California Unemployment Rate

The unemployment figures released today put the unemployment rate in California at 10.1%.  This is a dramatic increase from the 6.1% rate a year ago.

The Employment Development Department released the January numbers today which show the total number of unemployed California workers at 1,863,000.  Most of the job losses are due to layoffs in finance, housing, retail, and technology.  The trickle down effect causes more job losses all the way down the chain.

This bad news for the most populous state in the United States.  As one of the hardest-hit states in country with the housing crisis, this is adding fuel to the fire.

Having fewer employed workers will continue to cause havoc for the California housing industry.  While many parts of California have seen an uptick in sales activity, most industry professionals agree it’s an illusion caused by the lack of inventory.  The inventory is stuck in limbo as the major lenders across the country work to modify loans of their at-risk and defaulting customers.  The preliminary loan modification results show us that most of those homeowners are back in default within six months.