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Wednesday, July 1, 2009

Unemployment won't ease anytime soon



Roger Knecht looks for a job at the One Stop Center in Garden Grove in Orange County.
Roger Knecht looks for a job at the One Stop Center in Garden Grove in Orange County.ENLARGE
Roger Knecht looks for a job at the One Stop Center in Garden Grove in Orange County.
AP photo
After a brief, one-month dip in Nevada County's unemployment rate, the ranks of those out of work locally rose in May.

Across California, the government budget crisis is expected to continue to dampen the state's ability to bounce back from the recession, and unemployment will continue to expand, according to a leading economic report by the University of California, Los Angeles.

Nevada County's unemployment rate rose to 11.2 percent, up from 10.7 percent in April, according to preliminary figures released by the state's Employment Development Department. May's jobless figure matches a high reached in March, when the rate also stood at 11.2 percent.

In May, 5,530 people in Nevada County were out of work, out of a labor force of 49,350 people, EDD reported.

Statewide, unemployment for May stood at 11.5 percent; the national rate for the month is 9.4 percent, EDD reported.

If there is a silver lining to the figures, it's that those who are out of work can rest assured they'll still receive their unemployment benefits, which are not affected by the state's budget impasse.

“We would like to get the word out to people that, if they are unemployed, they will continue to receive their insurance benefits,” said Patti Roberts, spokeswoman for EDD. The department has received numerous calls from people asking whether the budget stalemate in Sacramento would stop jobless payments, she added.

Employers pay into an unemployment insurance fund, which pays workers who have lost their jobs. It is a federal program, and the state Employment Development Department acts as a conduit to disburse the checks, Roberts said.

State employees who have been laid off will continue to receive their unemployment checks as well, Roberts said.

California's employment picture is painted darker by the state budget crisis, according to a June report by the Anderson School of Management at UCLA.

“Overall, the forecast for California is for a very weak first two quarters of 2009, to be followed by very little growth in the last six months of the year,” UCLA reported on its Web site. “The economy will begin to pick up in 2010 and return to more normal levels of growth in 2011.

“The expectation is that total employment will contract by 3.5 percent in 2009 and will not grow in 2010. Once growth returns in 2011, it will rise at 1.8 percent.”

Unemployment benefits are generally good for up to 26 weeks. Early this year, President Barack Obama extended benefits for an additional five months.

The unemployment insurance program is administered by the U.S. Department of Labor under the Social Security Act.

To contact Staff Writer David Mirhadi, e-mail dmirhadi@theunion.com or call 477-4239.


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