The Jobless Figure Tells the Story : First priority: Getting people back to work
There’s little cheer in the latest unemployment figures for California. The state’s jobless rate rose in November to the highest level in more than nine years, while the nation’s dipped for the fifth consecutive month.
The contrasts between the nation and state are stark: The number of Americans at work rose 1.3 million in the last 12 months, while employment in California dropped 139,000. California posted declines in eight of nine major employment categories and registered the biggest unemployment rate among 11 large industrial states. The result: The state’s unemployment rate rose to a dismal 10.1%.
A turnaround in California will take longer, and be more painful, than recovery in the rest of the country. The state, confronting the worst economic times since the Great Depression, faces another fiscal crisis amid a continuing decline in construction, taxable sales and home sales.
What’s more, the faceless statistics tell little of the human misery of coping with the uncertainty and depression of being unemployed. More jobs are on the line with the continuing retrenchment of the defense industry in California. Big companies such are General Motors continue with huge restructurings that include future plant closures and, of course, job losses.
Optimists interpret the latest national unemployment data as showing that the economy is recovering where it really counts--in the job market. But bear in mind that despite a year and a half of economic growth as measured by the gross domestic product, unemployment nationwide continued to deteriorate through much of the period, hitting an eight-year high last June before improving monthly since then.
President-elect Bill Clinton himself is cautioning the public that other recent upbeat economic news is not to be mistaken for a full fledged recovery. The quirky recession has sent recovery-like signals before, only to sputter out. Job creation was a major element in Clinton’s “Putting People First” campaign and it is sure to be a top priority at his economic summit this month.
A combination of factors has resulted in uncertain employment prospects in California. A concerted state and local effort is needed to replace lost jobs with new ones. The beginning of an individual’s confidence in the economy starts with gainful employment to support one’s family.
So the beginning of wisdom in economic policy is a program that puts jobs first. No priority is more urgent; no one economic statistic is more important than the joblessness figure.
Out of Work
Jobless rate as percent of work force, seasonally adjusted November ’92 California: 10.1% U.S.: 7.2%
