Sunday, December 18, 2011

California Unemployment Rate Falls to 11.3 Percent! Break Out the Champagne!

I'm being facetious.

But I can't help it. Look at this ridiculously enthusiastic headline at the Los Angeles Times: "California's Jobless Rate Falls for Fourth Month in a Row! The State Unemployment Rate Declines to 11.3% in November, a Sign That the Labor Market is Slowly Recovering!"

That's the real headline. All I've added is the exclamation point! But seriously. You'd think it's HAPPY DAYS AGAIN! by the looks of the newspaper, and remember I still get the rag in hard copy!

And it only takes a quick glance at Google to see that the state's still mired in depression-like conditions in many parts for state, the California Central Valley, for example. See the Turlock Journal, "Good news, bad news in local unemployment rates":
The latest figures from the Economic Development Department reflect some good news for Stanislaus County and some not so heartening news.

Stanislaus County posted an unemployment rate of 15.5 percent in November, just slightly up from the revised October rate of 15.3 percent. This marked the third month in a row that the county has had an unemployment rate below 16 percent, something that has been a rarity during these troubled economic times.

A small uptick in November's unemployment rate hasn't been seen since November 2007, and bucks the trend of the past few years, said EDD labor market analyst Nati Martinez.

In November 2007, the unemployment rate went from 8.2 percent to 8.8 percent. In 2008, it rose from 11.2 percent to 12.1 percent in November. In November 2009, the rate grew from 15.9 percent to 16.7 percent and last year it jumped from 16.1 percent to 17.2 percent in the same time frame, according to the EDD.

Stanislaus County's November unemployment rate for this year was well below the year-ago estimate of 17.2 percent.

However, the gains reflected in the EDD's report are tempered by the fact that less people are reporting that they are looking for work. Stanislaus County's labor force, which stood at an estimated 237,300 in October, fell to 233,200.
I added the italics, since for all the "great" news about declining unemployment --- nationwide and in California --- the fact is huge numbers of people are discouraged and remain so unhappy about their prospects that they've simply given up looking for a job. When that happens, they drop off the statistics for the "active" labor force, and in fact the unemployment rate improves. As always, official unemployment statistics systematically undercount the unemployed.

More on all of this later. When the national unemployment rate falls to 6 percent I'll pop a bottle of champagne. And 8 percent in California would be worth a little celebration.

RELATED: At New York Times, "As Wars End, Young Veterans Return to Scant Jobs."

1 comments:

Jason Pappas said...

However, Donald, I fear that Obama may benefit from reduced expectations. Just getting the unemployment rate back to the level it was in Jan '09, when the failed "stimulus" bill was put forth will be seen as progress. Maybe Congress should be devious and pass another "stimulus" bill as Obama has asked. Just joking!