The California Employment Development Authority announced on the 22nd that 14,300 jobs were cut in the Bay Area last December, and 52,200 jobs were lost throughout California. The United States lost a total of about 140,000 jobs in December, of which California accounted for 37%, more than one-third, of which, the Bay Area unemployment situation is also quite serious. Bank of America West chief economist Anderson (Scott Anderson) said, due to strict business and travel restrictions, the Bay Area labor market recovery stalled.
The California Employment Development Department reported that 7,800 jobs were eliminated in Santa Clara County in December, 6,700 jobs were lost in the San Francisco-San Mateo area, and the East Bay did relatively well, adding 1,100 jobs. Jeffrey Michael, director of the Center for Business and Policy Studies at the University of the Pacific, said that the surge in viral infections and homeownership orders have had a significant impact, with the leisure hotel and personal services industries being the most affected.
However, the technology industry is one of the few industries that performed well in December. East Bay technology companies added 2,800 jobs, the San Francisco-San Mateo area added 2,800 jobs and Santa Clara added 2,000 jobs.
Patrick Kallerman, director of research at the Bay Area Council Economic Institute, said the large reduction in tourism and restaurant jobs is troubling, with fewer blue-collar jobs and the disadvantage possibly starting to bleed into white-collar jobs. Other experts also believe that the technology industry alone, it is difficult to save the Bay Area unemployment frenzy. Wells Fargo senior economist Vitner (Mark Vitner) believes that even though the technology industry hiring increased, the overall employment rate in the Bay Area in December is still declining.
According to EDD and Riverside estimates, California and the Bay Area’s three major urban centers unemployment rate rose. December unemployment results compared to November.
California’s unemployment rate was 9 percent, up slightly from 8.1 percent in the previous month.
The East Bay unemployment rate was 9.3%, compared to 8.4% in January.
San Francisco-San Mateo unemployment rate 7.4%, compared to 6.7% in January
The unemployment rate in Santa Clara County was 7 percent, compared with 6.2 percent in January.
Analysts believe that the economy of the nine Bay Area counties does not seem to be able to recover soon. Anderson said that as long as the Epidemic and strict business restrictions remain, the Bay Area job market recovery will continue to stagnate. To make matters worse, the Bay Area’s outlook may depend not on the regional economy but on external factors, such as success in fighting the deadly new coronavirus. In his analysis, the outlook for the first half of 2021 will depend on the outcome of a tug-of-war between vaccination and a more contagious variant of the New Coronavirus.
State and local government officials’ blockade orders related to the new coronavirus are clearly having an impact on the job market. Taner Osman, research manager at Beacon Economics, said the economic shutdown to curb the spread of the virus, which came at the cost of job losses, is unlikely to improve much in January.
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