THE PUBLIC EYE: California’s Unemployment Problem
We're in the second month of what looks to be a prolonged recession. In this article I'll examine how this savage economic downturn has impacted California and what will likely happen. While the situation in California will be somewhat different from that in your state, it is informative to consider the largest state and it should be relatively straightforward to extrapolate to your situation.
The United States has a population of 331 million and a labor force of 165 million. The April 30th report indicated that there are 33 million unemployed (20 percent). (On March 23, St. Louis Federal Reserve president James Bullard warned the U.S. unemployment rate could hit 30 percent in the second quarter.)
California has 40 million residents and a labor force of approximately 18 million. Between March 15 and April 18, 3.4 million Californians applied for unemployment insurance (19 percent). According to the Public Policy Institute of California (https://www.ppic.org/blog/