Monday, April 30, 2012

The California Unemployment Rate

The California Unemployment Rate is an astonishing 10.9% which is it's highest in 20 years.  The dilemma doesn't seem like it is getting any better and it seems the only way it will go down is if people start leaving the state.  The fact is, people are leaving in search for a better market.  California used to be the hub for jobs, but the problem is everything became too expensive.  People who are out of jobs probably aren't even looking as the notion of driving nearly 2 hours in traffic for a job that barely pays the bills seems depressing.  Gas prices alone are a deterrent from taking a job too far away.  California did nothing to keep companies from moving out of state.  For example, Nissan, a company that was headquartered in Torrance CA, moved it's headquarters to Tennesse about 6 years ago and many other companies did the same.  The sheer tax benefit of moving outweighed the cost.  All of this has had a ripple effect as home prices have dropped, construction has come to a halt which has knocked out thousands of jobs in the home industry.  The state has tried many band aids that haven't worked.  What will, I don't know but there has to be a dramatic change to shift the state in the right direction.