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California Unemployment Rate Drops; Job Growth Still Weak

The latest unemployment figures show California employers created more jobs in September. But as Amy Quinton reports from Sacramento, economists say the report suggests that businesses are still hesitant to hire.

The state’s unemployment rate dropped from 10.6 percent to 10.2 percent, the second largest drop in the nation. But payroll jobs increased by just 8500 for September. The unemployment number is based on a survey of households rather than a more accurate check of businesses. Economist Esmael Adibi of Chapman University said businesses still face uncertainty.

“There are so many headwinds out there that they are worried about, one obviously is the election, the other one is the extension of President Bush’s tax cut, then there’s the fiscal cliff which is across the board cut in spending,” said Adibi.


The household survey shows the number of employed Californians increased almost 53,000 in September. Adibi said part of the discrepancy is because people are either underemployed or identifying themselves as self-employed.