Drop in jobless leaves questions
California jobless claims fell last week, the first decline in several weeks as the state’s economy continues to limp toward full employment.
Workers filed 68,200 initial claims for unemployment benefits during the week ending Saturday, down 10,500 from 78,700 claims filed the previous week, the U.S. Labor Department reported Thursday.
California’s filings remain far above what was customary before government officials shut down businesses and other activities last year to combat the spread of COVID-19.
The state’s jobless claims represented more than one-fourth of all the claims filed in the U.S. in the same period, using comparable numbers that weren’t adjusted for seasonal variations.
Nationwide, jobless claims totaled 326,000, a decline of 38,000 from the prior week. The U.S. figures, unlike California’s, are adjusted for seasonal variations.
Using numbers that weren’t adjusted for seasonal volatility, unemployment claims nationwide were 258,900, down 41,400 from the prior week.
California’s most recent jobless claims represented a 26.3% share of all the claims filed nationwide, using comparable figures that weren’t adjusted for the seasonal variations. California accounts for just 11.7% of the nationwide labor pool.
Plus, the most recent jobless filings in California were 52% higher than what was typical just before the government-ordered lockdowns began statewide.
During January 2020 and February 2020, the final two months before the shutdowns started, unemployment claims averaged 44,800 a week in California.
Although California has posted sturdy job gains at times during 2021, the claims for jobless benefits remain above what economists and labor experts predicted for the current job market rebound.
For more than a month, analysts have attempted to determine — with no definitive answers — why workers have yet to race back to the job market despite plenty of hiring opportunities, according to Michael Bernick, an employment attorney and a former director of the state Employment Development Department.
“Employers throughout the state, especially in direct service, retail and hospitality jobs, report that they are not getting job applicants,” Bernick said. “Similarly, the state’s 45 local workforce boards report that they are not seeing an uptick in job seekers.”
Bernick has discussed the situation with the state’s workforce boards and the theories about the uneven job market.
The matter has baffled analysts since a $300 federal supplement that was being added each week to state unemployment benefits was terminated in early September. Experts had predicted workers would flock back to the job market once those benefits ended. That hasn’t happened, leaving an economic mystery.
“Savings that many Californians obtained through heightened government benefits during the pandemic, continued government benefits in rent assistance, CalFresh food stamps, and subsidized health insurance” were among the factors Bernick cited.
Bernick also said “ongoing health concerns” linked to the coronavirus might have chased away workers from the job market.