California Created 31,700 New Jobs Last Month

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During October, California’s unemployment rate fell to 4.9 percent down from 5.1 percent a month earlier. According to the data availed by the Employment Development Department, California created a whopping 31,700 new jobs in October. The Golden State had also established new employment opportunities in September marking two consecutive months that California created new jobs since March. The state’s economic outlook has been somewhat slow since last year.

California has 11 significant sectors generating employment opportunities for its residents and over half of them created jobs last month. The sectors that led the wave of job creation include the leisure & hospitality sector, educational sector, and health services sector. The three areas created a total of 23,800 jobs. Other areas that churned out jobs include the government, construction and trade, transportation, and utility sectors. However, the information and manufacturing areas slashed jobs.

Regionally, Southern California employers created a significant number of jobs. For instance, over 12 thousand new jobs were generated in the Inland Empire, and L.A County created an additional 300 jobs. Riverside and San Bernardino counties produced a notable number of jobs which economists attribute to the affordable cost of housing as a result of the adverse impacts of the recession. Economists sensationally claim that the high cost of housing is at the center of the current downturn.

Northern California also saw the creation of new jobs in October. Particularly San Jose metro area which experienced job losses in August and September added over five thousand jobs in October. The development was welcomed by economists including Lynn Reaser who claims that she was worried that the high cost of housing could adversely impact the creation of new jobs in Northern California. Reaser is the chief economist of the Fermanian Business & Economic Institute. Apparently, all economists share the same sentiments that job creation could be stronger if the cost of housing were affordable.

Michael Bernick, former director of the employment department, was delighted to hear that California was recovering well from the downturn that has gripped the Golden State since last year. Bernick, who is now an attorney at a law firm in San Francisco, is optimistic that California will create more jobs for its residents. He stresses that since the jobs created in October cut across many industries, the momentum is likely to remain for some time. He referred to the October occurrence as the third largest after World War II.

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