State unemployment rises to 6.8 percent

June 20, 2008 10:39:56 PM PDT
New unemployment figures for California -- and it is bad news. We have one of the worst jobless rates in the country.

There are now 300,000 more Californians looking for work, than there were this time last year The number of people out of work in may jumped to 6. 8 percent, up from 6.2 in April.

Unemployment offices throughout the state are busier these days. Someone out of work is sitting at practically every computer there combing through job listing or using the customer service phones to inquire about their jobless benefits.

The unemployment rate soared to 6.8 percent last month. It was 6.2 percent last month and only 5.3 percent a year ago. California now has the fifth highest unemployment rate in the nation.

"They're surprising to all of us. They're unusually large. We haven't seen a one-month spike like this since our official series began in 1976," said Loree Levy, from the CA Employment Development Department.

The housing bust continues to dog the state's economy. The construction sector accounted for the most job cuts in the last year, shedding nearly 90,000 jobs. Financial Services is not far behind.

"A maximum claim is 26 weeks. We have seen a significant increase over the last year in the number of people exhausting their benefits and still haven't found a job," said Levy.

"I've been looking for the last six months," said Francisco Mondragon, who is unemployed.

With the former mortgage worker's unemployment benefits about to run out, the new numbers tell him he's got more competition for jobs.

"It means that prospects are pretty slim because a lot of people are in the same boat I am," said Mondragon.

And try looking for a job with no paycheck. Many workers are feeling desperate enough to look outside their field.

"I go days without gas. How am I supposed to look for work without gas?" said Marshall Garvatt, who is unemployed. "I can do virtually any kind of work. I don't care if it's heavy lifting work. I'll dig a ditch if I have to dig a ditch to make some money."

Some good news for those who've already exhausted their unemployment benefits, congress is on track to extending those checks another 13 weeks. It could head to President's desk as early as next week.


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