California Tax Revenues Falter and Employment Breaks Historical Record.
California is still unable to find the key to job growth. Last Friday new data showed that the California unemployment rate broke through another record coming in at 12.2 percent. Data for August was revised upward to 12.3 percent. Good news right? Well the reason the unemployment rate fell in September was because thousands of Californians gave up looking for work. In fact, employers ended up cutting 39,300 jobs in September alone. The California budget situation is still in a fragile situation. The state has had to contend with $60 billion in budget short falls and already preliminary data shows the state is $1.1 billion behind on recent estimates. These estimates were done with pessimistic expectations and even then, they over estimated the amount of tax revenues they would be collecting.