More Good News than Bad in Calif.'s May Jobs Report
Published On : 6/23/2013 11:23 AM
From : CCN
Categories : Local, State
California’s new jobs numbers are out. They show a sharp drop in unemployment, but just modest new hiring from employers. As Ben Adler reports from Sacramento, it’s self-employment that’s driving the jobless rate down – which is good news for the state’s economy
California’s unemployment rate dropped from nine percent in April to 8-point-6 percent in May. Typically, during this sluggish recovery, economists often say drops in the jobless rate are due to people leaving the workforce. But this time…
“It seems like as people are coming back to the job market, the pace of job creation is stronger than that growth – that’s why unemployment is going down. And that’s good news.”
Chapman University economist Esmael Adibi says a rise in the number of people who say they’re self-employed offset slow payroll job growth. Businesses added just 10-thousand jobs last month – the same as the month before. But overall, the state labor force jumped by more than 90-thousand, thanks to the increase in freelancers, consultants and contractors. And that, Adibi says, is why unemployment dropped nearly half a point.