By Don Thomson, The Associated Press
Sacramento, California. (AP) – CaliforniaThe state’s unemployed employment department reported on Friday that the unemployment rate had risen by about 1 percent in the past month, as more than 52,000 jobs were created in the state.
The unemployed rate is 9% for December, the state’s first monthly rate increase since April.
The leisure and hospitality sector took the biggest hit – down 117,000 jobs – with more than 80% in housing and food services.
Michael Barnick, a lawyer with the Duan Morris law firm and a former director of the California Department of Employment Development, said, “This area was affected by renewed lockdowns and virus outbreaks more than any other area.”
They were partially offset by 31,600 additional construction jobs and about 30,000 professional and professional services jobs, including tax preparation. Overall, six out of 11 industry sectors saw growth in the previous month.
California gained 5,200 jobs in November before 10 times that number last month.
44% of the 2.6 million nonfarm jobs lost at the onset of the epidemic have recurred, compared to 55.6% in March and April, as a household order continued during most holidays in the state with a mass holiday Coronovirus is applied during. Sung Won Sohan, a professor of finance and economics at Loyola Marymount University, said, “California’s playing with employment.”
Bernick said the gains in the construction work were surprising as there have not been very large commercial constructions in urban areas and many major public projects have gone on hold.
Sohan said lower interest rates, more people working from home and a desire for more space have fueled construction, while industries where employees can work remotely have prospered.
Neither man had high hopes for immediate relief from federal stimulus packages.
Bernick said the proposed $ 1.9 trillion plan by new President Joe Biden has been modeled after the Obama administration’s plan for the Great Recession, which still took months or years to invest in public works projects.
“The best incentives will come from vaccines. As they are widely distributed, the economy will get a bullet in the arm, ”Sohan quipped. This Friday’s analysis of California’s nonprofit Public Policy Institute shows that job recovery will be limited until the virus is released.
It is disturbing that more than 500,000 people have dropped out of the labor force in the last month, despite a slight increase last month, he said. Some are caring for children or the elderly during an epidemic or going back to school, but some may never re-engage the workforce.
Director of Employment Development Department, Rita L. Sainz, and the head of Gov. Gavin Newsom’s Department of Business and Economic Development, de Day Myers, contrasted the epidemic-driven recession with record-long job growth and records. The state was experiencing low unemployment a year ago.
“The numbers we see today reflect the challenges we’ve faced and the work that needs to be done,” he said, allowing employers and employees to “step up and protect each other.” Called upon.
Nevertheless, outrage came amid more allegations of bribes by the department and two state audits were issued the following week.
The department received more than 110,800 epidemic unemployment assistance claims last week under a federal program designed to help independent contractors, gig workers and self-employed.
It was high that the US Department of Labor said it accounted for more than a quarter of all such claims nationally, and critics feared it was more evidence of widespread fraudulent payments that Bank of America had Estimated the top $ 2 billion and some placed too much.
But there were complaints on Friday that the spurt was prompted by a change in the department’s online benefits page and faulty instructions to those who had already filed to “reopen your claim”.
Instead, those who push the button say it makes a new claim that is now being manually corrected for recipients to receive an additional 11 weeks of benefits approved by Congress in the form of a coronavirus relief package in December needed.
Department officials did not respond to repeated requests for comment or said how many would have been affected. The problem dates back at least one week.
The department sent guidance to Assemblyman Lorraine Gonzalez, saying that those who were waiting for the extension did not have to reopen their claims.
The department said there was “a second scenario” where some people whose claims were ineligible are still given the option online.
As per the guidance, “Our IT branch is currently working on a fix so that these individuals do not have the option to reopen their claims, as they are currently ineligible,” however, it is important to note that this Despite temporary disturbances, these individuals have not been given benefits. “
The department did not say on Friday whether the mess was fixed.
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