Sacramento, Calif. (AP) — Public school teachers and staff returned to the classroom in August, officials said Friday that the state added an additional 104,300 jobs to the march to solve an unprecedented pandemic job shortage. As mentioned in, it boosted an even more impressive month of employment growth in California.
Government work accounted for nearly 45% of California’s total employment growth in August, reflecting the beginning of the public school year and the multi-billion dollar federal pandemic bailouts poured into state and local governments.
Since February, California has created a staggering 110,600 new jobs per month, according to the California Employment Development Department. Nationwide, employers added 235,000 jobs in August. This means that 44% of those increases came only in California.
“There’s still more work to be done to regain the work lost in the pandemic, but this is a promising step forward for California’s economic recovery,” said Democratic Governor Gavin Newsom.
California has set a record for the number of new jobs added this year, but the data show that the state wasn’t enough to regain lost jobs. California’s unemployment rate, which was the lowest before the pandemic, is now 7.5%, the second highest in the country after Nevada.
This suggests that while California has added a lot of work, more people are still looking for it.
“The increase in employment wasn’t enough to explain the increase in the state’s workforce, so I think we need to create more jobs,” said the California employment market.
California lost so many jobs at the beginning of the pandemic, so it has so many jobs to get back. When Newsom issued the nation’s first state-wide coronavirus stay-at-home order, the state lost more than 2.7 million jobs in March and April 2020.
Since then, over 1.6 million of these jobs have returned, accounting for 62.1% of the losses. This suggests that many workers have not yet returned to their pre-pandemic jobs and explains why many employers report difficulty in finding enough workers.
The problem is most pronounced in the leisure and hospitality industry, with some restaurant operators struggling to keep up with demand.
Evidence is anecdotal, but suggests that some workers without family financial pressure have decided not to return to work in the hospitality industry for less than $ 20 an hour, Duane Morris said. Michael Bernick, a lawyer and former director of the State Employment Development Department, said the department.
“One scenario is for companies in these areas to shift to a business model that requires fewer workers. I’ve seen it before in California,” Bernick said.
The hotel and restaurant sector showed the largest increase in employment in California this year, but August data show that the pace of employment is slowing. The industry gained an average of more than 61,000 new jobs each month between February and July, and then added just over 33,000 jobs in August.
However, people can be motivated to return to work in September. The extended federal unemployment allowance ended earlier this month. That is, millions of Californians lost their weekly unemployment allowance because their qualifications expired.
The beginning of the school year drives the growth of work in California in August | WGN Radio 720
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