Written by Nicholas Vetrisek
At first glance, California’s unemployment rate is beginning to recover from the COVID-19 pandemic. Recently, the state’s unemployment numbers were revealed and they show that the unemployment rate has dropped from 13.5% to 11.4%. On the surface, this certainly appears to be great news.
Unfortunately, the rate is much higher than the state is currently saying. Much of the work is seasonal, such as workers conducting the 2020 Census and college employees going back to work as school starts up again. Though the drop in unemployment corresponds to about 300,000 jobs, analysis from Beacon Economics and the UCR School of Business Center for Economic Forecasting and Development indicates that only 35,000 of these jobs were permanent hires by private companies.
California and New York have 18% of the US population, but 32% of all the people receiving unemployment benefits. Florida, Texas, South Dakota, and Indiana also have 18% of the US population, but just 13% of those receiving unemployment benefits. It’s all about ending lockdowns.
— Brian Wesbury (@wesbury) September 30, 2020
In addition, the state’s Employment Development Department claims that 710,000 people have left the workforce altogether. They are not working, but also aren’t considered unemployed. If included in unemployment numbers, the total number would be 2.8 million people and a 15% unemployment rate, which would be among the highest in the country.
Even with the incorrect numbers, California’s 11.4% unemployment rate is substantially higher than the nationwide average of 8.4% and is fifth highest in the nation. This unemployment crisis is barely being attended to Democrats, who are already embroiled in a major unemployment insurance claims scandal.
