California Economic Recovery Stumbles, New Jobs Report Shows

Atlas is still shrugging.

At Los Angeles Times, "California employers drop 29,200 jobs in May."

California's employers halted hiring in May, shedding 29,200 jobs from payrolls in yet another worrying sign that the nation's economic recovery is foundering.

The state's unemployment rate fell to 11.7%, from 11.8% the month before, according to the state Employment Development Department, but the job losses are the most significant since September of last year. The unemployment rate can fall when the state loses jobs because people drop out of the labor force, either because they're frustrated or are leaving the state.

California has the second-highest jobless rate in the nation, after Nevada.

The jobs data comes among worrying signs in California and the nation. Home sales in California dropped 13.3% in May from a year ago, and prices dropped 10.4%. Stocks teetered this week amid renewed fears that Greece will not be able to service its significant debt burden. And debates in Congress led some economists to worry that the U.S. will default on its debt payments, which would create further financial problems.

Still, economists said the ups and downs in the job market are to be expected in a tepid recovery.

"This is completely consistent with what we expected in California — the recovery is going to be slow," said Bill Watkins, director of the Center for Economic Research and Forecasting at California Lutheran University.

Right.

To be expected, since this is the Obama Depression. They just don't call it that.