California Recovers Millions of Jobs Lost During the Pandemic

In the state of California, unemployment rates have drastically decreased. In March, California reached less than 1 million unemployed people, which has not occurred since the beginning of the pandemic. Starting in March 2020,  job loss was much more prevalent. During this time, a stay at home order was put in place due to the pandemic. Within months, millions of jobs were lost. Since the start of the pandemic, it has been difficult to regain jobs. But within almost two years, job numbers have almost returned to where they were prior to the pandemic.

Recovery of Jobs

The U.S Bureau of Labor Statistics and the California Employment Development Department reported that “the state has recovered 2,463,4000 of those jobs lost during the pandemic, or 89.2%.” This report reflects good progress for the state and represents millions of new job openings and opportunities for California residents.

One of the main contributors to successful job recovery is the rising demand from consumers. The increase in demand is strongly due to the financial assistance received from the government. 

Increased Labor Shortage

Although the report regarding job recovery is good, there are other factors that must be considered. The increase in jobs is beneficial, but there is still a large labor shortage. Businesses continue to have high demand, yet are often unable to employ a sufficient number of employers to meet the demand. California has faced an immense amount of scarcity of workers. Due to this, employers must increase pay but in turn, inflation increases the cost of products. 

Since the pandemic, workers have had no urgency to return to work. Additionally, employers are in need of several employees which are all in high demand. For example, several restaurants are looking to hire employees with managerial skills or kitchen experience. But, because many restaurants closed and opened at the same time, all employers are searching for the same employees, resulting in great competition. 

Filing for Unemployment

An increasing number of people are filing for unemployment. Within the last week, California has contributed to nearly 20% of new unemployment claims in the United States. Although more people are filing for unemployment, the unemployment rate still decreased due to added jobs. The majority of jobs derived from the leisure and hospital industry.

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Area, N. B. C. B. NBC Bay Area. California Growth Continues in March Despite Labor Shortage. From