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State unemployment rate rises to record height
Governor stresses need to 'rebuild the Golden State'

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California's unemployment rate rose to 11.9 percent in July, the highest rate in modern record-keeping history, according to the state's Employment Development Department.

A survey of households and businesses shows that the state's unemployment rate rose from 11.6 percent in June, and from 7.3 percent in July 2008.

The 11.9 percent figure is the highest rate since the department started their current survey methods in 1976, according to spokesman Kevin Callori. The unemployment rate is derived from a federal survey of 5,500 households throughout the state.

Using different calculations, the department estimated that California had unemployment rates of 11.7 percent in 1941, 14.7 percent in October 1940, and jobless rates of about 25 percent during the Great Depression, according to Callori.

The number of unemployed people in the state was just under 2.2 million, up by 33,000 over the month and up by 840,000 compared with July 2008.

Only one industry, educational and health services, has gained jobs over the past year, adding 17,900 positions since July 2008.

Among the Bay Area's nine counties, Santa Clara County had the highest unemployment rate with 11.7 percent. Marin County had the lowest rate, not only in the Bay Area but in the entire state, at 8.2 percent.

"These numbers indicate that we must do everything possible to get California moving forward again," Gov. Arnold Schwarzenegger said in a prepared statement Friday.

"We must fix what is broken in this state -- whether it is our water infrastructure, our prisons and pension systems or updating our tax structure -- these are the critical issues that need to be addressed to rebuild the Golden State," Schwarzenegger said.

The national unemployment rate decreased in July, falling from 9.5 to 9.4 percent.


Comments

Posted by YSK, a resident of the Old Palo Alto neighborhood, on Aug 21, 2009 at 5:08 pm

That sucks. Tell me about it. I've been trying for months. Finally landed a job, only to have them mess with my head and as I found out, that of many others for the same position. This week I suffered the biggest blow of all. I was hired for a job, showed up for the formality of paperwork at HQ, borrowed $20 bucks to get there, only to be told no, there's no job for you. Some Employers are taking advantage of the desperation of the applicants, and I think it's disgusting. Came to find out a man came in AFTER me and got the job because he could lift more weight. I was already hired. I wish I could sue. Tired of being jerked about.


Posted by Perspective, a resident of the Midtown neighborhood, on Aug 21, 2009 at 5:41 pm

And to think, this is not bad by European standards!! Are we European enough yet?


Posted by Anna, a resident of the Downtown North neighborhood, on Aug 21, 2009 at 6:07 pm

The current French unemployment rate is 9.3%. Web Link I'd say were plenty European enough here in CA. With Obama's policies apparently directed to making the whole country more "European" in nature, can the rest of the country be far behind?


Posted by Perspective, a resident of the Midtown neighborhood, on Aug 21, 2009 at 6:19 pm

IF we compare apples to apples, the French unemployment is worse than their reported 9.4% because..the vast majority of French who are working "full-time" are working full-time by THEIR standard, which is not 40/week, but 35/week. Their GDP is equal to our poorest 4 states.

It would be as if we suddenly redefined our unemployment rate to reflect anyone working more than 20 hours per week, for example..and our unemployment rate would plummet!

So, in simply comparing California to France, i would say we are fairly equal in most ways; economics, atheism, values, work ethic, etc.

I am really happy my family emigrated from there to here and was able to benefit from the tremendous opportunities we had here in the USA. I hope our kids will be able to have the same growth and sense of opportunity we did, and if we can throw these guys out and get in folks who understand what motivates creative new businesses, maybe we can.


Posted by Perspective, a resident of the Midtown neighborhood, on Aug 21, 2009 at 6:29 pm

Noodling around, found this about France versus America; supporting why I am so happy to be here, and not in France. This is related to the unemmployment discussion, PA Online, and specifically speaks of unemployment in France compared to here, so please don't delete.

Web Link


Posted by facts, a resident of the Adobe-Meadows neighborhood, on Aug 21, 2009 at 6:46 pm

Here is a link that compares unemployment rates between the US and a variety of European countries, including France.

www.cepr.net/documents/publications/US-EU-UR-2009-05.pdf

One should be careful comparing unemployment rates between countries. For example, the US counts only people who have been unemployed for 6 months or less. In Europe, they tend to include longer term unemployed people, which does inflate the rate compared to the US.


Posted by Oh No, a resident of the Fairmeadow neighborhood, on Aug 21, 2009 at 9:15 pm

Hey it is just going to get worse.

Here is the county by county list. Web Link

How's that Obama thing working out for ya?

Just wait until the news about the second round of foreclosures. (you know these folks that have lost their jobs and had a good mortgage but now can not pay.)

And BO release the news or fed-debt will increase another 2 -TRILLION.


Posted by The Crash, a resident of the Midtown neighborhood, on Aug 22, 2009 at 1:17 am

I couldn't agree with you more, Oh No.

I believe we are in for a ride like no other, and possibly crash landing by October 2009.


Posted by Perspective, a resident of the Midtown neighborhood, on Aug 22, 2009 at 7:08 am

Facts, where do you get your "only count 6 months or less" unemployment statement? Last I checked, it was anyone who applied for unemployment benefits, or was on unemployment benefits, or was actively looking for work. Latest I know, all the above lasts about 2 years before one is dropped from the "unemployment" numbers rolls.

There are issues with our unemployment numbers, specifically that many of us become "unemployed", but then become "contractors" and therefore are no longer unemployed, making just as much as we did etc...but are still counted as "unemployed" because we are looking for more stable work than contract work. We, actually all countries, have many accounting issues along this line, but the best indicator is still, probably, how many people are on unemployment benefits. Comparing THOSE numbers from country to country would be very interesting indeed, esp since France has many people who have chosen "permanent unemployment" over working since the 2 pay out almost the same thing.


Posted by Perspective, a resident of the Midtown neighborhood, on Aug 22, 2009 at 7:13 am

Oh No: Agree. We are not at the end of the unemployment drag. It will continue to rise. I am hoping that once it is clear that we are at the worst of government takeover mentality, ( I think...sure looks like America is waking up and saying "enough" and the Congress is starting to look nervously at their reelection chances) our entrepeneur-risk takers will dare to dip their toes in the water again and begin growing some employment opportunities.

What is the number? Some MBA grad will have to correct me on this if wrong, but isn't it something like 90% of all new employment since WW2 has NOT come from Fortune 500 companies, but from new, small businesses? Those are the people we have driven underground, and the ones we need to nourish back to life.


Posted by Perspective, a resident of the Midtown neighborhood, on Aug 22, 2009 at 7:17 am

Sorry, should have made it clear,...over 90% of PRIVATE employment growth. I shudder to think about what percent increase in Federal government employees we have seen in the last 60 years. Especially since the only growth right now in the USA is in..you guessed it, the great DC!! ( Anyone wanna guess how long before we shrink it down?? How about NEVER?)

If our own STATE continued to grow in State govt employees last year, as we are losing taxpayers by the hundreds of thousands, I can only imagine how much worse it is federally.

So, anyone know what percent increase we have had in the number of Fed Government FTEs in the last 60 years?


Posted by chris, a resident of the University South neighborhood, on Aug 22, 2009 at 2:45 pm

Perspective, you are counted as unemployed only if you don't have work and are actively looking for it.

You are not counted as unemployed if you have part-time work or if you have stopped looking for work.

The unemployment rate is around 16-17% if you count people who are too discouraged to look for work and people who are working part-time because they cannot find full-time work.


Posted by chris, a resident of the University South neighborhood, on Aug 22, 2009 at 2:52 pm

Oh No, do you have some constructive suggestions or are you the type of person whose main goal in life is to trash Obama?


Posted by Perspective, a resident of the Midtown neighborhood, on Aug 23, 2009 at 8:05 am

Web Link

The rich are getting poorer, ...so how is that "soak the rich" working out for you, America? Happy with all the lost jobs and declining tax income to the State and Fed coffers causing ever rising deficits as we need to spend more for social welfare and are getting less from "the rich"????

Teach your children what class envy does, please, and save them this grief.


Posted by Pete, a resident of the Downtown North neighborhood, on Aug 27, 2009 at 2:36 am

California Unemployment Trends - June 2009

California Unemployment Situation in Heat Map form:

here is a map of California Unemployment in June 2009 (BLS data)

Web Link

versus California Unemployment Levels 1 year ago

Web Link


Posted by Jeff, a resident of another community, on Sep 5, 2009 at 4:58 pm

Blaming Obama? Come on, All you Bushites are more to blame and who got us into another NO-WIN war? Ya, look in the mirror and stop laying blame on Obama.


Posted by reality, a resident of the Adobe-Meadows neighborhood, on Sep 6, 2009 at 8:02 am

8 months, plummeting....full dem congress control since 2006. nothing could happen without full dem approval. full dem white house control since Jan 20, lame duck since Nov.

ummmm......the economy would be better now with better policies, and some degree of trust and hope in this admin. clearly there is no trust, no hope...those who create jobs are hunkering down.

get used to it. this is "obama's" baby now. 9.7% unemployement nationally and climbing. we are going to reach Carter levels much much faster than Carter/dem congress did.

1 year and 2 months until congressional elections..3 years 2 months until pres elections. once congress starts shifting back to something we can count on, once we get rid of reid, frank, dodd, pelose( though the fools in massachussetts will keep re-electing frank and we will keep re-electing pelosi, I am sure), once we dismantle the bad attitude and policies at the congressional level, we can start getting some hope back.


Posted by reality, a resident of the Adobe-Meadows neighborhood, on Sep 6, 2009 at 8:05 am

don't misunderstand. half the repubs are to blame, too..the rockefeller repubs led by specter, collins, mccain, and a few others. without these folks who were and are further to the left than JFK was, we would have been able to slow this train wreck down enough to avert it. it is an ideology of "i know better, I am in the government and wise,..I will take your money and use it more wisely than you can". THAT is what has to go.


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