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Sep 16 2011

California Unemployment Rate Increases to 12.1% As Employers Cut Jobs

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California Unemployment Rate by County as of July 2011

No economic recovery in California, that is for sure.
Unsettled by signs that the recovery is stumbling, California employers in August cut jobs for the second month in a row, helping push the unemployment rate to 12.1% from 12% in July.

Payrolls fell by 8,400 positions last month, according to figures released Friday by the Employment Development Department.

The losses are worrying to economists, who say turmoil at the state and national levels could continue through the fall. The country added no jobs in August. The national unemployment rate stands at 9.1%.

“Businesses are very reluctant to hire people,” said Sung Won Sohn, an economist at Cal State Channel Islands. “They are adopting a wait-and-see attitude.”

California has the second-highest unemployment rate in the nation after Nevada. Nevada’s unemployment rate jumped to 13.4% in August, from a revised 12.9% in July.

There are 2.2 million people out of work in California and many have been without a job for more than a year.

California’s job market has been up and down this year. The state has added 98,500 positions through the first eight months of 2011. But key industries such as construction continue to struggle. That sector lost the most jobs in California last month, 7,200 positions.

Southern California home prices fell 1.4% last month from July, and foreclosure proceedings accelerated 55% in the state last month.

I have never seen the economy so poor in California. There needs to be a concerted effort by the federal government to spur economic growth. But, there has been little except for Crony Capitalism and bloated, unnecessary stimulus spending.

Even the California Field Poll echoed frustration with President Obama and we all know how blue California is.

If the economy does not turn around soon, voters will be voting all of the incumbents out of office in November 2012, including the President.

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