California 1 of 5 States With Worst Unemployment Rate

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FoxBusiness.com published this deansguide article 1-11-09
The Courier News member of the Chicago Sun-Times News Group published this deansguide article 1-11-09
Post Tribune member of the Chicago Sun-Times News Group published this deansguide article 1-11-09

California has 1 of the 5 highest unemployment rates in the country according to a new report from the Associated Press Ray Henry and Christopher Rugaber. The most telling factor is that each state has something in common “a heightened exposure to the root causes of this downward spiral.”

Factors in Common:

  • Housing collapse
  • Auto Industry implosion
  • Financial Services meltdown
  • Manufacturing decline

5 Worst States by Unemployment Numbers and Symptoms:

1. Michigan: Auto industry’s near collapse and uncertainty.

2. Rhode Island: Manufacturing decline and construction stoppages

3. South Carolina: Manufacturing decline, construction losses

4. California: Housing market implosion, lender meltdown, builder losses, foreclosures

5. Oregon: Timber industry hurt by housing stall

Real Estate’s Role in California’s Economic Woes:

A very telling fact is  California’s unemployment rate of  8.4%, third highest in the nation, has been primarily due to the collapse of the real estate market. Nothing surprising in that statement but “in the year ending in November 2008, 71 percent of the nonfarm jobs lost in California were housing-related.”

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