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California unemployment hits 10.1% in February

The state's unemployment rate rises from 10.1% in January and is the highest since April 1983. L.A. County's jobless rate is 11%.

March 21, 2009|Marc Lifsher

SACRAMENTO — California employers led the nation in mass layoffs in February as the state's unemployment rate hit 10.5%, the highest level since April 1983, state and federal labor agencies reported Friday.

The reductions cascaded across all areas of the Golden State's economy, hitting major corporations that included Circuit City Stores Inc., Yahoo Inc., JPMorgan Chase & Co. bank, Ralphs Grocery Co. and the Los Angeles law firm of Latham & Watkins, among others.


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Big companies, which must file mandatory government reports every time they lay off at least 50 employees, gave pink slips to 45,557 Californians last month.

Nationally, mass layoff events reached a record high in February, affecting 295,477 jobs in all industries tracked by the Bureau of Labor Statistics.

The biggest portion, about a third, were in manufacturing, followed by retail trade and transportation and warehousing.

California's losses were far higher than Illinois', with 19,469 jobs lost. Pennsylvania and Wisconsin were third and fourth.

But the mass layoffs were only a modest portion of the damage done to the Golden State's economy because the bulk of jobs are at small and medium-size businesses.

In all, California lost 116,000 jobs in February, bringing the 12-month total to 605,900.

Layoffs began 18 months ago in residential construction and moved to finance and wholesale and retail trade. Now, the state numbers show that cutbacks are hitting the once-secure bastions of healthcare, education and government services, sending new waves of unemployed workers to job-hunting centers.

"The job losses are intensifying and becoming more broad-based," said Esmael Adibi, an economist at Chapman University in Orange.

Construction, which continues to weaken, suffered the most in February, shedding 30,900 jobs. All other industries reported declines, with the exception of information, which includes television and movie production.

"Even the sectors that were considered recession-proof are losing steam," Adibi said.

California's jobless rate rose four-tenths of a percentage point in February, from 10.1% in January. A year earlier the rate was 6.2%. Unemployment in Los Angeles County increased by a slightly larger margin, to 10.9% in February from a revised 10.4% in January and 6.1% a year earlier.

Last month's national rate was 8.1%.

Both federal and California laws require employers to report large layoffs, though details of the mandates differ.

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