Employers in California employers have added 41,400 new jobs in April, reducing the state’s unemployment rate to its lowest since the beginning of the pandemic.
The most populous state in the US has already regained more than 91 percent of 2.7 million jobs lost in the early stages of the pandemic in March and April 2020, when the government issued statewide stay-at-home order, forcing many businesses to close.
The labor force has increased by 111,800 in April.
This is seen as a positive indication for firms that have struggled to find workers to meet the rising demand for goods and services.
Sung Won Sohn, professor of economics at Loyola Marymount University said: “These are encouraging signs indicating that California’s economy is gradually returning to normal.”
However, there are some concerning indications on the horizon.
California’s job growth has been slower than it could have been, as seen by roughly 1.28 million job openings at the end of March.
Inflation remained high, with the state’s average gas price reaching a record level of $6.06 per gallon on Friday.
Home sales, which hit peak levels during the pandemic, have halted as mortgage rates have risen rapidly.
The incredible number of job losses in the first two months of the pandemic is one of the reasons California has been able to add so many jobs over the last year.
It has taken the state well over two years to recoup more than 90 percent of those job losses.
Nonetheless, new jobless claims in California stay high, accounting for roughly 24 percent of all new claims in the country.
The state contributes 11 percent of the US labor force.
The biggest population areas, Los Angeles and the San Francisco Bay region accounted for about 80 percent of job growth.
In April, eight of California’s industry sectors created new employment with the most significant rise in the leisure and hospitality industry, which was most struck during the pandemic due to limitations on public meetings.
However, the information sector generated 2,200 new jobs, bringing the industry’s total employment losses during the pandemic to zero.
Source: FOX 11