California's jobless rate set a fresh postwar high in August, rising to 12.2% from 11.9% in July and putting more pressure on the state's tattered unemployment insurance fund.
Though the state may be in the early stages of an economic rebound, the latest figures underscore what many economists fear: There is no obvious engine of job growth to put California's more than 2.2 million unemployed residents back to work quickly.
There was some encouraging news in the job figures released Friday by the state Employment Development Department. The pace of payroll job losses has slowed dramatically. California employers slashed a net 12,300 jobs last month. That's down from 39,000 jobs lost in July and the average of more than 70,000 jobs shed monthly during the first half of the year.
Still, the sheer number of Californians out of work -- and the lengthening duration of their joblessness -- is worrisome to economists and public officials. Nearly 30% of the state's unemployed have been out of work at least 27 weeks.
California's unemployment rate is well above the national rate of 9.7%. And it's the fourth-highest in the nation; only Michigan, Nevada and Rhode Island, at 15.2%, 13.2% and 12.8%, respectively, are faring worse. Unemployment will not decline until industries such as renewable energy, healthcare and construction experience significant growth, economists say. Most don't expect that any time soon.
"The unemployment rate hasn't peaked yet," said Jed Kolko, associate director of research at the Public Policy Institute of California. "It's likely to still get higher, and stay high for several more quarters."
Grinding joblessness is putting a financial strain on the state unemployment fund, which has had to turn to the federal government for loans. It hurts cities, which are collecting less sales tax and property tax than they were before the bust. And it drags down consumer confidence as Californians, already out of work or wary of losing their jobs, hold back on spending, which in turn slows job growth.
Hacienda Heights resident Robert Dumas, 52, and his son Michael, 20, were laid off from a plumbing fixtures manufacturer on the same day in February. They lost their health insurance, applied for food stamps and are coming dangerously close to defaulting on their home loans, said Robert's wife, Donna.
All three members of the Dumas family have been looking for work. Donna Dumas' mother is moving in and contributing her Social Security to help pay the home loans.
