The California Employment Development Department or EDD recently reported that California’s unemployment rate dropped slightly from 6.4% in May to 6.3% in June. This is still well below the US average unemployment rate of 5.3%, the lowest it has been since the economic crisis of 2008.
Economists have noted that California was much more severely affected by the recession beginning in 2008, especially in the construction and mortgage industry sectors. US unemployment peaked at 10.0%, but California’s unemployment rate peaked at a much higher 12.4%. It has taken much longer for us to come out of this recession than many other areas across the country.
The greatest growth in employment numbers, not only in month-to-month calculations but year-over-year as well were the leisure and hospitality market segments. Education and healthcare services continued to decline. Employment rates have had a substantial impact on the reporting and collection of California taxes.