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Sacramento Company Says Rising Unemployment Costs Preventing New Hiring

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Anjali Hemphill Anjali Hemphill
Anjali Hemphill joined CBS 13 in June 2012 and she's happy to make the...
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SACRAMENTO (CBS13) – Twenty-five thousand jobs were added in California in July, but the unemployment number of 10.7 percent remained unchanged.

One local company has added jobs this year, but owners say it’s the number of people already unemployed that’s preventing them from hiring any more.

“I think it’s extremely depressing,” said Matthew Carrigan, unemployed.

That’s how most people feel about being unemployed, and a new report shows some of them are having such a hard time finding a new job, they are giving up all together.

Around 30 percent fewer new jobs were created last month than the average so far this year.

Paladin Security says they’ve hired at least 20 new employees this year, five in just the last month, but costs are keeping them from hiring more.

“We need to be able to front the hiring costs, training costs and the logistical costs associated with our services,” said Matt Carroll, VP of operations, Paladin Security.

But, the money they would use to train new hires is being funneled elsewhere.

He says it is in part to the state for higher unemployment insurance premiums, because of so many people out of work; and, that’s not all.

“Unfortunately those costs go to regulatory fees, insurance premiums on the rise, health insurance fees going up, and that impacts our ability to create jobs,” said Carroll.

Meanwhile, as the people are still looking for work, some are trying to stay positive.

“I have a better attitude. I don’t feel as desperate. I know something will happen,” said Carrigan.

“We are trying to do our part, keeping America employed and putting people to work. But, we need capital to do that,” said Carroll. “As a business, “X” dollars will come in and “X” dollars will go out. It’s just a matter of where the money is going.”

According to EDD, the state of California has added the most jobs in the nation in the past year; but, even with those new jobs, California still has the third highest unemployment rate in the country.

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