but I CAN tell you that the mantra "it didn't work before" is severly challenged by independent economic specialists in both parties. It may not have done enough (due to being watered down by the opposition) but it kept us out of a 2nd Great Depression. We need to act - not sit around on our tushes and throw rocks at our President's jobs bill. What is your plan? Keep giving the wealthiest their tax breaks? The ol' trickle down stuff that history has proven ACTUALLY didn't work? If you have a good plan, please educate me. But if it is still of the stuff that bombed (big time and are we suffering now!) during the 2000-2008 era, don't bother. Oh yes - & I am also curious about this "Smart People" thing of which you speak. What in the heck does that mean?

[theexperimentisfinished]

11:45 PM on 09/16/2011

at least we will be paying for illegals to attend college. and dont forget the carbon tax next year, unemployment will be even higher next year.