California, Nevada Reach Record Unemployment Levels

Bloomberg reports:

By Timothy R. Homan

Sept. 18 (Bloomberg) -- Unemployment rose in 27 U.S. states in August, with California and Nevada reaching record levels of joblessness.

Rhode Island rounded out the list of states with the highest level of unemployment since data began in 1976, the Labor Department reported today in Washington. California’s unemployment rate reached 12.2 percent and Nevada’s climbed to 13.2 percent.

The job market is showing signs of stabilizing as reports indicate economic growth is resuming this quarter. Economists surveyed by Bloomberg News this month said the unemployment rate nationally will reach 10 percent this year, a reminder that consumers are unlikely to lead the recovery.

“There’s still a fair amount of weakness in some of the larger states,” said Steven Cochrane, director of regional economics at Moody’s Economy.com in West Chester, Pennsylvania. “State finances are probably going to be among the last of all the various components of the broad economy to turn around.”

The number of states with at least 10 percent unemployment fell to 14 from 15 as Indiana’s rate dropped below that threshold. The jobless rate nationally reached a 26-year high of 9.7 percent in August, the Labor Department reported earlier this month.

Unemployment in the District of Columbia also exceeded 10 percent for a fourth consecutive month, rising to 11.1 percent from 10.6 percent.

Michigan, the heart of the U.S. auto industry, continued to surpass all states with an unemployment rate of 15.2 percent in August, up from 15 percent. Nevada was second.

To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net