This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Calif. Unemployment Rate Falls Below 9 Percent

By JUDY LIN

SACRAMENTO, Calif. (AP) â¿¿ California's unemployment rate fell to 8.6 percent in May, marking the first time in nearly five years the jobless number has dipped below 9 percent, the state Employment Development Department reported Friday.

The drop in May â¿¿ a decrease of 0.4 percentage points from 9 percent in April â¿¿ puts California's unemployment rate at the lowest level since November 2008.

While California's rate continues to remain 1 percentage point above the national average of 7.6 percent, the state's improving labor market has narrowed the gap.

According to the U.S. Labor Department, California and West Virginia reported the largest declines in unemployment among all states. California also has seen the largest drop in unemployment among the states over the past 12 months.

State officials reported a non-farm jobs gain of 10,800 during May for a total gain of more than 767,000 since the economy began to rebound in February 2010.

Roughly 1.6 million Californians remain unemployed, down 364,000 from May of last year.

California hit a high of 12.4 percent unemployment for much of 2010 but has seen steady job gains since then. It now is tied with New Jersey for the sixth highest unemployment rate in the nation, according to the Labor Department. Nevada has the highest rate, followed by Illinois and Mississippi, Rhode Island and North Carolina.

In another indication of the state's reviving financial fortunes, the state Department of Finance on Friday released its monthly bulletin that showed tax collections in California running 1 percent, or nearly $1 billion, ahead of projections for the fiscal year.

The department said housing starts have accelerated while the prices of existing homes for sale have been rising.

The state reported there were nearly 18,000 fewer Californians receiving unemployment insurance benefits in May compared to the previous month, even though the number of new claims rose by 3,500.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs