California’s unemployment rate continues to rise, reaching 12.5% in October. However, the state may have actually added jobs for the first time in over a year and a half:
Still, not all signs are negative. The state gained 25,700 jobs in October, reversing a trend that’s seen California lose 687,700 jobs over the year. It is the first time the state has added jobs since April 2008.
There’s some dispute about that number. According to John Myers at KQED Capitol Notes, it’s numbers from state agencies that show growth, whereas federal numbers show a further decline. Even if the state really had added jobs (and the reports don’t say in which sectors those jobs were added) it’s a tiny fraction of what we need to restore the two years of job loss.
It’s also unclear whether this is the trough of the recession and the prelude to a long climb upward – or whether it is a temporary respite before another downward slide. The latter outcome is looking more likely, as California faces another crippling round of budget cuts, as we close off educational opportunity to the masses, and as we have another two years to go before foreclosures peak.
These numbers should be sobering news to California legislators, who need to emphasize job creation. We’ve tried creating jobs the right-wing way, through massive tax and spending cuts and letting corporations do as they please. It hasn’t worked. Perhaps it is time to do the only thing proven to create jobs this year, and that is spend public money to do it.
…10 reasons to believe we’re in a Depression, from Seeking Alpha. Hard to disagree here.
There couldn’t be any connection between the fiscal mess the state is in and unemployment here being higher than the national average… could there?
I know! Let’s cut a bunch of state jobs and lower taxes on the rich. That always seems to fix things.
/snark
I own a small business and employ about 50 people. I am losing money like crazy right now. I’m making all the cuts I can right now with one exception: I won’t lay off anyone and I won’t cut salaries. My employees mean everything to me. I have not taken home any money for months. Hopefully business will pick up soon.
Perhaps my situation is unusual, but I find taxes to be very high, regulations to be very, very onerous and the overall climate for business to be poor but improving. In recent months various agencies that regulate my business have been less aggressive and much more reasonable in how they interpret laws that govern our work.
I would be interested in the experience of other business owners who frequent this blog.
I’m new to calitics so forgive me. As an independent with little to no confidence in either party, I find it quite sad, I must say at how many of those on the left, as I suspect many who follow this site, which at first glance interests me and will continue to follow, continue to cling to a narrative that doesn’t accord much with real life.
i was once a dreamer too.
The writer concludes with “We’ve tried creating jobs the right-wing way, through massive tax and spending cuts and letting corporations do as they please. It hasn’t worked. Perhaps it is time to do the only thing proven to create jobs this year, and that is spend public money to do it.”
Yet he gives no facts or evidence to support his claim. Even the most elementary understanding of california knows this is woefully not true. What massive tax cuts do you speak of? Last time I checked sacramento has raised taxes this year.
Letting corporations do as they please? People and corporations have been leaving this state in greater numbers than have been coming here for the past five years. This is a statement unsupported by evidence.
Perhaps it is time to do the only thing proven to create jobs this year, and that is spend public money to do it??
Do you mean along the lines of the failed federal stimulus
that has borrowed/spend billions of dollars for nothing? Spending money in the short term as a means to stimulate growth and create jobs is simply transferring money from one class of persons, usually the productive to another class of persons, often times the less productive that doesn’t last longer than the original transaction. This is why weatherizing government buildings won’t stimulate and sustain growth.
Last time I checked this state was in a perpetual state of budgetary dysfunction due to a highly progressive income tax that goes boom and bust. Such a system might work if the money generated during the boom years were able to finance the bust years but the past decade proves that unfortunately isn’t the case.
It ruined the career of an otherwise good nan and honorable public servant in gray davis. Arnold Schwarzennegger, another good and honorable man has faired no better. How much longer can this continue? How many more small business owners and nominally wealthy persons have to up and move to arizona, nevada, utah, colorado, florida and tejas before the political class gets it???
Too long I’m afraid.