Calif. lagging behind as U.S. hiring booms

U.S. employers continued hiring new workers at a brisk pace last month, providing fresh evidence that the overall economy remains sturdy, but the new data showed that California is still looking like an underachiever.

California’s job growth has been trailing the national curve all year, and even though it made up some ground in January, the Golden State still lags behind when it comes to adding new jobs.

The state’s unemployment rate also continued a months-long run of exceeding the national average by more than a full percentage point. California’s most recent unemployment rate, for January, was 5.2 percent.

The national jobless rate went up slightly in February and now stands at 3.9 percent, marking 25 straight months in which the unemployment figure has remained below 4 percent.

Across the country, Friday’s report by the Labor Department said, employers added an unexpectedly strong 275,000 jobs last month, many in healthcare along with government and leisure and hospitality.

Still, the pace of hiring nationally has been moderating from even stronger levels last year, and wage gains slowed in February. With a cooling of inflation in recent months, the Federal Reserve is expected to begin reducing interest rates soon, easing financial conditions for businesses and consumers, especially new home buyers.

For California, Fed interest rate cuts can’t come fast enough.

California’s employment report for February will come out in two weeks. The January data released Friday offered a hopeful beginning to the new year: The Employment Development Department said employers statewide added 58,100 nonfarm jobs, a full one-fourth of the nation’s gains for that month.