CA taxes, mandates boost unemployment

CA taxes, mandates boost unemployment

 

California Unemployment Development Department“California raised a bunch of taxes this year. Its economy hasn’t collapsed.” So read the snarky headline accompanying a post last month by Jim Tankersley on the Washington Post’s Wonkblog.

“Eight months after raising sales and income taxes, California is still adding jobs on par with the rest of the nation,” wrote Tankersley. “The doomsday predictions haven’t come true. California is still recovering.”

Well, I’m waiting for the WaPo blogger to post a followup addressing the latest jobs report by the California Employment Development Department. It reveals that the state’s unemployment rate rose for the second straight month in August, after 23 straight months of decline.

And while California actually was outpacing the U.S. rate of job creation earlier this year, with payroll growth of roughly 2 percent, as the Los Angeles Times noted last week, the Golden State’s year-over-year rate of job creation was 1.5 percent in August, which actually was lower than the nation’s rate of job creation.

The 29,100 nonfarm payroll jobs created in August brings total job creation to 826,500 since February 2010, when the state’s economic recovery began, according to EDD’s jobs report. Yet, while that job creation is welcome, California still has not recovered all 1.4 million jobs it lost during the Great Recession.

Indeed, three-and-a-half years into California’s recovery, some 1.6 million people are unemployed, EDD reported. Another 1.3 million California workers can only find part-time jobs, according to an “economy brief” issued this month by the nonprofit California Budget Report.

Obamacare

Some 240,000 California workers are in danger of losing hours (and the wages that go along with), according to a study by the UC Berkeley Center for Labor Research and Education, because of the new Obamacare mandate that employers with payrolls of 50 or more workers must provide health insurance to those working 30 hours a week or more.

All of this adds up to a state jobless rate of 8.9 percent in August, which is nowhere near the state’s 5.8 percent jobless rate when the recession officially began back in December 2007.

Tankersley, the WaPo blogger, somehow thinks that the more than $30 billion in new taxes (over the next five years) that took effect here in the Golden State at the start of 2013 has had no damping effect on job creation. But the anemic jobs growth of the past two months, and resultant uptick in the state’s jobless rates, suggests otherwise.

And, regrettably, the California jobs outlook doesn’t look especially promising for the near future.

That’s because, in addition to the bunch of new taxes California has imposed, and in addition to the costly new health insurance mandate Obamacare has imposed, the Legislature sent a measure this month to the governor’s desk that will raise the state’s minimum wage by a job-killing 25 percent over the next three years.

That may not add up to a doomsday scenario to “wonks” like Tankerley. But it certainly is for the nearly 3 million Californians that are either unemployed or underemployed.

4 comments

Write a comment
  1. NTHEOC
    NTHEOC 25 September, 2013, 19:48

    Some 240,000 California workers are in danger of losing hours (and the wages that go along with), according to a study by the UC Berkeley Center for Labor Research and Education, because of the new Obamacare mandate that employers with payrolls of 50 or more workers must provide health insurance to those working 30 hours a week or more.
    ——————————————–
    God forbid these companies have to provide a benefit to their workers!! These corporate pigs maximize profits off the workers so you damn right they need to provide some benefits. No doubt if a company has 50 or more workers, then those workers need to unionize!!!!!!! I hope the govt keeps a close eye on these companies that they comply or they need to be heavily fined!!!!!

    Reply this comment
  2. Queeg
    Queeg 26 September, 2013, 19:43

    It is quite clear you never sweated it out meeting weekly payroll…..

    Reply this comment
  3. Mike
    Mike 26 September, 2013, 20:33

    These numbers from EDD are all fudged. Unemployment in Calif is really a lot higher than EDD reports. There is only so much “stretching” of the actual numbers that they can get away with. Why ? you may ask – well if the top administrators at EDD want to keep their big fat salaries and gold-plated retirements, they better do everything possible to make the democrats running this state look good.

    Reply this comment
  4. Queeg
    Queeg 27 September, 2013, 17:34

    Your ruled……stop the constant whining…..win an election…appeal to voters…..pity……your doing a miserable job reaching voters with a positive image and message…..

    Reply this comment

Write a Comment

Leave a Reply


Tags assigned to this article:
Joseph PerkinsunemploymentJim TankersleyWonkblog

Related Articles

Feds give CA breathing room on bullet-train matching funds

There’s been another funding twist for the California bullet-train project. The Federal Railroad Administration has agreed to delay the due

Developer fees targeted by legislation as cities battle housing costs

Rent control is on the march in California, addressing years of leases that have increased to as much as 43

Elizabeth Emken: ‘It’s time to un-ring the Obamacare bell’

Note: This is the second in a series of profiles of the four major candidates for the crucial 7th Congressional