Latest deceptive CA unemployment figures — and WHY they are deceiving
Here’s how deceiving our unemployment figures can be: 1. The California unemployment rate in December dropped a dramatic .2% in one month — from 7.2% to 7.0%. That is an IMPRESSIVE improvement. Except . . . 2. Number of net jobs added in California that month — a state with over 38,800,000 people: 700. No, I didn’t leave out a zero or two — SEVEN HUNDRED. Yes, a statistically insignificant 700 net jobs added, yet our state unemployment rate dropped a full two-tenths of a percent. How can this be?
You know the answer by now: Our lower unemployment rate for December is almost 100% due to people no longer looking for work, leaving the state, or retiring (a.k.a. the lower “labor force participation rate”) — even after counting the young adults entering the CA work force marketplace.
Here’s another unnerving aspect to consider: Our CA jobs grew by 700. But the jobs gained too often were low paying service jobs, while the… Read More