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California’s unemployment rate plummeted as jobs increased despite the pandemic



California regained more than a third of the country’s 2.6 million unemployed state jobs lost to the coronavirus pandemic in March and April, state officials said Friday. The leisure and hospitality sector accounted for half of the overall 96,000 jobs, after experiencing the biggest monthly loss in August, as restaurants, hotels and other hospitality businesses benefited from a reduction in state restrictions designed to spread the virus. The railroad trade also boomed, with many jobs in clothing and apparel accessories stores. All in all, seven of the 11 industry sectors improved in September, lowering the unemployment rate to 11%, the California Employment Development Department reported. The department changed its numbers in August to add another nearly 1

2,000 jobs to the previously said about 100,000 jobs added done It previously reported the unemployment rate in August to 11.4%, but on Friday changed this at 11.2%. The gains, particularly in the restaurant, hospitality, retail and construction sectors, are all good news, indicating that somehow jobs are coming back, said Michael Bernick, former director of the Department of Employment Development at state and a lawyer to Duane Morris. This is further good news that gains have been reported statewide, he said. But Bernick said the “very positive” reports are against the economic tracker of Harvard and Brown universities that have not shown improvement since August 1, and local workforce boards are reporting very little. that new acquisition. He suspects the answer is “California employers will slowly reinstate some of their former workers, but not engage with new employees.” September’s biggest loss was in government jobs, mainly as the US Census kills temporary employment. Thursday is the last day for people to fill out their census forms. However, state and local governments have been more reluctant to lay off their jobs. September marked the second consecutive month since March that the unemployment rate fell below the high water mark of 12.3% set in 2010 during the Great Recession. The nearly 16 million jobs on state payroll were nearly 1.5 million less than a year ago, before the virus hit the economy. California’s 8.5% decline from a year ago exceeds the 6.4% decline for the country as a whole. The state leisure and hospitality sector is still down to nearly 580,000 jobs from a year, so far the biggest loss of any year in any sector. The recent increase is encouraging, said Sung Won Sohn, a professor of finance and economics at Loyola Marymount University, but he noted that most of the jobs earned were in low-paying service jobs, “indicating that the economic impact of job losses is insignificant. ” However, the technology sector added 15,700 new jobs, and he predicted California would “be a big winner” as the economy, in general, continues to shift to remote employment, online shopping and digital streaming. But the pandemic is also accelerating a move to other states with lower taxes and fewer regulations, and he said the state’s economic outlook remains uncertain. The City of Los Angeles, the nation’s largest city with more than 10 million residents, continues to delay the rest of the state with a 15.1% unemployment rate, due to its outsized trust in the service and entertainment industries and a large number of small businesses owned by minorities. California, home to nearly 40 million people and the fifth largest economy in the world, lost more than 2.6 million jobs in March and April as the government ordered businesses to close and people to stay home to the spread of coronavirus is slow. The virus killed more than 16,800 Californians. The state’s unemployment system is surrounded by a long month of delays, unanswered phones and fraudulent claims, forcing the state to impose a two-week “reset” in late September. It stopped processing all new claims as it installed a new identity verification system for ID.me, a Virginia-based company. The department said it reduced the backlog by nearly a third for initial claims and nearly a quarter for ongoing claims, but officials had previously said it could be January before the backlog is removed. The state has paid $ 101 billion so far in unemployment benefits to workers affected by the pandemic. Nearly half of it is in the regular benefits provided by the state, which is now more than double what the state paid in the three worst years of the Great Recession integration.

California regained more than a third of the country’s 2.6 million nonfarm jobs of the country’s most popular coronavirus pandemic in March and April, state officials said Friday.

The leisure and hospitality sector accounted for half of the overall 96,000 jobs, after experiencing the biggest monthly loss in August, as restaurants, hotels and other hospitality businesses benefited from the reduction. state of restrictions designed to slow the spread of the virus.

Retail trade has also rebounded, boosting many jobs in clothing and apparel accessory stores.

All told, seven of the 11 industry sectors improved in September, lowering the unemployment rate to 11%, the California Employment Development Department reported.

The department changed its numbers in August to add nearly 12,000 jobs to what it previously said was about 100,000 jobs added before. It previously reported the unemployment rate in August at 11.4%, but on Friday it changed to 11.2%.

The gains, particularly in the restaurant, hospitality, retail and construction sectors, are welcome news, indicating that at least some jobs are returning, said Michael Bernick, former director of the state Department of Employment Development and a lawyer to Duane Morris. This is further good news that the gains have been reported statewide, he said.

But Bernick said the “very positive” reports are against the economic tracker of Harvard and Brown universities that have not shown improvement since Aug. 1, and local workforce boards are reporting very little. new acquisition. He suspects the answer is “California employers will slowly reinstate some of their former workers, but not engage with new employees.”

September’s biggest loss was in government jobs, mainly as the US Census closed temporary jobs. Thursday is the last day for people to fill out their census forms. However, state and local governments have been more reluctant to lay off their jobs.

September marked the second consecutive month since March as the unemployment rate dropped below the 12.3% high water mark set in 2010 during the Great Recession.

The nearly 16 million jobs on state payroll were nearly 1.5 million less than a year ago, before the virus defeated the economy. California’s 8.5% decline from a year ago exceeds the 6.4% decline for the country as a whole. The state leisure and hospitality sector still dropped to nearly 580,000 jobs from a year ago, by far the largest year-on-year loss of any sector.

The recent increase is encouraging, said Sung Won Sohn, a professor of finance and economics at Loyola Marymount University, but he noted that most of the jobs available are in low-paying service jobs, “indicating that the economic impact of job losses is not as great. “

However, the technology sector added 15,700 new jobs, and he predicted California “would be a big winner” as the economy, in general, continued to shift to remote employment, online shopping and digital streaming. But the pandemic is also accelerating the transition to other states with lower taxes and fewer regulations, and he said the state’s economic outlook remains uncertain.

Los Angeles County, the nation’s largest population with more than 10 million residents, continues to lag the rest of the state with a 15.1% unemployment rate, due to outsized reliance on the service industry and entertainment and a large number of small minority owned businesses

California, home to nearly 40 million people and the fifth largest economy in the world, lost more than 2.6 million jobs in March and April as the government ordered businesses to close and people to stay home to the spread of coronavirus is slow. The virus killed more than 16,800 Californians.

The state’s unemployment system is surrounded by a long month of delays, unanswered phones and fraudulent claims, forcing the state to impose a two-week “reset” in late September. It stopped processing all new claims as it installed a new identity verification system for ID.me, a Virginia-based company.

The department said that backlog had been reduced by almost a third for initial claims and nearly a quarter for ongoing claims, but officials had previously said it could be January before the backlog was removed.

The state has paid $ 101 billion so far in unemployment benefits to workers affected by the pandemic. Nearly half of it is in the regular benefits provided by the state, which is now more than double what the state paid in the three worst years of the Great Recession integration.


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