California's unemployment rate reached a new high of 12.6 per cent in March, bolstering fears that a weak labour market will remain a drag on the state's economy at least through the end of the year. The unemployment rate in February was 12.5 per cent.
Despite hints of an econ-omic turnaround, some of the 2.3 million unemployed in the state found March the toughest month yet. That's because tens of thousands have been out of work so long that their unemployment cheques will be cut off within the next few weeks. They're not helped by the $18-billion measure signed on Thursday by President Barack Obama 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 by this weekend. "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.
Increased
California payrolls increased by 4,200 non-farm jobs in March, primarily in the sectors of manufacturing, educational and health services, and leisure and hospitality. Still, the unemployment rate rose as many who had been discouraged by the job hunt resumed their search. The construction, information, government and financial activities sectors continued to shed jobs, the EDD said. California has lost more than 1.3 million jobs since December 2007.
The unemployment rate in Los Angeles County remained steady at 12.4 per cent in March, as employers added 9,900 jobs, led by the leisure and hospitality sector with 3,700 jobs. Orange County's unemployment rate increased to 10.1 per cent, from a revised 9.8 per cent in February, although employers in that county added 7,300 jobs.
The Inland Empire, which includes Riverside and San Bernardino counties, gained 5,700 jobs but still saw its unemployment rate rise to 15 per cent, up from a revised 14.8 per cent in February. Typically, unemployment benefits in California last 26 weeks. But in the last two years, four sets of federal extensions have added 53 weeks. Another programme, 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, the EDD's Levy said. But 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.
- 5.5 applicants on an average for every job opening
- 10.1% is the unemployment rate for Orange County
- 4,200 rise in California payrolls for non-farm jobs
