California unemployment climbs to 5.3% in August

SACRAMENTO, Calif. (CN) — California’s unemployment rate ticked up to 5.3% in August, matching Illinois for the third-worst jobless rate in the nation.

The Golden State bested Nevada, at 5.5%, and Washington, D.C., at 5.7%.

California’s unemployment rate has been largely static this year. It was 5.2% in January, climbing to 5.3% from February through April. It then returned to 5.2% for May through July.

The jobless rate stood at 4.8% in August 2023.

There were 1,020,000 unemployed California residents in August. That’s an increase of 11,300 from the prior month and a jump of 83,900 from August 2023, the state’s Employment Development Department said in its Friday update.

The state saw 382,640 people certify for unemployment benefits during an August sample week. That’s down from 400,294 people who certified in July. In August 2023, 397,757 people were certified.

Additionally, California processed 39,023 initial claims during last month’s sample week — a decrease of 2,903 from July, but up 1,049 from August 2023.

Imperial County had the worst unemployment rate in the state at 20.2%. Tulare County came in second at 10.3%, and Colusa County third at 9.2%.

San Mateo and Inyo counties tied for the lowest unemployment at 4%. San Francisco County slid into second at 4.1%, and Marin and Mono counties tied for third at 4.2%.

California had 18,362,700 employed residents in August, an increase of 8,700 people from July. However, it was down 27,800 from August 2023.

There were 18,091,000 non-farm jobs in August — a gain of 6,800 from the prior month. California saw 287,100 more non-farm jobs in August compared to a year ago, a 1.6% increase. The nation saw a 1.5% increase over that same time.

Farm jobs dipped by 1,100 from July to August, bringing the total to 416,500. The industry had 8,900 more farm jobs in August than it did a year ago.

Out of California’s 11 industry sectors, five of them saw job growth.

Leasure and hospitality gained the most with 6,800 jobs. Private education and health services saw 4,900 more jobs, with better-than-expected growth in ambulatory health care services and hospitals, as well as nursing and residential care facilities.

Local government had job gains, but state government lost 17,100 jobs. However, the government sector had 82,300 more jobs than this time last year.

The information sector lost 5,100 jobs. That was due to the motion picture and video production industry restructuring after last year’s Screen Actors Guild-American Federation of Television and Radio Artists strike.

Concerns over artificial intelligence and its use of artists’ voices and likenesses was one reason that led the union to strike. Governor Gavin Newsom responded to those concerns this week by signing two bills — one requiring contracts that detail the use of AI-generated replicas of a performer’s likeness or voice, and another to limit the use of digital replicas of deceased performers.