California job losses continue and could worsen

If California is to get out of this abyss, we must strike a workable balance between our health needs and our economic needs.

In California, new unemployment claims remain extraordinarily high according to labor lawyer and former EDD Director Michael Bernick.

"Though they're down slightly from the previous week, just for this most recent week, we still have nearly 280,000 new unemployment claims in California, way, way above what we were averaging prior to the pandemic," said Mr. Berncik.

And with new virus cases spiking, these numbers do not reflect the Governor's new closure orders this week.

"Up to now, as you say, we had a clear plan of re-opening various stages. So the first time, these stages seem to be halted and even some re-openings closed," said Bernick.

So, many recently hired or rehired folks are likely to be laid off again. And, says Bernick, more businesses who've hung on till now, may not be able to do so any longer.

"We may well see even larger numbers, even above this high number of 279,000 this week," said Bernick.

The largely untouched public center is now getting hammered.

"In May, the numbers showed the public sector to be the biggest loser of jobs," said Bernick.

Finally, people may be reluctant to spend in such uncertain times.

"New unemployment claims will increase, and for many employers, they've hung on, hung on, hung on," said Bernick.

At some time soon, continued lockdowns will have even more devastating effects unless the federal government comes up with a lot more relief, which is already delayed until late this month or early next.