Last month's employment figures are down but not a disaster

Latest jobs report shows hiring has slowed

The latest national job numbers are out and even though hiring has slowed, they tell quite a tale.

SAN FRANCISCO - Employment lawyer and former Employment and Development Director Michael Bernick says January's addition of 143,000 new jobs is less than half of December's super gain of 309,000 jobs.

"But, still a healthy number. So, it still shows the labor market is doing well," he said.

The national unemployment rate is at 4%, once considered by economists as full national employment.

"In fact, it's among the lowest levels over the past thirty or forty years. So it is a health if not as strong in the past lab or market report," said Bernick.

And what of the Trump administration's attempt to massively downsize the federal workforce? "The government has been one of the big sectors uplifting the payroll job growth numbers on 2024, especially these cuts on the federal government will have impact if they go forward," said the employment lawyer.

California's unemployment rate is already at 5.4%, is second highest in the nation, but would have been much worse if not for the post-pandemic stimulus funding. "And that funding, started basically in 2021, is now coming to an end; it's now winding down. So that's gonna have an impact," he said.

So, as much as any state and more than most, California is vulnerable to three issues that could upset the Golden State's economic apple cart. First, the aforementioned cut-off of stimulus. Second, deporting millions of undocumented workers, Third, the impact of tariffs, especially those imposed on the U.S. in retaliation for higher tariffs on them," said Bernick."

Mass federal government layoffs or terminations will surely increase California unemployment, slow port activity and a source of low-cost labor, critical to the state's economy.

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