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California adds jobs in May; economy shows signs of weakness

Posted at 2:31 PM, Jun 17, 2022
and last updated 2022-06-17 17:31:00-04

California's unemployment rate has fallen to 4.3% in May. That nearly matches the pre-pandemic rate of 4.1% in February 2020.

Employers added 42,900 new jobs in May.

However, Friday's report from the Employment Development Department is overshadowed by recent signs of a wobbly economy.

Inflation is at a 40-year high, stock prices have tumbled, and the Federal Reserve imposed the highest interest rate hike in nearly three decades.

Experts say California is more likely to be impacted by those changes than other states. That's because California's economy relies heavily on real estate and income derived from capital gains.

San Luis Obispo County's unemployment rate was 2.1% in May, down from 2.4% in April. In May 2021, it was 5.3%

In Santa Barbara County, the unemployment rate was 2.4% in May, down from 2.8% in April. It was 5.6% in May 2021.