The administration's recent Unemployment Insurance (UI) Trust Fund forecast shows that UI benefit payments will exceed state payroll tax contributions by $1.1 billion in 2023. Historically, benefit payments have only exceeded contributions during major economic downturns. For the first time, the fund is expected to be out of balance during a period of job growth.
Despite worrying signs in some parts of the economy, the labor market remains steady. Seasonally adjusted weekly UI claims held steady over the last several months at between 40,000 and 50,000 claims per week. This level is in-line with UI claims seen during periods of sustained economic growth.
California lost 52,200 net jobs in December, as the pandemic surge slowed the leisure and hospitality sector.
A brief look at recent Unemployment Insurance claims and benefits.
In this post, we look at one unforeseen labor market shift that has important implications for the state’s fiscal picture: compared to past recessions, a larger share of workers who have lost jobs during the pandemic do not have children.
The California labor market collapsed in late March and early April due to the coronavirus disease 2019 (COVID-19) pandemic. In response to COVID-19, state and local officials took steps to limit the spread of the disease. The Governor issued a statewide stay-at-home order on March 19. Since that time, public health officials have issued various directives limiting daily activities. These efforts, as well as health concerns, depressed economic activity across the state. As a result, many employers cut jobs. In this post, we take a closer look at how the pandemic has affected different industries and different types of workers in California.
Observations on this week's unemployment insurance claims data.
Observations on this week's unemployment insurance claims data.
Observations on this week's Unemployment Insurance caseload.
Observations on this week's unemployment insurance caseload.
Observations on this week's unemployment insurance caseload.
Observations on this week's unemployment insurance caseload.
Observations on this week's unemployment insurance caseload.
Observations on this week's unemployment insurance caseload.
Observations on weekly unemployment claims data for California.