California's unemployment rate in June among highest in nation, federal data shows

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LAKE FOREST, CA - February 21: More than 75 employers were taking resumes and talking to prospective new hires at a career fair in Lake Forest, CA on Wednesday, February 21, 2024. (Photo by Paul Bersebach/MediaNews Group/Orange County Register via Ge (Paul Bersebach/MediaNews Group/Orange County Register via Getty Images)

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OAKLAND, Calif. - California has tied with Nevada with the worst unemployment rate in the nation in June, federal data shows. Is this a quirk or the beginning of a Golden State jobs drought?            

Four of the last six months have been "job loss" months for California. Weighed against the gain months, the state has lost an average of 1,100 jobs a month.

 That's a far dry from the past two calendar years when the state's average monthly gain was 25,000 jobs. 

"Today's numbers show California at the highest unemployment rate among all states," said Michael Bernick, the former director of the Employment Development Department. "We're actually tied with Nevada at 5.4%."

Bernick said this month's numbers are sobering. 

"We're getting further and further above other states," he said.

Only the non-state District of Columbia is higher, at 5.9%. 

All of this puts California, Nevada and D.C. unemployment well above the national average of 4.1%.

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How many jobs did California lose in June?

By the numbers:

In raw numbers, California lost 6,100 jobs in June.

Local governments also had job growth despite dwindling budgets. 

The big losers were private sector industries, including manufacturing, financial services, business and professional services.

Why this is happening is from a number of troubling issues, including tariffs and immigration. 

"But I think the main reason is the hiring obstacles that we've built up over the past couple decades that make hiring more costly, risky for employers, than in other states," Bernick said.

Tariffs and AI are actually stifling job growth. 

"Employers are freezing hiring, putting hiring in abeyance," said Bernick.

It's important to note that, though artificial intelligence can take away many jobs, California's innovation has been the engine that has and continuous to create new jobs in good times and bad.