California unemployment rate is worst in the country for second year in a row

Congrats to Gavin Newsom.  To prove he is the most qualified Democrat to replace Biden, California has the highest unemployment rate in the nation, for the second year in a row!  Worse. Just in the past year it has grown by 20%.

“California possesses the highest unemployment rate in the country, with the national average being 3.9%. Washington, D.C., was not far behind California, with an unemployment rate of 5.2%, and Nevada was at 5.1%. 

A year ago, California’s rate was 4.5% — though it still ranked as the highest in the country.  

Now you understand why sales, income and corporation taxes are down—and the unemployment fund is broke.  Newsom may be the worst governor in the nation, thus qualifying him as a Democrat Presidential candidate.

California unemployment rate is worst in the country for second year in a row

Elaine Mallon, Washington Examiner, 5/21/24  https://gazette.com/news/wex/california-unemployment-rate-is-worst-in-the-country-for-second-year-in-a-row/article_d026eef2-41ff-5763-a9ec-47d8396f883d.html#:~:text=A%20new%20jobs%20report%20reveals,the%20national%20average%20being%203.9%25.

A new jobs report reveals California’s unemployment rate in April was 5.3% for the third month in a row.

California possesses the highest unemployment rate in the country, with the national average being 3.9%. Washington, D.C., was not far behind California, with an unemployment rate of 5.2%, and Nevada was at 5.1%. 

A year ago, California’s rate was 4.5% — though it still ranked as the highest in the country.  

Former Employment Development Department Director Michael Bernick told the Sacramento Bee that California’s high unemployment rate can be attributed to small businesses struggling with higher prices and tightened consumer spending, tech layoffs that are still above pre-pandemic rates, and the end of “the enormous federal and state pandemic and post-pandemic spending.” 

For every 140 unemployed workers, there were 100 job openings in March. Less than two years ago, there were about two job openings for every unemployed person. In the past 12 months, the number of unemployed workers reached 164,000.

However, in April, employers added 5,200 non-farm jobs to the economy. This is down from 18,200 added in March.  

As the state deals with the highest unemployment rate in the nation, it is also struggling to deal with a debt of about $21 billion incurred to help cover the costs of unemployment benefits. 

Employers’ payroll taxes are increasing in order to cover unemployment benefits and also to cover a state surcharge and federal surtax to pay off the principal on the debt. This will just add to the burden of operating costs for businesses and lower employee’s wages. However, another concern that exists is the state doesn’t mandate businesses pay enough money to the unemployment insurance fund for workers in need.

But analysts suggest the state’s deficit in unemployment benefits can be largely attributed to how it managed $43.5 billion it received from the American Rescue Plan. Instead of paying off the unprecedented number of unemployment claims during the coronavirus pandemic, the state opted to use the money to provide additional stimulus checks for residents.

“California had options, and it chose the spending option instead of the responsible option,” Matt Weidinger, a senior fellow at the American Enterprise Institute, told the Los Angeles Times.

California has already paid $650 million in interest on the loan and will owe $550 million by Sept. 30.