California Unemployment Rate Crept Higher In June

SACRAMENTO (CBS/AP) – California’s economy is staying soft into the summer, with the state unemployment rate for June rising slightly even as employers added workers.

The state added 28,800 payroll jobs in June, the state Employment Development Department said Friday.

But a survey of workers—which is used to calculate the jobless rate but is considered less reliable—showed 37,000 fewer people employed in California. That helped drive the jobless rate to 11.8 percent, second only to Nevada and up from 11.7 percent in May.

The California rate fell below 12 percent in April for the first time since 2009, but the state has seen weak job growth or job losses since then.

The U.S. unemployment rate climbed to 9.2 percent in June, adding a net of just 18,000 jobs nationwide.

However, high tech hiring seems to be on the rise in Silicon Valley. The Bay Area added 14,000 high tech jobs in the past year with more than a third of these jobs in the South Bay.

KCBS’ Mike Colgan Reports:

“The South Bay seems to be leading the way out of the recession and into our recovery though it is taking a while, a little bit longer than everybody expects but we’re going to get there” EDD Labor Analyst Janice Shriver

Just about every Bay Area County showed a .6 or .7 increase in the jobless rate, but Shriver said those figures are deceiving.

“It’s not really alarming because usually between May and June of every year the labor force increases and the unemployment rate tends to increase as well.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

  • Milan Moravec

    Employability is solution to unemployment in California. As businesses, universities, states, counties, cities worldwide stumble through the recession some find themselves in a phase of creative disassembly. Hundreds of thousands of jobs are shed. World class University of California Berkeley Chancellor Birgeneau ($500,000 salary) and his $7 million outside consultants are firing employees via his “Operational Excellence (OE)”: 2,000 axed by end 2011. Yet many cling to an old assumption: the implied, unwritten management-employee contract.

    Management promised work, upward progress for employees fitting in, employees accepted lower wages, performing in prescribed ways, sticking around. Longevity was good employer-employee relations; turnover a dysfunction. None of these assumptions apply in the 21 century economy. Businesses, universities, public institutions can no longer guarantee careers, even if they want to. Managements paralyzed themselves with a strategy of “success brings successes” rather than “successes brings failure’ and are now forced to break implied contract with employees – a contract nurtured by management that future can be controlled.

    Jettisoned employees are discovering that hard won knowledge earned while loyal is no longer desired in employment markets. What contract can employers, employees make with each other?

    The central idea is simple, powerful: job is a shared partnership.
    • Employers, employees face financial conditions together; longevity of partnership depends on how well customers, constituencies needs are met.
    • Neither management nor employee has future obligation to the other.
    • Organizations train people.
    • Employees create security they really need – skills, knowledge that creates employability in 21st century economies
    • The management-employee loyalty partnership can be dissolved without either party considering the other a traitor.

    Sustained employability in the 21st century economy is not loyalty to management, company, university, public agency or union.

  • California Economy « Ben's Weblog

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