California Unemployment Reaches Double-Digits

The January figured was announced Friday by the state's Employment Development Department (EDD). In December, the mark was 8.7%. Last January California unemployment was 6.1%.

The January California unemployment is 2.5% than the January national jobless rate of 7.6%.

But it's more than just a percentage. As the country's most populous state, a 10.1% unemployment rate is far more serious than a similar rate would be in any other state.

Stephen Levy, senior economist for the Palo Alto-based Center for Continuing Study of the California Economy, said the last time California's unemployment reached double-digits was June 1983.

"They're confirming what we already know, which is that we're in a very, very deep recession that is going to last for many months."

Kevin Callori, a spokesman for the state's Employment Development Department said:

"There is continued weakness in housing-related sectors and we're also seeing weakness in consumer-related sectors. The credit crunch is making consumers less confident so that's affecting businesses in wholesale and retail trades.

"Basically about a third of the losses (over the past year) have been in consumer-oriented industries. Another third have been in housing and housing-related industries like construction and financial services."

This does not bode well for companies with discretionary or big-ticket items. As Callari notes, 1/3 of the losses ahve been in consumer-oriented industries. This would reflect on poor sales in electronics (including PCs and cell phones), cars, and the like. All items that have driven the economy globally.