No Unemployment Relief for California Cities

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By Douglas A. McIntyre Published
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While the nation’s unemployment rate dipped to 6.1% in June, which was heralded as substantial progress, the jobless rate in several of cities in California is double, or even triple, this national number. Because of the dynamics of the economy in this region, that is unlikely to improve, even with the help of state or federal government programs.

The unemployment rate in El Centro was 21.1% in May. It has the unfortunate distinction of being the largest city in Imperial Country, which is at the center of the agricultural part of the region’s economy. Drought has battered the industry, which employs roughly half of the county’s residents. Forecasts have the drought in the area persisting for years, if water cannot be pumped in from other places.

Farther north, the unemployment rate in Yuba City is 13%. It is also an agriculture center. The jobs situation there has become so difficult that the largest employers in the area are now the state and local governments.

Merced, where unemployment was 12.5% in May, is not far south of Yuba City. Visalia-Porterville, where unemployment is 11.6% is close by as well, as are Hanford-Corcoran, where the unemployment rates is 11.2%; Modesto, where it is 11.1%; Fresno where it is 10.5%; and Stockton where the figure is 10.3%. Eight of the U.S. cities with the highest unemployment rates are located within this area. Several of these cities, primarily Stockton, have been part of the huge real estate collapse that happened throughout much of California, putting people in several industries, particularly construction, out of work.

The extent to which the problems these cities face are beyond what they can repair themselves is the extent to which unemployment will persist in them long term, well into this decade, and perhaps into next.

ALSO READ: The Best (and Worst) States to Be Unemployed

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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