Unemployment Rates in California Free Essay Example, 1500 words

The unemployment rates by major metropolitan areas are seen in the following table. Table 2: Metropolitan Areas Rate of Unemployment Metropolitan Region Percentage of Unemployment Bakersfield – Delano 16% Chico 14.2% El Centro 30.3% Fresno 16.2% Hanford – Corcoran 15.6% Los Angeles / Glendale 13% Los Angeles / Santa Ana 12.5% Madera – Chowchilla 15.3% Merced 18.9% Modesto 17.6% Napa 9.4% Oakland 11.8% Oxnard 11.3% Redding 15.6% Riverside – San Bernardino 15.1% Sacramento 12.7% Salinas 10.8% San Diego 10.8% San Francisco / Redwood City 9.4% San Francisco / Oakland 10.8% San Jose 11.5% San Luis Obispo 10.5% Santa Ana 9.8% Santa Barbara 9.2% Santa Cruz 11.4% Santa Rosa 10.8% Stockton 17.4% Vallejo – Fairfield 12.4% Visalia – Porterville 16.9% Yuba City 19% (Bureau of Labor Statistics, 2010) The area with the largest rate of unemployment is El Centro. The lowest geographical region is Santa Barbara at 9.2% making the median at 12.4% as of August 2010. The highest increase in unemployment is in mining and lodging and the largest decrease in unemployment is in construction. Reasons for Unemployment The changes in the economy within California have also led to the dramatic increases with the amount of unemployment that is currently occurring. One of the highest reasons is because of cyclical unemployment. The labor market fluctuations are causing this to occur at a rapid rate as well as from the recession that has occurred. The jobs are continuously moving in and out of demand as the economy fluctuates with companies being forced to downsize their corporations, then to move individuals back into employment as the economy changes into more demands. We will write a custom essay sample on Unemployment Rates in California or any topic specifically for you Only $17.96 $11.86/pageorder now The macroeconomy is contributing to this change as the demand for specific supplies continues to decrease, then slowly rises again. Individual companies are forced to move into cyclical unemployment because of the inflow rates that are occurring within the economy. When looking at the largest industries of unemployment, which include mining and lodging, information services and education, specific relationships to cyclical unemployment can be assumed. The amount of demand for mines, such as coal is decreasing with the recession. The amount of travelers is also decreasing because of the decrease in tourism and money available within individual households. The information services and professional services decrease also shows that there is not as much demand in the area of growing businesses that need extra services, specifically because of the relationship to the macroeconomy (Elsby et al, 2009).