CA soon could have highest U.S. unemployment rate

Unemployment Line - DepressionJan. 24, 2013

California’s unemployment rate stayed the same in December, at 9.8 percent, the third highest. But what’s curious is that the unemployment rates of No. 1 and No. 2, Nevada and Rhodes Island at 10.2 percent each, are inching downward and soon likely will be lower than California’s.

Meaning California would have the nation’s highest unemployment rate probably for the first time in its history. And in his State of the State address today Gov. Brown blabbed about how great things supposedly are.

From Nov. 2011 to Nov. 2012, Nevada’s unemployment dropped a sharp 2.8 percentage points, from 13 percent to 10.2 percent. In the same period, California’s unemployment dropped only half as fast, by 1.4 percentage points.

Nevada was hit even harder than California by the housing crash. But its core businesses, entertainment and vice, always will remain attractive. And its 0 percent state income tax rate is drawing in Californian rich folks eager to escape our 13.3 percent top income tax rate after deluded voters imposed Proposition 30. Nevada almost certainly will see its unemployment rate drop below California’s later this year.

Rhode Island’s unemployment went down more slowly, by 0.8 percentage points; it dropped from 11 percent in Dec. 2011 to 10.2 percent in Dec. 2012. That’s less than California’s 1.4 percentage point drop. But I expect that Rhode Island will continue to make progress. For one thing, its Democratic-run political system actually is reforming the pensions of government-worker unions, whereas California is not.

For another thing, California’s higher taxes, stiffer regulations and hare-brained schemes like High-Speed Rail are going to increase unemployment here.

Hoping to excel his late father’s accomplishments with building infrastructure in the 1960s, Brown was enthusiastic in his speech today about his dream for California. The reality will be that he’ll soon be dealing mainly with higher unemployment and declining budgets.

 

5 comments

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  1. Hondo
    Hondo 25 January, 2013, 09:18

    What is this, a trick question? When you slam Kali with the highest taxes, worst regulation and lawyers, what do you expect.
    California has the greatest ability to grow the economy and create jobs on earth. No place on earth has more going for it. So tell me you liberals why its unemployment rate has stayed the worst in america but for a couple small states? You can’t blame arnold, he governed like a liberal. Nor the Koch bros, they don’t hang here. A dozen dem run states with a fraction of the economic capacity per capita have much better jobs numbers.
    Kalifornia’s mess was created by its socialist democratic leadership. Every arguement you make can be applied to any other state. Except for the bad leadership.
    Gerry Clown says the state is doing great with an unemployment rate at 9.8. What planet does he live on.
    Hondo…

    Reply this comment
  2. us citizen
    us citizen 25 January, 2013, 14:07

    Moonbeam’s dreaming all right. I wonder if he will ever wake up. Naw, I dont really wonder. I know he wont. His brain hemispheres have permanently been severed.

    Reply this comment
  3. Donkey
    Donkey 25 January, 2013, 15:40

    Jerry Brown is an LSD induced ride of his own making. 🙂

    Reply this comment
  4. Calwatchsux
    Calwatchsux 28 January, 2013, 17:13

    The high unemployment is a direct result of corporations deciding they’d rather force one employee to do the work of three so the CEOs can continue to enjoy their mansions at the beach. Look at the REAL data, not the spew of these tea baggers: Corporate revenues are at an all-time high. Home sales in California are outpacing the nation so clearly SOMEONE is buying homes here. Why don’t you [expletive deleted] reveal YOUR salaries & funding sources? No, you’d rather bitch about some guy making $45,000 a year for 10 years getting a pension. Maybe if any of you held real jobs you’d have a [expletive deleted] clue.

    Reply this comment
  5. jc
    jc 10 April, 2013, 16:43

    The housing market is supported by drug cartel and China buying the property. California business climate is screwed and California will go into bankruptcy!

    Reply this comment

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