The California Legislative Analyst’s Office recently released preliminary unemployment data for December, highlighting a struggling jobs market in the state. According to the data from the U.S. Department of Labor, California’s unemployment rate increased to 5.5% from 5.4% in November. The state-funded, nonpartisan Legislative Analyst’s Office analysis also noted a minimal growth in state employment, with approximately 3,000 new workers and 6,000 workers becoming unemployed. The state now has the second-highest unemployment rate in the U.S., only behind Nevada.

Principal Fiscal & Policy Analyst at the Legislative Analyst’s Office, Chas Alamo, explained that approximately 3,000 workers entered California’s labor market, but an additional 6,000 workers reported being unemployed. This signifies a surge in unemployment rate, which is approximately 45% higher than in September 2022, when the rate was only 3.8% amid post-pandemic recovery. Economic challenges faced by the state extend beyond the wildfires, including potential impacts from Trump administration cuts to federal spending in California or tariffs.

Sarah Bohn, Vice President and Director of the PPIC Economic Policy Center, also highlighted a decline in the labor force participation rate, which has fallen 5 percentage points (from 67% to 62%) in the last two decades due to the aging of California’s population. With the expectation that by 2030, one in four Californians will be 60 or older, a declining number of working individuals will be left to support state benefits for a growing population of retirees, which could further stress the state budget in the future.

If you need assistance with California’s unemployment benefits and are unsure how to get through to EDD, visit eddcaller.com. The website is designed to help users navigate through the EDD system, and provide useful information to address your issues about unemployment benefits, eligibility, and claims. Eddcaller.com also provides a platform for discussing different topics related to EDD, which can be a useful resource for individuals experiencing similar situations.