Despite a continued decrease in inflation last month, there was a rise in unemployment, particularly in California, where a consistent job growth experienced a slight yet abrupt decline. The current unemployment rate in the U.S. stands at a notably low 4.1%.
“The overall rate would have shown greater strength were it not for the impacts of Hurricane Helene, Hurricane Milton, and the Boeing strike,” stated employment lawyer and former EDD Director Michael Bernick.
Regrettably, the rate for Golden State has increased.
“California’s increase reaches 5.4%.” That’s one of the top figures, if not the very top. It varies greatly from the overall rate of 4.1% across the country. Mr. Bernick remarked, “One significant point to note today is that the gap between our figures and the national rate continues to widen.”
Interestingly, October marked one of the rare instances in the last four years where California experienced a decline in payroll jobs.
“To put it differently, our monthly job growth has been around 22,000 positions over the last year.” “This month, we indeed reported a decline of 5,500 jobs,” stated Bernick.
Consistent job growth in the healthcare industry helps maintain California’s employment rate at a more favorable level.
There is a significant issue at hand, as the surge in unemployment claims, both new and ongoing, is disproportionately higher than expected when compared to national trends.
“California accounts for approximately 12.5% of the workforce in the country.” Last week, we recorded more than 21% of all new claims and over 21% of all ongoing unemployment claims,” stated the former EDD Director. “Despite the significant decrease in inflation, the lingering impact from the pandemic continues to strain finances.” Since the pandemic, there has been a significant increase in prices, exceeding 22%.
This is exactly why the top economic rebound globally doesn’t resonate with American consumers and voters.