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California Economy Will Be Slow to Recover, Study Says

Job seekers use computers to look for jobs at the Richmond Works One Stop Car...

Photo by Justin Sullivan / Getty Images

Above: Job seekers use computers to look for jobs at the Richmond Works One Stop Career Center July 17, 2009 in Richmond, California. California's unemployment rate reached 11.6 percent after 66,500 Californians became unemployed in June. The record unemployment rate is up 7.1 percent from one year ago.

— A new report on the state’s economy isn’t providing any good news on this Labor Day. The study says California won’t recover from the recession as quickly as most other states.

The report was compiled by the California Budget Project, an advocacy group for low and middle income earners. It shows that most of California’s workers are still having a tough time making ends meet during the economic downturn. It’s either because they’ve lost their jobs or they’re getting less pay. The Project’s Deputy Director Alissa Anderson says the study shows that the state won’t recover anytime soon...

“One thing that’s troubling is that so many forecasts show that California’s unemployment rate will continue to rise in 2010 and will remain in double digits at least through 2011. And, so I think we’re going to see a very weak job market for at least several years here in California," says Anderson.

Anderson says the federal economic stimulus program has helped California create some new jobs, but it’s still not helping too much. She says her group is urging Congress to extend unemployment benefits for people who’ve lost their jobs since the recession hit nearly two years ago. One hundred and seventy-eight thousand Californians will no longer be eligible to receive their unemployment checks by the end of the year.

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