Prop Zero
The Starting Point for Commentary and Coverage of California Politics

California's Economy Turning the Corner

View Comments (
)
|
Email
|
Print
California's Economy Turning the Corner

AP

Photos and Videos

Orange County Business Hiring

American Residential Services is adding 50 jobs over the next year.

Former Hotel Workers Demand Their Jobs Back

Former Hotel Bel-Air employees say they were abruptly laid off when the hotel closed for a renovation project in 2009.
More Photos and Videos

It's a baby step, but still a step in the right direction: California's unemployment rate fell to 11.9 percent in September from 12.1 percent in August. In the process, the state added 11,800 jobs, bringing the total for 2011 to just under 140,000.

These numbers are hardly robust, but they suggest the possibility that California is climbing out of the economic hole the state has occupied for the past three years.

Over that time, the state budget has been pared by one-third, forcing drastic cuts in every area from public education to in-home services for the aged and infirm.

Local governments have been hit particularly hard as well. Still, the new employment data couldn't come at a better time because time is not on the side of the state budget.

The budget for the 2011-2012 fiscal year calls for revenues of $4 billion more than the amount anticipated by the Legislative Analyst.

Revenues for the first three months of the fiscal year are $700 million below those projections, leaving many to fear massive cut-backs beyond the massive cut-backs that have already taken place. You can't spend money if you don't have it because California, unlike the federal government, must operate with a balanced budget.

But for the moment, there is a glimmer of hope.

Each one of those new employees is collecting a pay check, which means that most will be paying state and local taxes. Moreover, many of these new employees will no longer be collecting unemployment, which reduces the state outlay.

Of course, one month is just that--one month. California's unemployment rate remains stubbornly high, in fact the second highest of the fifty states. But at least there's some hope, and these days, we'll take all the hope we can get. 

Let us know what you think. Comment below, send us your thoughts via Twitter @PropZero or add your comment to our Facebook page.

Related Topics Economic Recovery, Jobs, California
Leave Comments