Decoding California's Unhealthy Labor Force: Beyond the Unemployment Rate
California’s official unemployment rate remained stagnant at 5.3% in September, signaling that over a million adults in the state seeking employment were unable to secure jobs. This data reveals an ongoing increase in job seekers, with 64,100 more individuals without jobs than the same period last year. According to California’s Employment Development Department, the state’s persistent high jobless rate is influenced by factors such as the number of job seekers and the size of the labor force. The labor force is defined as individuals aged 16 years and above who are either employed or seeking employment.
In the 1990s, California’s labor force participation rate was at a historical high of 68%, but it has since reduced to below 63%. Currently, the state’s labor force stands at around 19.4 million, 18.4 million of whom are working. The state also has a disproportionally high level of part-time workers and individuals who could potentially work but show limited interest in seeking employment. This coupled with the state’s decreasing labor force participation contributes to the high U-6 measure, indicating a problematic employment situation.
These ongoing issues create a challenge for employers struggling to find qualified workers despite there being over a million people theoretically searching for jobs. More nuanced measurements show that the employment situation is even more complex. The TRU, short for the “True Rate of Unemployment, is a measure advanced by the Washington-based Ludwig Institute for Shared Economic Prosperity, and offers a broader perspective on the state’s job scenario.
If you are among the unemployed, remember that there are organizations such as the Employment Development Department in California here to help you. Dealing with unemployment can be a challenging process, but resources and assistance are available. When trying to get through to EDD, remember that it is generally best to call early in the morning or late in the day when the lines are less busy. An effective way of getting a live person is reaching out via their public phone numbers or through their website, eddcaller.com. Patience is key, and persistence will pay off. It is crucial to remain informed and ready to communicate effectively with the EDD to receive the benefits you are entitled to receive.