California Loses Jobs As Jobless Rate Declines Again

   SACRAMENTO, Calif. (AP) — The unemployment rate in California fell again in May, dropping to 11.7 percent, a state agency reported Friday, but the number of jobs in the state is also down.

   It was the fifth month in a row with a lower jobless rate, even though a survey of 42,000 California businesses showed the state lost about 29,000 payroll jobs during May.

   People who are not seeking work aren’t counted in the labor force, so the jobless rate can go down even with fewer jobs. Weak and spotty job growth has been common during the economic recovery from the recent recession.

   A federal survey of about 5,500 California households estimated that there were roughly 2,117,000 people unemployed in the state in May. That’s down by 24,000 from April and by 134,000 from May 2010.

   The state unemployment rate in April dipped below 12 percent for the first time since 2009. Officials originally estimated the April figure at 11.9 percent but dropped it to 11.8 percent after additional study. The jobless rate in May 2010 was 12.4 percent.

   Still, not all of the improvement in the jobless rate reflects economic recovery. The size of the labor force also shrank, as some people stopped looking for work or went back to school, which can lower the calculated unemployment rate.

   Economists tend to give more weight to the job numbers, which are more statistically reliable. Payroll employment in California was estimated at 14,031,700 in May, down by 29,200 from April. The losses hit most industries in the state, especially professional and business services and construction. The bright spots were in financial services and information.

   The state gained a tepid 87,500 payroll jobs in a year, up just 0.6 percent.

   (Copyright 2011 by The Associated Press.  All Rights Reserved.)

  • sandy

    The only readson that it seems like unemployment has dropped is because all of those people’s who moneys and extensions have ran out. I bet there are twice as much people unemployed. Only unemployment won’t show it. Seriously.

    • H.Cole

      Sandy, I was thinking the same thing.. How do we count for all the people who are no longer on unemployment but still unemployed. I sure hope people relize that just because there not collecting anymore that the economy is getting better.

      • knhub

        and the 25 hr a week cant find enough income to survive people like me?? We arent counted either….. We may be employed….. but our lives are falling apart.

  • Ray

    I think they may have it wrong maybe the employment rate is 11.7 %

    • Mace

      LOL absolutely correct. They know those numbers are wrong. Besides if your not working at least 32 hours a week, it shouldn’t even count. What a joke. I hope everyone keeps their head up, I don’t believe a career change is necessary or fair to people. No one wants to stay in debt.

  • Yvonne Travers

    Article failed to mention all the people who have had to leave the state to find employment elswhere.
    Thank a Democrat for creating a shipwreck out of what was once a prosperous and business thriving state.

  • Bob Gray

    Lets see, The first article said the states unemployment went down…..the second article said that employeers in California are cutting jobs….is this the Obama math again??

  • Dave

    Dropped because when your benefits end, they no longer count you as unemployed. IMPEACH OBAMA the destroyer now!!!!!!


    Face it, California is misgoverned. Taxes, Fees, Regulations, are driving business out. This state is not business friendly. The Politicians are for a lack of better words are just plain , “STUPID”. How do you take a diamond and turn it into a turd, simple study California since 1966 to the present. Cut taxes and spending, sorry cut entitlements and public education first of all and see what happens.

  • Sarcastic

    What we need to solve this problem are more taxes and more environmental regulations, like cap and trade. Then we’ll get that green economy going strong.
    Go progressive reform, bring those evil businesses to their knees.

  • steph

    How could Obama be at fault when this umemployment has been going on since before he was elected president .It was 9.6 percent. too many people want to blame him for things that already existed. No one wlll ever be satisfied with any president. Americans need to just deal with situations and quit complaining. It could worse.Think of the other countries.USA is selfish and spoiled

    • knhub

      you have some good pts…. a lot of this began in the late 90s when the buble got a little too big, and Worldcom and Enrom started the burst (were the initial blow ups)….

      Part of thew problem is the way we are dealing with the problems, instead of going back to what worked and made us the greatest country in the world, we hear “we arent going to do that, this isnt the 50s anymore, or this isnt the 1800s anymore” .. so you dont want to do what works because it happened in the past…???

      Those who fail to learn the mistakes of the past, are condemned to repeat them.

      • Mace

        I think people need someone to fault, these problems began many many moons ago, and finally spiraled out of control, one man couldn’t be responsible for this. A monster created this mess, and is probably some where with a grin on his face. We have to stay patient and trust in GOD this will end soon. It’s been really tough on people, we have to do what we need to in order to survive.

    • Fred

      He promised “hope and Change”. He is hopeless and nothing has changed – just more of the same. In that position, one either succeeds or fails, there is no middle ground. He has not delivered what he promised, therefore he has not succeeded, therefore he has failed.

  • gay person

    california needs to promote more tourism
    its the lifeline of the state

    • derF

      Good plan – we could all be tour guides. Forget manufacturing and agriculture – those sort of jobs are just so, uh, messy

  • Paul

    I thought Obama spent 880 BILLION dollars on the porkulus stimulas bill for shovel ready projects. Looks like money well spent by Obama and the Democrats. Job well done Obama!

    • Fred

      Yeah, but look at all of the cool vacations Michelle and the girls got to take at taxpayer expense

  • Sherry M

    I liked the cash for clunkers stimulus. It got alot of Obama bumper stickers off the road.

  • California Loses Jobs As Jobless Rate Declines Again | SpinnerNews

    […] California Loses Jobs As Jobless Rate Declines Again California Loses Jobs As Jobless Rate Declines Again The unemployment rate in California fell again in May, dropping to 11.7 percent, a state agency reported Friday, but the number of jobs in the state is also down. Read more on CBS Sacramento […]

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