California's Unemployment Rate Hit 11.6 Percent in June

Share |
(Sacramento, CA)
Friday, July 17, 2009

California's unemployment rate remained unchanged in June from the previous month at 11.6-Percent.    And, an analyst says the state budget impasse isn't encouraging economic growth.

Capital Public Radio's Steve Shadley reports...

California lost nearly 67-thousand jobs last month. 
At least one expert says the numbers show that the state is still mired in the recession.   Esmael Adibi is the chief economist at Chapman University in Orange County.  He says the state budget crisis makes it hard to predict when California's economy will turn the corner... 
"Unfortunately we're not seeing any promising developments coming out of Sacramento.  We don't have a budget yet and we know that whatever we get is probably going to include more spending cuts and maybe higher taxes.  Both of those are added pressure on businesses and individuals and consequently job creation..."
Adibi says unemployment typically goes up slightly in the summer when more students and recent college graduates are looking for work.  California's jobless rate is the sixth highest in the nation.  Michigan takes the top spot at 15.2 percent.  The national rate in June was 9-and-a-half-percent.