California unemployment rate touched record high of 11.9% in July!

Employment Development

According to the Friday report issued by California's Employment Development Department, the statewide jobless rate in July touched a record 11.9 percent - with nearly 2.2 million unemployed Californians -, with the state figures being far more than the 9.4 percent average jobless rate countrywide.

While the jobless rate in the state during June stood at 11.6 percent; the figures were 7.3 percent a year back.

Noting that over 812,000 people have collected unemployment benefits, the report said that with California apparently suffering excessively due to the economic crisis, the state's unemployment rate happens to be the fourth highest in the US. Even with the resumption of economic growth, the state's jobless rate has risen because employers are waiting for the recovery to take root!

Commenting on the scenario in the so-termed Golden State, Jon Haveman, of Beacon Economics in San Rafael, said: "The downturn in California is deeper and more sustained than in the nation. We're getting closer to the bottom but I don't think we're there yet."

As per the opinion of the economists, the key reason behind the slow recovery in California is its housing industry. Going by the statistics revealed by the Center for the Continuing Study of the California Economy, construction jobs in the state have plunged 32 percent in the last three years, as against the 20 percent national decline.

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