California Business Minute™

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Hi, I am Tim Johnson and welcome to the California Business Minute.

California’s unemployment rate continued its anemic pattern, dropping by a
factional amount from 12 to 11.9 percent according to the state’s Employment
Development Department.

The news released by the state is based upon two surveys, a federal and state.
However, the press release provides little written insight to what has transpired. 
Let’s try to clarify.

First, it illustrates the use of the federal survey of households (a small survey
of 5,500 households).  It identifies that there were 15,939,000 people in the state
workforce holding jobs in April.  This is an increase of 37,000 from March 2011. 
The same survey identifies that there were 2,143,000 unemployed in April in the
state, down by 33,000 from March 2011.  However, take and divide the number of
unemployed by those working and the unemployment rate is over 13 percent. 
Additionally what happen to the 4,000 that are unaccounted for in the survey?

The second is the state survey of businesses or of employers (state loosely uses
these terms to define their survey).  They estimate that there are 18,081,000
civilians in the workforce of which 2,143,000 are unemployed for an 11.9 percent
unemployment rate.  EDD also identifies that year-over–year there has been an
increase in 144,000 jobs.  However, recall in February, EDD identified that there
were nearly 100,000 jobs created but revised to 85,000. Subtract that number from
the 144,000 and then divide by 11 months and the state is creating on average just
over 5,000 jobs per month.  Some solace for the 2 million unemployed Californians. 
Additionally, unemployment claims rose for the month by nearly 3,000 although
unemployment rate decreased.

Meanwhile, the national unemployment rate rose from 8.8 to 9 percent.  Six California
counties were below the national unemployment rate.  Marin County has the lowest rate
in the state at 7.6 percent.  Imperial County takes over again as the highest
unemployment rate at 27.9. Sutter County is at 21.4 and Colusa at 21.1.

I am Tim Johnson and this has been the California Business Minute.