October 13, 2023
The low national unemployment rate can obscure much variation across the country. In every state, many communities continue to experience high unemployment. This problem is particularly visible in a large state like California.
In the second quarter of this year, the national unemployment rate was 3.5 percent. It was a bit higher for California overall, which had an unemployment rate of 4.5 percent. For several California cities, however, it was two or more times the state rate. Table 1 shows the 13 California cities with second-quarter unemployment rates at or above 9 percent. The unemployment rates range from 9 percent in Adelanto to a whopping 27.8 percent in Delano. Unfortunately, all of these cities are majority Latino.
High unemployment is not a temporary problem for these cities. All of them had similarly high annual-average unemployment rates in 2022.
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Table 1. Unemployment Rates for Selected High-Unemployment California Cities |
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|
City |
2022 |
2023 Q2 |
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Adelanto |
8.5% |
9.0% |
|
Brawley |
12.5% |
12.3% |
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Calexico |
23.9% |
24.8% |
|
Corcoran |
13.2% |
18.6% |
|
Delano |
19.9% |
27.8% |
|
Dinuba |
11.2% |
12.8% |
|
El Centro |
11.5% |
13.0% |
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Los Banos |
9.8% |
13.1% |
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Porterville |
10.9% |
15.0% |
|
Reedley |
14.0% |
17.2% |
|
Soledad |
10.4% |
10.3% |
|
Wasco |
12.5% |
15.9% |
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Watsonville |
10.3% |
11.5% |
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Source: US Bureau of Labor Statistics |
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A subsidized employment program, where the government pays for some or all of the labor costs for a period of time, coupled with a broader economic development plan, could help these cities participate in the nation’s period of low unemployment. These programs have been shown to be beneficial to workers, businesses, and communities. There is a long record of subsidized employment programs putting people back to work and helping disadvantaged workers reintegrate into the labor force. California should explore these models to improve the well-being of its people.
