California jobless rate climbs to 10.5 percent
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Back then, unemployment remained above 10 percent for a year and briefly hit 11 percent. This time Levy said unemployment probably will break 11 percent and stay there for months, until the housing market hits bottom and starts to recover, healing the state’s biggest economic wound.
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Metropolitan San Francisco, consisting of San Francisco, San Mateo and Marin counties, had a jobless rate of 7.8 percent in February, better than the state or the nation.
Official unemployment rates above 10% are a huge problem. And the impacts of such high unemployment rates grow over time, so staying above that rate for long is a huge problem. And the odds favor that happening in California and such a result for the USA overall is high. It likely true that the falling housing prices will stop before the economy really starts regaining the ground it has lost recently. But the real key, in my opinion, will be when job losses stop and the economy grows jobs. If we can do that by early 2010 I think we will be lucky.
Look for an improving unemployment rate, but even more important is for the total jobs to be growing faster than 100,000 per month. Long term it needs to grow faster than that but beating that target for several months should be a strong indication we may be reaching a bottom. There are plenty of other factors to look at also: average hours worked per week, increasing average pay, GDP growth, improving consumer confidence, reduction in consumer debt…
Related: USA Unemployment Rate Rises to 8.1%, Highest Level Since 1983 – Bad News on Jobs – What Do Unemployment Stats Mean? – Over 500,000 Jobs Disappeared in November
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