“People behave differently based on new information, and it’s going to affect the job market,” said Sylvia Allegretto, labor economist and co-chair of the Center on Wage and Employment Dynamics at the University of California-Berkeley.
California’s unemployment rate remained at 7.6% in July, the second highest in the country tied with New Mexico and New York. But the rate probably hasn’t changed as another 56,600 people joined the workforce in July, a good sign that more people are looking for work. Allegretto said the rate of people leaving their jobs is higher, which you don’t normally see in a recession.
“Because so many jobs are available online at once, a lot of people quit their jobs and had to say, ‘Hey, I can get a better deal,’” Allegretto said. “I’m not surprised by any of this, and I think nothing is too disturbing at this point, when you put it in context with what’s going on.”
Up to 2 million people could lose their unemployment benefits next month when extended federal benefits expire. President Joe Biden said Thursday that some states could use federal coronavirus relief money to extend benefits themselves.
Newsom, the Democratic governor who faces a recall election next month caused in part by anger over his pandemic policies, said California added more new jobs than any other state in July. Newsom lifted nearly all restrictions on businesses in July, when cases were low as more people were getting vaccinated.