Shocker: California Economy Worsens – Unemployment Soars to 10.5 Per Cent

Despite the “Hope and Change” tour of President Obama, the California economy continues to sink.

California’s unemployment rate increased to 10.5 percent in February from 10.1 percent in January as the most populous state’s economy worsened, official data showed on Friday.

California’s February jobless rate far exceeded both the state’s 6.2 percent rate a year earlier and the national unemployment average for February of 8.1 percent, according to the report by the state’s Employment Development Department.

California lost 116,000 non-farm payroll jobs in February from January and 605,900 non-farm jobs from a year earlier, marking a 4.0 percent decrease in nonfarm payrolls, the report said.

The U.S. financial crisis has battered California’s economy, the world’s eighth largest, which already had been slowed by a prolonged housing downturn.

The report noted that only one industry category tracked by state labor market analysts expanded payrolls in February from January — 7,900 new information industry jobs.

Ten industry categories posted job losses between the months, led by construction, which shed 30,900 jobs.

And, the California State Budget even with federal economic stimulus dollars continues with massive $ Billion deficits.

No wonder the Govinator Ahnold is hugging the President.

Help!