State jobless rate falls with help of temporary jobs

SACRAMENTO » A raft of temporary government jobs for the U.S. Census boosted California’s economic picture in August as the state added 101,900 jobs and saw its unemployment rate — now at 11.4% — fall below the high-water mark of the Great Recession for the first time since March.

But experts warned that other indicators — including new unemployment claims, consumer spending and job postings — still show the world’s fifth-largest economy has stalled with no quick recovery in sight.

California lost more than 2.6 million jobs in March and April as the government ordered businesses to close and people to stay home to slow the spread of the coronavirus, which has killed more than 14,700 Californians.

California has now regained nearly a third of those jobs lost, according to numbers Friday by the Employment Development Department. But the unemployment rate fell in part because the labor force has declined by nearly 800,000 people since February as parents are forced to stay home with their children and others have decided to go back to school to learn new skills in a challenging job market, said Sung Won Sohn, professor of finance and economics at Loyola Marymount University.

“The thing about this pandemic, we tend to talk about the averages and the jobless rate and how many jobs we have created,” he said. “It’s kind of like saying the average depth of the Mississippi River is 3 feet deep. But if you try to walk across, you could drown. And many small businesses are drowning.”

Of the 101,900 jobs added in March, more than 64% were government jobs. Most of those are temporary jobs for the U.S. Census while others can be attributed to local government hires as school started back, at least virtually. Not counting the government jobs, California’s private sector added 35,800 jobs.

California outperformed the nation as a whole, with its unemployment rate in August falling 2.1 percentage points compared to July while the national rate fell 1.8 percentage points to 8.4%. Six of the state’s 11 industry sectors gained jobs last month. But compared to August of 2019, California has lost nearly 1.6 million nonfarm jobs.