Update: Unemployment Keeps Rising

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In more grim economic news, L.A. County’s unemployment rate jumped in February to 10.9 percent from 10.4 percent in January, the highest rate in 17 years.

The county has continued to shed jobs in retail, manufacturing and construction, according to figures released Friday by the state Employment Development Department on Friday.

The county’s unemployment rate is now the highest since the July 1992 peak of 10.9 percent reached during the last major recession. It has surpassed the 10.8 percent level of February 1983.

A year ago, the unemployment rate in L.A. County was 6.2 percent. Since then more than 250,000 county residents have reported losing their jobs.

“This recession is very deep and it’s happening very fast,” said Nancy Sidhu, chief economist with the Los Angeles County Economic Development Corp.

Statewide, the unemployment rate rose to 10.5 percent in February from 10.1 percent in January. Nationwide, the February unemployment rate was 8.1 percent.

The county has lost 130,000 non-farm payroll jobs over the past year, a drop of 3.2 percent. Nearly 30,000 manufacturing jobs have disappeared, followed by 24,000 business and professional service jobs and 20,000 retail jobs. All are among the steepest annual declines ever recorded.

Among the only bright spots in February was the entertainment sector, which rebounded after losing jobs in January. Also, private and post-secondary education, and health care continued to gain jobs.

“Private education and health care continue to be the only pillars that are holding this economy up, and they may not last for long,” Sidhu said.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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