Bankruptcy

High California Unemployment a sign of Economic Recovery?

By ckramer

Last week, the LA Times released an article pronouncing:

California unemployment hits post-World War II high. The rate jumped unexpectedly in July to 11.9% even as the national rate declined.

The purpose for this, it seems, is to inform the public of the rampant unemployment problem in the country?s largest state.

However, as in life, there is always a ?yin? to the ?yang?.

High Unemployment Number, But is This the End of the Recession?

Explaining the positive side to this grossly negative numerical fright is Jerry Nickelsburg, a senior economist with the UCLA Anderson forecast:

Historically, unemployment rates continue to rise after the end of the recession. . .we’re not creating enough jobs, we’re losing jobs, and so that makes the unemployment rise. The importance of this is the reference to the ?end of the recession?.

The Pain of Unemployment

If you ask the 35,800 California workers who lost their jobs last month (which is more than any other state) or the more than 760,000 residents who have lost their jobs in the last year— the recession is far from over.

California has staggering average home prices, the nation?s highest cost-per-gallon of gas on average and is also notorious for their ?sunshine taxes?. This only adds salt to the wounds of the unemployed.

California Losing Its Allure?

For so long California has been the Mecca for those searching for fame and fortune.
This began with the gold rush of 1849 and continued with the boom of the railroad, the rise of Hollywood fortunes and the blossoming of Silicon Valley.

The 16% unemployment rate won?t concave the mystique of California, but it?s worth noting that California is tied with Oregon for the fourth-highest unemployment rate in the nation, behind Michigan, Rhode Island and Nevada.

Some experts say the state is shedding jobs at a faster rate than the rest of the nation because of the prior dependence California had on their building/construction industry.

Whatever the reason, there are still large groups of unemployed workers in search of work.

We may see more Californians filing bankruptcy if this unemployment continues to rise.

Full post as published by The Bankruptcy Blog on September 04, 2009 (boomark / email).