California unemployment rate surges to 7.3 percent

SACRAMENTO
August 15, 2008 10:46am

California’s unemployment rate was 7.3 percent in July, up from a revised 7.0 percent in June, the state Employment Development Department (EDD) says in a report Friday.

A year ago, in July 2007, California’s unemployment rate was 5.4 percent.

Jobless rates in the Central Valley topped 10 percent in many counties.

According to EDD’s monthly survey of employers, nonfarm payroll employment decreased by 14,900 jobs over the month, for a total of 15,116,800.

According to the separate survey of households, the number of Californians holding jobs in July was 17,056,000. This is a decrease of 93,000 from June, and down 179,000 from the employment total in July of last year.

The number of people unemployed in California was 1,352,000 – up by 70,000 from June, and up by 374,000 compared with July of last year.

Of the unemployed, 510,700 were laid off, 86,600 left their jobs voluntarily, and the rest were either new entrants or reentrants into the labor market, or persons who completed temporary jobs.

In related data, the EDD reported that there were 480,226 people receiving regular unemployment insurance benefits during the July survey week. This compares with 457,193 in June and 363,077 last year.

At the same time, new claims for unemployment insurance were 58,131 in July 2008, compared with 56,359 in June and 41,236 in July of last year.

“The entire nation continues to suffer through a slow economy that is affecting jobs and families here in California,” says Gov. Arnold Schwarzenegger.

“Construction and financial services continue to struggle in California, but I am encouraged about recent increases in housing purchases and that other job sectors – while they do not have the robust growth we want or expect in California – are holding steady,” he says.

By county, from south to north, here are the Central Valley unemployment rates for July, followed by the June rates in parentheses and the May rates in brackets:

• Kern, 9.9 percent; (9.5 percent); [9.5 percent]

• Tulare, 10.9 percent; (9.8 percent); [9.5 percent]

• Kings, 9.9 percent; (10.1 percent); [9.5 percent]

• Fresno, 10.1 percent; (9.7 percent); [9.7 percent]

• Madera, 9.5 percent; (8.9 percent0; [9.1 percent]

• Merced, 12.1 percent; (11.8 percent); [11.7 percent]

• Stanislaus, 11.3 percent; (10.9 percent); [10.8 percent]

• San Joaquin, 10.6 percent; (9.8 percent); [9.5 percent]

• Sacramento, 7.5 percent; (7.0 percent); [6.5 percent]

• Yolo, 7.1 percent; (6.9 percent); [6.6 percent]

• Butte, 8.9 percent; (8.2 percent); [7.5 percent]

The state’s figures are estimates of jobs that are on payrolls, not actual headcounts. The estimates do not include those who work for themselves nor do the numbers include the jobless who have given up looking for work.