California unemployment ticks up 0.1% in November

SACRAMENTO, Calif. (CN) — California’s unemployment rate continued its slow, upward trend in November, hitting 4.9% — a 0.1% rise from October.

The state’s unemployment also rose by 0.1% from September to October. In November 2022, the unemployment rate was 4.1%, the state’s Employment Development Department stated Friday.

In November, there were 953,800 unemployed people in California. That’s an increase of 22,300 from October and a climb of 156,000 compared to November 2022.

There were 323,975 people who certified for unemployment insurance during a sample week in November. In October, 356,668 people certified. A year ago, 306,550 received certification.

The state processed 37,594 initial claims in the November sample week. That was a decrease of 3,115 from the October sample week, and a decrease of 10,227 from November 2022.

Imperial County remained the county with the highest unemployment rate at 18.7%. Colusa County was second at 11.4%, and Tulare County came third with 10.2%.

Conversely, San Mateo County kept its status as the county with the lowest unemployment rate at 3.3%. San Francisco and San Luis Obispo counties were tied at second with 3.5%. Marin, Napa and Sonoma counties were third with 3.7%.

California had 18,406,700 people employed in November. That’s a drop of 35,400 from October, and a decrease of 77,700 from November 2022.

There were 9,300 non-farm jobs added in November, making the total 18,158,500 that month. That came after a revised gain of 34,500 jobs in October.

California saw a 1.5% increase in non-farm jobs from November 2022 to November 2023. That’s compared to a 1.8% increase nationwide over the same period.

Farm jobs in the state grew by 14,200 in November, bringing the total to 442,900. There were 12,300 more farm jobs last month than in November 2022.

Six of the state’s 11 industry sectors gained jobs last month.

Private education and health services had the most, with 10,500 more jobs. That was due to better-than-average growth in nursing and residential care facilities, as well as social assistance groups.

Leisure and hospitality grew by 7,900 jobs; it now 25,800 more jobs than it did before the Covid-19 pandemic.

The information sector saw 1,900 more jobs in November, partially because of the Screen Actors Guild-American Federation of Television and Radio Artists’ strike ending.

The professional and business services sector lost 11,100 jobs last month, mostly because of losses in employment services; services to dwellings and buildings; and waste management and remediation services groups.

The November jobs report comes just weeks after state officials announced that California faces a $68 billion budget deficit, thanks to shortfalls in both the last fiscal year and the current one.

Officials learned about last fiscal year’s issue only recently, as many Californians had until October to file their state and federal taxes because of winter natural disasters. If the April tax deadline had held, that fiscal year’s $26 billion deficit would have been known months earlier.

When a forecast $14 billion deficit for 2023-24 is included, as well as an expected reduction in other spending, the total deficit reaches $68 billion.

In addition to the delayed tax receipts, reasons for the shortfall include a tighter monetary policy from the Federal Reserve and an economic slowdown in the state. Higher unemployment is also a factor.

About two weeks after the deficit revelation, the state’s finance department issued a letter to all department heads urging cost-cutting measures. The letter pointed to canceling all non-essential travel, purchasing only mission-critical or emergency vehicles and using all office supplies before ordering more.