California Posts Unemployment Rate of 12.2% in August
The Labor Department reported on Friday that unemployment rose in 27 states in August, with California and Nevada reaching joblessness levels not seen since data started being compiled in 1976.
Just how bad are things right now?
California, which possesses the largest economy of any of the 50 states, posted an unemployment rate of 12.2% in August.
This, as mentioned, is the highest rate posted since the Labor Department started tracking such things in 1976.
I think that it's pretty safe to say that the unemployment rate in California hasn't been this high since the Great Depression.
California is responsible for about 13% of the total GDP of the United States, and would be the 10th largest economy in the world if they were an independent nation, according to the CIA Factbook.
The scary thing is that the "official" unemployment rate is the U-3 rate.
The U-6 rate, which is considered to be a broader measure of unemployment, includes people who have given up looking for jobs, as well as people who are working part-time jobs out of necessity, even though they would prefer full-time work.
It's safe to say that the U-6 rate in California is well over 20% - as a matter of fact, the Cali U-6 rate may be approaching 25% by this point.
It's pretty safe to say that there will not be a meaningful economic recovery in the US until states such as California start to experience dramatic drops in their jobless rates.
When is that coming? Who knows.
Source: Bloomberg.com - California, Nevada Reach Record Unemployment Levels