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# Latest Deceptive California Unemployment Rate -- Why It is Deceptive
January 26 2015
Written by Richard Rider.
[](https://www.addtoany.com/share)
VOICES- *([Responding to CityWatch article ‘Bullish on the Golden Stage’)](https://ded2209.inmotionhosting.com/~citywa9/lead-stories-hidden/8281-bullish-on-the-golden-state-diversity-has-calif-economy-roaring-back)* Here's how deceiving our unemployment figures can be:
1\. The California unemployment rate in December dropped a dramatic .2% in one month -- from 7.2% to 7.0%. That is an IMPRESSIVE improvement. Except . . .
2\. Number of net jobs added in California that month -- a state with over 38,800,000 people:
700 net new jobs.
No, I didn't leave out a zero or two -- SEVEN HUNDRED.
Yes, a statistically insignificant 700 net jobs added yet our state unemployment rate dropped a full two-tenths of a percent. How can this be?
You know the answer by now: Our lower unemployment rate for December is almost 100% due to people no longer looking for work, leaving the state, or retiring (a.k.a. the lower "labor force participation rate") -- even after counting the young adults entering the CA work force marketplace.
Here's another unnerving aspect to consider: Our CA jobs grew by 700. But the jobs gained too often were low-paying service jobs, while the jobs lost paid far more.
From the same report:
"Largest growth sector was 8,300 jobs in Leisure and Hospitality (average annual wage $23,950); largest decline sector was 12,300 jobs in construction (average annual wage $57,100)."
Meanwhile our CA state and local taxpayer obligations for unfunded government liabilities is growing at a LOT faster rate. All factors considered, this is not a sustainable economic system.
NOTE: My source is the California Center for Jobs and the Economy (an email I received 1/23/15). The site is run by the eternally optimistic California Business Roundtable. But this latest report is so new that it's not yet up on their [website.](http://www.centerforjobs.org/)
***(Richard Rider is** Chairman of San Diego Tax Fighters.)*
-cw
{module \[1177\]}
CityWatch
Vol 13 Issue 8
Pub: Jun 27, 2015
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