Thread: California's jobless rate up sharply

California's jobless rate up sharply

(01-1 15:48 PST SAN FRANCISCO -- California's employment market took a sharp turn for the worse in December, the strongest sign to date that the state's economy might be falling into recession.

The Bay Area fared much better than the state as a whole, but local jobless rates also edged up slightly during the month.

The state's unemployment rate catapulted to a seasonally adjusted 6.1 percent, half a percentage point higher than the November level, the California Employment Development Department reported Friday morning.

"That's a big jump," said former department Director Michael Bernick.

In December 2006, the state jobless rate was 4.8 percent.

The state unemployment rate last month was well above the 5 percent posted for the United States as a whole and tied for fifth highest in the nation, trailing only Michigan, Mississippi, South Carolina and Alaska.

In response to the report, Gov. Arnold Schwarzenegger said he would work with the Legislature to release $29 billion in funds from 2006 infrastructure bonds to speed up construction projects. He also ordered the Employment Development Department to extend hours at state job assistance centers.

The Bay Area dodged most of the pain. The San Francisco metropolitan area unemployment rate was 4.2 percent in December, the Oakland area rate 5 percent, and the San Jose area rate 5.1 percent - all increases of 0.1 percentage point from the previous month.

The unemployment rate calculations were based on a survey of households, which showed the number of jobless workers in California rising 88,000 to 1,126,000 in December.

A separate survey of employers showed total California jobs outside the farm sector growing by 15,500 during the month. The apparent contradiction of growing payrolls and growing unemployment might have been due in part to the entry of 55,000 workers into the labor force, which consists of people who are employed or looking for work.

"The large jump in the number of unemployed residents did not come from job losses, but rather from more people entering the labor force than could find jobs," Stephen Levy, director of the Center for the Continuing Study of the California Economy, concluded in a written analysis.

Statewide, construction shed 6,200 jobs and financial services 4,200 jobs during the month, evidence that the housing slump is continuing to take a toll on employment. Sectors such as education, health and professional and business services added jobs.

For the full year 2007, payrolls in California expanded just 0.5 percent, the slowest growth since 2003, according to the Public Policy Institute of California.

"The housing market deceleration and the slowing of the overall economy is occurring faster than we thought," Levy said. "We're right on the edge of a recession."

In 2007, California construction and finance payrolls dropped 4 percent and 2.5 percent, respectively. Most of those losses were concentrated in Southern California, where the housing downturn was most severe.

In the Bay Area, the job market has held fairly steady despite some losses in housing-related sectors. The San Francisco metropolitan area, which includes Marin and San Mateo counties, passed the 1 million-job mark in December for the first time since the dot-com crash in 2001.

The area's eastern fringe, where housing construction was hottest and home prices have fallen hardest, has suffered most. Solano County, for example, had virtually no change in payrolls and saw its jobless rate jump 0.4 percentage point to 5.8 percent in December as housing sector woes spread. But construction employment isn't collapsing, because of a range of commercial and public works projects.

"Luckily we have enough industrial work to keep the bottom from completely falling out," said Lou Franchimon, business manager of Napa-Solano Building Trades Council, referring to refinery renovations, hospital construction and other projects in his area.

In the inner Bay Area, the job market is neither too hot nor too cold. But it hasn't been growing rapidly enough to keep unemployment rates from rising.

"The Bay Area didn't lose any jobs in 2007, but the growth of the labor force outpaced job growth," Levy said.

Mark Unger, president of Diversified Personnel, an Oakland staffing company, said he's seen only a slight slowdown so far.

The area job market "certainly is not growing at the brisk pace it was in the middle of last year, but business on the direct hire side is still good," he said. In the East Bay, a significant part of the demand for workers is coming from startup businesses funded by venture capital, "everything from biotech to software to green industry," he said.

For their part, many of those searching for work are fretting about reports that the economy is skidding.

Joe Ehrlich, 51, lost his customer service job at Mountain Hardwear, a Richmond maker of camping and backpacking gear, on Tuesday. He said he still sees plenty of job ads on Craigslist but worries about conditions in his industry.

"Retailers are in big trouble. I've been watching what's been happening with orders from big stores," said Ehrlich, who lives in Richmond. "All signs point to an economic downturn."

E-mail Sam Zuckerman at szuckerman@sfchronicle.com.

http://www.sfgate.com/cgi-bin/article.c ... e=business

Comments(34)California's jobless rate up sharply
Sam Zuckerman, Chronicle Staff Writer

concorde99 wrote:
Hello Typo: ... number of jobless workers in California rising 88,000 to 1,126,000 in December .... WOW

Posted 1/18/2008 11:34:25 AM
Recommend (5)Report Abusefalynn wrote:
Half a percentage point equals recession? Are these stats compiled before or after the illegal alients work the harvest?

Posted 1/18/2008 11:44:38 AM
Recommend (0)Report AbuseNowVoyager wrote:
I am always amused at the stats on unemployment. They use the registration count to say who is on or off and tell us that unemployment's up because there are more people enrolled. The count is always ridiculous because they fail to count the people whose benefits have run out. They are not working, they are simply ineligible to collect benefits. The situation is more dire than they report. But it doesn't seem to affect the malls. The parking lots are always crowded and I wonder... who is at work? Retail therapy is not the way people, LOL.

Posted 1/18/2008 12:01:31 PM
Recommend (2Report Abuserejco100 wrote:
I Just hired three new employees for our new building and these jobs came with killer apartments. My employees are doing great! Two employees are going to retire to Florida and I will be hiring two homeless veterans for these available management positions. Life is good outside of the retail dead-end jobs! People quit spending your hard earned dollars on that cheap Chinese jjunk! Just stop! And for heaven's sake WALK instead of driving.

Posted 1/18/2008 12:21:41 PM
Recommend (15)Report Abusestuds_lonigan wrote:
Rents are up, food prices are up, gas is nearing $4...is it any coincidence that the economy is tanking in an election year?

Posted 1/18/2008 12:24:41 PM
Recommend (9)Report Abuserejco100 wrote:
We have not raised rents in 8 years and thus never have any vacancies. I don't understand when they do raise rents the buildings (not mine) are still dumps and falling apart. I at one time wanted to donate to the TNDC but they let poor people live in filth and despair while raking in millions for their top dogs staff and contractors who do not live in the same conditions as their tenants

Posted 1/18/2008 12:32:27 PM
Recommend (Report Abuseguillermo wrote:
And don't forget that this unemployment rate of 6.1% doesn't even include a lot of us in the underground employment force. We may need a bigger handout than we think.

Posted 1/18/2008 12:48:43 PM
Recommend (3)Report Abusejustintimes wrote:
Well, it only took 6 years for Shrub and his criminal cronies to tank the economy and send us in a death spiral. What a bunch of fundamentalist creeps.

Posted 1/18/2008 1:00:12 PM
Recommend (Report Abusejbunniii wrote:
Look on the bright side - at least one economic indicator is on the rise!

Posted 1/18/2008 1:16:57 PM
Recommend (4)Report AbuseDarkFarmer wrote:
I'll defend the TNDC, I used to be one of those contractors and they do their best to keep the hotels clean, buying new beds all the time as fast as their occupants destroy them. I believe in greater tenant ownership to proceed hand in hand with greater tenant rights. My landlord sucks, and i am more than willing to do a little work around the place to fix it up but they thwart me at every turn with their utter lack of regard for anything but keeping checks rolling in and hoping we leave b/c were below market.

Posted 1/18/2008 1:21:03 PM
Recommend (1)Report Abuse

Comments continued

California's jobless rate up sharply
Sam Zuckerman, Chronicle Staff Writer

California's employment market took a sharp turn for the worse in December, the strongest sign to date that the state's economy might be falling into recession. The Bay Area fared much better than the state as a whole,...

Add Your Comment Read Full Story

Mackey_Berkeley wrote:
I was laid-off from my 10-year, Federal government position two weeks ago. Doesn't Zuckerman's "jobless workers" term seem rather redundent?

Posted 1/18/2008 1:23:09 PM
Recommend (1)Report Abusebush_wacked_007 wrote:
Why do I have a feeling this is going to be FAR worse for the Bay Area than the dot.com bust? Real estate dipped slightly, but there wasn't this mortgage mess. So you get to lose your job, your house and on top of everything else be in the hole with zero equity or credit. Tsunami anyone???

Posted 1/18/2008 1:50:01 PM
Recommend (Report Abuseherbgreen wrote:
I knew that. All you have to do is drive down Caesar Chavez, and see the illegal multitudes swarm. So as people cut back on Mani-Pedis, car washes, eating out and home improvement, WHAT ARE WE GOING TO DO WITH ALL THE ILLEGALS CLOGGING THE STREET AND OUR PUBLIC SERVICES. Oh sure we needed them when unemployment was at 3%. But as we are finding out, consumerism is an artificial inflator, while it only makes the Chinese and Arabs rich.Get used to being a "Has Been" America. ASK YOURSELF THIS, DO YOU THINK WAGES FOR THE AVERAGE AMERICAN IS GOING TO RISE WITH HIGHER UNEMPLOYMENT? FOLKS, HERE COMES ANOTHER ECONOMIC DOWNSIDE OF ILLEGAL IMMIGRATION.

Posted 1/18/2008 1:50:26 PM
Recommend (1Report Abusepoodlepup2 wrote:
I sure hope that the super-rich 5% people can drink lots and lots of Cafe lattes. Because we will all have barista jobs

Posted 1/18/2008 1:53:16 PM
Recommend (5)Report Abusepoodlepup2 wrote:
Oh herbgreen, you can't POSSIBLY think that this is about illegals? Jobs lost to illegals are just a wad of spit in a salty sea compared to all the jobs that have been outsourced overseas because the corporations can't bear the thought of paying employees living wages. At LEAST our illegals spend some of their money here! SHEESH!

Posted 1/18/2008 1:59:36 PM
Recommend (Report Abuseherbgreen wrote:
Poodle PuP: Yea, overseas delivery of our jobs like dominos pizza is only part of the problem. But illegal immigration has its place, but not to the tune of 15-20 million nationwide, and at least 10 million here. I would love to go overseas and get one of those jobs, but foreign countries don't let Americans work abroad freely, like our govt. alllows others to do. Quid Pro Quo. Plus California has more than its fair share of illegals. It only became a hot topic when Daisy Duke in South Carolina lost her job at the mini mart. Or when "Barrios" popped up overnight in Minnesota. But I feel your sacarasm.

Posted 1/18/2008 2:05:56 PM
Recommend (4)Report Abusesonof_jf wrote:
GOP = fascist treasonous organization & the enemy of America, freedom, and the U.S. Constitution.

Posted 1/18/2008 2:14:33 PM
Recommend (5)Report Abusesangell3 wrote:
Bay Area seems to be doing very well but since California is one state the problems in the rest of the state will arrive here sooner or later. The state governnent is broke and so will be many local governnents as the real estate and stock market drops erode tax receipts. Governnent layoffs will be inevitable. I think Wells Fargo, Bank America etc have not yet come clean about the number of non performing loans they are holding too so the financial services sector may have some lay offs coming too.

Posted 1/18/2008 3:36:08 PM
Recommend (5)Report Abuselazybones8 wrote:
The unemployment numbers never reflect the folks who have exhasted their UI benefits. I always felt that the way this statistic is reported is fundementally flawed.

Posted 1/18/2008 4:11:18 PM
Recommend (7)Report Abusehalloween_jack wrote:
I've been in San Francisco since Sept. 2006 and I haven't been able to successfully land a full time job. I have good education and experience but I keep sending out my resume and either I get no response or very few interviews that have gone nowhere. In the time I've been here, I've met quite a number of people in my position, so I'm definitely not alone. With the exception of the occasional temp job, all I can do is continue my job search and hope I don't have to settle for a retail job. I've done that before, and it hurt me professionally big time. I can't risk that again.

California's jobless rate up sharply
Sam Zuckerman, Chronicle Staff Writer

California's employment market took a sharp turn for the worse in December, the strongest sign to date that the state's economy might be falling into recession. The Bay Area fared much better than the state as a whole,...

Add Your Comment Read Full Story

This comment has been removed by SFGate.kahn wrote:
this would also means crimes increase and security decrease, adding the gun explosion! i just hope a civilized society would not go into such a bad crisis !

Posted 1/18/2008 5:45:43 PM
Recommend (1)Report Abuseflatbedbill wrote:
PoodlePup: Sure, they spend "some" of their money here. Mexican Beer, Mexican Soda, Phone cards to Mexico and points south, and ALOT on products MADE IN MEXICO. They also send -- collectively -- 40 BILLION UNTAXED US DOLLARS back to their "Home Countries." They don't pay into the registration fund because they don't register their vehicles because an overwhelming percentage don't have a drivers license. I can substantiate this because I drive a flatbed tow truck part time (I'm retired, and I do so because I enjoy it) and several times a day we are called by the CHP and various Marin County law eforcement agencies to tow Mexican Hoopties where the driver hasn't got a license, and the registration is way expired. They just empty the car out, and by dinner time they've laid a coupla hundred "C" notes down and bought another piece of krap and are back on the road again illegally. I blame them AND our politicians a la Boxer, Ferinstein, et al for this fiscal mess in this state.

Posted 1/18/2008 5:46:58 PM
Recommend (6)Report AbuseThis comment has been removed by SFGate.randy13612 wrote:
"It only became a hot topic when Daisy Duke in South Carolina lost her job at the mini mart. Or when "Barrios" popped up overnight in Minnesota." Like the oligarchs give a flying you know what about Daisy Duke and little Mexicos in Minnesota. Get real d.a.

Posted 1/18/2008 6:32:38 PM
Recommend (1)Report Abusesurfcity wrote:
My heart goes out to anyone layed off or unemployed at this point in time. I was layed off in '93 luckly called back after 10 months. I worked three years without a day off to save as much money as possible for fear of that happining again. That was before outsourcing........

Posted 1/18/2008 8:39:50 PM
Recommend (1)Report Abusetimberkeley wrote:
"GOP = fascist treasonous organization & the enemy of America, freedom, and the U.S. Constitution" good thing we had Woodrow Wilson who ultimately sold us to IRS and the Federal Reserve, have the Barack Obama who wants to nuke Iran and voted for the PATRIOT Act, have the Demcratic-run Congress that continues to fund the Iraq War, and Charles Rangel who wants to reinstate the draft. Woo-hoo!

Posted 1/18/2008 10:19:19 PM
Recommend (1)Report Abusetimberkeley wrote:
"this would also means crimes increase and security decrease, adding the gun explosion! i just hope a civilized society would not go into such a bad crisis !" good thing we dont have the guns to protect ourselves from those who illegaly do!!! Yaaaay!!!!

Posted 1/18/2008 10:20:54 PM
Recommend (1)Report Abusearchie_leach wrote:
rightwing reactionary !@#-FOR-BRAINS (isn't the terms "rightwing reactionary" and "!@#$-for-brains redundant"?) "timberkeley" somehow poked out with two fingers from the key board ALL THE WHILE DROOLING ALL OVER IT: "'GOP = fascist treasonous organization & the enemy of America, freedom, and the U.S. Constitution" good thing we had Woodrow Wilson who ultimately sold us to IRS and the Federal Reserve, have the Barack Obama who wants to nuke Iran and voted for the PATRIOT Act, have the Demcratic-run Congress that continues to fund the Iraq War, and Charles Rangel who wants to reinstate the draft. Woo-hoo!'" yes drooling rightwing reactionary &^%%-FOR-BRAINS "timberkeley": ALL 'liberals/democrats/leftists/communists/satanists' are bad/going to he!l while ALL 'conservatives/repubicans/rightwing @#$!OLES/godlovesYOUists are going to heaven....

Posted 1/19/2008 11:08:13 AM
Recommend (0)Report Abusebrittanicus wrote:
California communities on a course for an economic catastrophe! SACRAMENTO -- Gov. Arnold Schwarzenegger is expected next month to gear-up immediately for major cuts in state services, which includes a plan to take back $1.4 billion budgeted for education this year and a proposal to slash the prison population by releasing tens of thousands of low- risk inmates. The two strategies are among a wide spectrum of spending reductions The governor will propose an outline to address a projected $14.5-billion state budget gap. On Friday, the Republican announced that he would declare a fiscal emergency Jan. 10, when he unveils his next budget. In hosting this nations largest population of illegal immigrants, California masses huge cost to provide basic human services for this fast growing, low-income, poorly educated segment of the state. A new study from the Federation for American Immigration Reform (FAIR) investigated the costs of education, health care and impris

California's jobless rate up sharply
Sam Zuckerman, Chronicle Staff Writer

California's employment market took a sharp turn for the worse in December, the strongest sign to date that the state's economy might be falling into recession. The Bay Area fared much better than the state as a whole,...

Add Your Comment Read Full Story

brittanicus wrote:
A new study from the Federation for American Immigration Reform (FAIR) investigated the costs of education, health care and imprisonment of illegal aliens, and concludes that the costs to Californians is $10.5 billion per year. and rising. Among the key finding of the report are that California is already struggling K-12 education system. It spends approximately $7.7 billion a year to educate the children of illegal aliens who now constitute 15 percent of the student body. Another $1.4 billion of the taxpayers' money goes toward providing health care to illegal aliens and their families, the same amount that is spent incarcerating illegal aliens criminals. Taxpayers have to supplement thousands of rogue businesses who pay low wages and offer no healthcare or any other benefits. Hence taxpayers are forced by Federal and state law to support the California population of foreign nationals with their large families, who need subsidised shelter, health-care and other government handouts the

Posted 1/19/2008 1:53:38 PM
Recommend (0)Report Abusebrittanicus wrote:
Taxpayers must realize their taxes are corporate welfare, because the contractor or company owner gets the profit from hiring illegal workers and walks away quite happily without any further obligations. When injured a illegal foreign national is more than likely to be dropped-off on the steps of a hospital emergency, where you the citizen pay the huge expense for surgery or any other longtime hospitalization? "The Golden state's addiction to 'cheap' illegal slave labor is bankrupting the state coffers and posing enormous pressure on the state's shrinking middle class tax base," stated Dan Stein, President of FAIR. "Most Californians, who have seen their taxes increase while public services deteriorate, already know the impact that mass illegal immigration is having on their communities, but even they may be shocked when they learn just how much of a drain illegal immigration has become." The annual cost to taxpayers is about $22 billion a year according to Center for Immigration

Posted 1/19/2008 1:57:49 PM
Recommend (0)Report Abusebrittanicus wrote:
The annual cost to taxpayers is about $22 billion a year according to Center for Immigration Studies and the tax burden will grow -- because 15 million more immigrants are set to arrive by year 2017 according to their latest research. More than 10 million immigrants have arrived since year 2000; it is estimated that nearly 6 million are illegal. All told, the group of immigrants now account for 38 million at the moment according to the White House's own census bureau. Remember this when you vote on super Tuesday? It's your tax dollars officials are spending and allowing California to become a magnet to millions of illegal recipients, while citizens suffering the consequences of a "Sanctuary State" mentality. Remember when you vote on "Super Tuesday" that your vote portends the future of your children, your job, your language and the Constitution? This free-movement of illegal, cheap labor, is the underhand agenda of the globalist open-border, terrible free trade. This occurren

Posted 1/19/2008 1:58:38 PM
Recommend (1)Report Abusebrittanicus wrote:
This occurrence has already taken hold in the European Union, which is causing untold misery in countries like Britain. Most Democrats have voted for AMNESTY, whereas only two Presidential candidates have signed a pledge to stop any path to citizenship for the estimated 12 to 20 million illegal immigrants. For unsuppressed news go to NUMBERSUSA and you decide the future of California and our great nation!

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