California’s besieged restaurant and hospitality industry rose again in October, adding 66,000 jobs as unemployment in the country’s most populous state fell below 10% for the first time since the pandemic boosted its economy in March, but gains are likely to be short-lived. as an increase in cases has already led to new restrictions for businesses, including forcing most restaurants to stop indoor dining during the cold and rainy winter months. From Saturday, the state will enforce a curfew at. 22, which can further limit people’s leisure expenses. “With the renewed lockdowns, these jobs are in jeopardy now,” said Michael Bernick, an attorney and former director of California̵
California’s besieged restaurant and hospitality industry rose again in October, adding 66,000 jobs as unemployment in the country’s most populous state fell below 10% for the first time since the pandemic boosted its economy in March.
But the gains are likely to be short-lived, as an increase in cases has already led to new restrictions for businesses, including forcing most restaurants to stop indoor dining during the cold and rainy winter months. As of Saturday, the state will enforce a curfew at. 22, which can further limit people’s leisure expenses.
“With the renewed lockdowns, these jobs are in jeopardy now,” said Michael Bernick, a lawyer and former director of California’s employment development department.
In total, California added 145,500 non-farm wage jobs – with agricultural work excluded due to its seasonal fluctuations – as unemployment fell to 9.3% in October. It was the sixth month in a row of job growth after the state lost more than 2.6 million jobs in March and April due to a state home-to-home order prompted by the pandemic.
California has now got 44% of those jobs back, according to a report released Friday by the state employment development department. But the report shows that more than 1.7 million people are still out of work, an increase of more than a million from this time last year.
Meanwhile, data from Harvard and Brown universities show that California’s job losses are not evenly distributed, with the employment rate for jobs paying more than $ 60,000 a year falling by only 1.3% since January, while the employment rate for jobs paying below $ 27,000 per year, has fallen 28.1%.
“This line of error was present before the pandemic. It has grown during the pandemic, ”Bernick said.
Government Gavin Newsom’s administration has asked people to follow public health guidelines, a message undermined by Newsom himself when he attended a birthday party at an expensive restaurant in Napa County earlier this month. On Friday, Newsom’s Labor Secretary Julie Su took over the role of urging people to abide by them.
“California’s ongoing economic recovery depends on each of us doing our part,” Su said in a joint statement with Chris Dombrowski, acting director of the governor’s office for business and economic development. “How we choose to navigate interactions between the public and the workplace will have a direct impact on our loved ones, our society and our economy.”
While most accepted Newsom’s restrictions in March, his latest order has received pushback from many parts of the state seven months into the pandemic. Assemblyman James Gallagher, a Republican from Yuba City, said curfews and other new restrictions “will only further decimate struggling businesses that are already facing some of the toughest obstacles in the country.”
Newsom responded Friday by announcing a $ 175 million loan program backed by $ 75 million from the state. Named the “California Rebuilding Fund”, it will offer loans of up to $ 100,000 to small businesses, giving companies up to five years to repay the money with an interest rate of 4.25%.
“Ensuring small businesses have access to capital will help stimulate economic growth across the state,” Newsom said in a press release.
The fund was the most significant recommendation from Newsom’s glittering Task Force on Business and Jobs Recovery, which was led by billionaire Tom Steyer and contained harder than Apple CEO Tim Cook and all four former former governors. The working group ended six months of work on Friday by issuing a 27-page report outlining “principles” for the state to follow, including maintaining “California’s competitive advantage” and continuing to “support key workers.”
The job report is based on a survey conducted in the week of October 12th. Nine of the state’s 11 industrial sectors got jobs. The biggest gains were 66,000 jobs in leisure and hospitality, 35,800 jobs in professional and business services and 26,300 jobs in construction.
California continues to outperform the rest of the country in weekly unemployment benefit applications. While California accounts for approx. 11% of the country’s workforce, the state had more than 20% of the country’s unemployment claims last week.
Since March, California has paid $ 110 billion in unemployment benefits and processed 16.4 million claims. Many of these people have benefited from the federal government’s pandemic unemployment program, which extends unemployment benefits to people who are not normally entitled to them – including independent entrepreneurs.
An estimated 750,000 Californians could lose their unemployment benefits in December, as various federal government programs are expected to expire, according to an analysis by the California Policy Lab.