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Taking a look at the Bay Area's competitive workforce and the impact of AI
While the nation's unemployment rate is 4.2%, down slightly from a year ago, Californias rate, at 5.5%, is slightly up.
SAN FRANCISCO - Every year on Labor Day, we take a look at the state of employment and labor compared to one year ago.
This year, there are some dark clouds gathering even though the overall labor system in the U.S. is reasonably stable.
With tariffs and inflation causing rising concerns among Americans, it might be helpful to see where we were this time last year compared to now.
Employment data
By the numbers:
While the nation's unemployment rate is 4.2%, down slightly from a year ago, California's rate, at 5.5%, is slightly up.
"By historic standards, it's not high in the past half century, but it is well above the national rate of 2% and the highest of all states," Michael Bernick, former director of California's Employment Development Department, said.
Bernick says California's job growth has slowed significantly.
"We've gained about 82,000 jobs over the year," he said. "That's a pace of less than 7,000 jobs per month, which is well below the 20,000, the 26,000 jobs per month we were gaining in the previous year,"
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Among the hardest hit sectors of the workforce: white-collar positions including management, professional, business, legal and financial services.
‘Competitive for white collar jobs’
"I've never seen an environment like this," Bernick said. "It is so competitive for white-collar jobs throughout California, especially here in the Bay Area. I've never seen it this brutal."
As opposed to one year ago, artificial intelligence is cutting into white collar job availability with cutbacks and hiring freezes.
AI impact
"AI's impact, so far, if initial, are mainly in terms of entry-level jobs and thus, entry-level workers," Bernic said. "In one sense, you can say we have an overabundance of college graduates compared to the number of jobs available."
RELATED: California's unemployment rate in June among highest in nation, federal data shows
Contrast that with a resurgence of blue-collar employment.
"Both wages are increasing in our blue collar jobs, which is very positive, as well as the number of job openings," Bernick said.
Though healthcare jobs are still growing, government jobs, at all levels, that were growing a year ago, are now slowing or beginning cut backs.
Though the overall labor force is growing, it is at a much slower pace than last year.
The Source: Employment data and interview with Michael Bernick, former director of California's Employment Development Department,