Stephen Levy

California is adding more high-paying jobs in affluent coastal areas, but the government and construction sectors remain big drags on the economy as communities inland continue to struggle. Employers added 4,000 payroll jobs in February, signaling slow but steady improvement in the labor market, according to figures released Friday by the California Employment Development Department. Despite the gains, however, the state's unemployment rate remained unchanged at 10.9% as more workers dusted off their resumes to look for employment.

California is adding more high-paying jobs in affluent coastal areas, but the government and construction sectors remain big drags on the economy as communities inland continue to struggle. Employers added 4,000 payroll jobs in February, signaling slow but steady improvement in the labor market, according to figures released Friday by the California Employment Development Department. Despite the gains, however, the state's unemployment rate remained unchanged at 10.9% as more workers dusted off their resumes to look for employment.

On a towering cliff overlooking the sun-sparkled shores of Carlsbad, Calif., Dawn Santos watched a squadron of pelicans fly past the campsite where she and her family were staying for four days of campfires, bike rides and splashing in the surf. "It's gorgeous," the Rancho Cucamonga mother of three marveled as the afternoon sky turned bright pink. Here at South Carlsbad State Beach in San Diego County, the Santos family took a break from work and school by renting a 26-foot trailer to enjoy one of California's most valuable economic assets — its outdoor riches.

California's unemployment rate dropped in November to 11.3%, the fourth straight month of decline and a sign that the state's labor market continues its slow recovery. November's jobless rate fell sharply from the 11.7% rate posted in October, according to data released Friday by the Employment Development Department, even though California employers added a modest 6,600 workers to their payrolls last month. Analysts said a sharp upward revision in the number of payroll jobs added in October helped.

California's unemployment rate dropped in November to 11.3%, the fourth straight month of decline and a sign that the state's labor market continues its slow recovery. November's jobless rate fell sharply from the 11.7% rate posted in October, according to data released Friday by the Employment Development Department, even though California employers added a modest 6,600 workers to their payrolls last month. Analysts said a sharp upward revision in the number of payroll jobs added in October helped.

Here's yet another result of the bad economy: California's congressional delegation is unlikely to grow and could even lose a seat after next year's census for the first time since stagecoach days. If the state loses a seat, it could weaken California's clout in Washington and reduce the amount of federal money flowing to the state. It could also set off a game of political musical chairs, forcing two incumbents to run against each other.

California employers added nearly 12,000 jobs in September, the second straight month of employment growth. But the pace of hiring wasn't enough to make a significant dent in the state's unemployment rate. The jobless rate last month fell to 11.9% from 12.1% in August, the California Employment Development Department said. That's still well above the national unemployment rate of 9.1%. The unemployment rate in Los Angeles County slid slightly to 12.4%, from 12.5% the previous month.

For a clue to why California is losing its allure as a place to settle down, just ask Jennifer McCluer, who moved out of California in 2007 after she obtained her license in skin care. Unable to afford Orange County's sky-high rents, she opted for Portland, Ore. "A big motivator was that I lived with roommate after roommate after roommate," said McCluer, 30. "Friends said you could probably live on your own up here. The rent was a huge deal for me. " McCluer would like to move back, but it's still too expensive.

The office vacancy rate in Silicon Valley rose to the highest in more than four years in the second quarter as technology firms cut jobs in the recession, according to commercial brokerage Studley. Vacancies in the market that includes Palo Alto, Santa Clara, San Jose, Sunnyvale and Mountain View climbed to 20% from 11.7% a year earlier, Studley said. "The recession hit very late and very swiftly," said Stephen Levy, director of the Center for the Continuing Study of the California Economy in Palo Alto.

Clinton Plan May Help California's Economy: Only a vigorous national recovery--with annual growth of 4% to 5%--will pull California out of its persistent economic slump, according to the Center for Continuing Study of the California Economy. "In the short term, all other issues (e.g., workers' compensation, regulation, infrastructure investment) are secondary in magnitude to having a strong national recovery," says the report by economists Stephen Levy and Robert K. Arnold.

California employers added nearly 12,000 jobs in September, the second straight month of employment growth. But the pace of hiring wasn't enough to make a significant dent in the state's unemployment rate. The jobless rate last month fell to 11.9% from 12.1% in August, the California Employment Development Department said. That's still well above the national unemployment rate of 9.1%. The unemployment rate in Los Angeles County slid slightly to 12.4%, from 12.5% the previous month.

On a towering cliff overlooking the sun-sparkled shores of Carlsbad, Calif., Dawn Santos watched a squadron of pelicans fly past the campsite where she and her family were staying for four days of campfires, bike rides and splashing in the surf. "It's gorgeous," the Rancho Cucamonga mother of three marveled as the afternoon sky turned bright pink. Here at South Carlsbad State Beach in San Diego County, the Santos family took a break from work and school by renting a 26-foot trailer to enjoy one of California's most valuable economic assets — its outdoor riches.

Here's yet another result of the bad economy: California's congressional delegation is unlikely to grow and could even lose a seat after next year's census for the first time since stagecoach days. If the state loses a seat, it could weaken California's clout in Washington and reduce the amount of federal money flowing to the state. It could also set off a game of political musical chairs, forcing two incumbents to run against each other.

San Luis Obispo is California's fastest-growing county, with Lake in second place and Placer in third, the Center for the Continuing Study of the California Economy reported. The Palo Alto-based center said it calculated the rankings by combining the percentage increases in population, taxable retail sales, per capita income and salaried jobs since 1980.