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California returns to job growth in March, but unemployment rate remains highest in nation

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California returns to job growth in March, but unemployment rate remains highest in nation

For the second month in a row, California posted the highest unemployment rate in the country, according to new data for March. And it was one of only two states, the other being Nevada, with a March jobless rate above 5%, said the Bureau of Labor Statistics.

On the positive side, data released Friday by the state’s Employment Development Department showed that California’s job growth turned upward last month, though the improvement still lagged behind the national average.

California’s jobless rate remained steady at 5.3% last month, even as unemployment for the nation ticked down to 3.8% in March.

Over the last year, California’s employment growth has been lagging behind the nation as a whole, in large part due to the deleterious effects of high interest rates on three pillars of the state’s economy — high-tech, entertainment and housing.

Analysts say that near-term job growth in California is likely to remain comparatively weak, but prospects down the road look brighter.

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Despite the immediate hiring doldrums, the state’s budget woes — including costs for unemployment claims — and stubbornly high inflation, experts think California will not fall into a recession or lead the country into a downturn.

For one thing, the broader U.S. economy is continuing to expand nicely. The nation’s gross domestic product, or total economic output, likely expanded by a robust 3% in the first quarter, according to analysts’ forecasts. The GDP report will be released Thursday.

California’s greater reliance on sectors such as real estate that are highly sensitive to interest rates for financing and investing has hampered the state.

Even so, unlike the housing bust that brought on the Great Recession in 2007-09, most homeowners aren’t struggling with underwater loans as the overwhelming majority of them in California and the rest of the country are locked in at fixed rate mortgages that are considerably lower than the current rate of around 7%.

“In general, housing often functions as a trigger or force multiplier in a recession in California,” said G.U. Krueger, a longtime housing economist in Los Angeles.

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About 90% of homeowners, in fact, are carrying home loans with rates below 5%, said Joseph Brusuelas, chief economist at the accounting firm RSM US.

So even though more consumers in California are having trouble with credit card debt, data show mortgage delinquencies remain very low.

Moreover, while inflation has been stickier than hoped for, analysts still see overall consumer prices gradually coming down this year and expect the Federal Reserve to begin cutting interest rates this summer or fall, in what is likely to be the beginning of a series of rate reductions.

“California is going to muddle through until we begin to see those rates eased,” Brusuelas said.

In March, the state added 28,300 net new jobs — about 9% of the nation’s total, shy of its 11.5% share of the U.S. labor force. In February, California lost 6,600 jobs while the U.S. added 270,000.

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For the first quarter, California saw payroll job gains of 47,300, about 5.7% of the nationwide total.

Meanwhile, the state’s unemployment rate has gone up to 5.3% from 4.5% in March 2023, while the U.S. jobless figure has edged up to 3.8% from 3.5% during the same period.

In March, job growth in California continued to be led by gains in health services and private education. Over the last year, that combined sector has accounted for more than 80% of the state’s added jobs totaling 217,700. That’s followed by growth in government, construction, and leisure and hospitality.

But major sectors of the economy, including information, business and professional services and manufacturing, have lost jobs over the last year.

The state’s Employment Development Department report Friday continued to show a wide disparity in the unemployment rates by counties, with those in the Central Valley and some rural areas in double digits while the Bay Area and Orange County were below 4%.

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For Los Angeles County, the seasonally adjusted unemployment rate in March was unchanged at 5.4%. Over the month, the county added 14,900 jobs, about half the statewide total. The biggest gain of 6,200 was in health services and social assistance. But trade and transportation fell by 3,100 jobs.

Information businesses added 2,000 positions in March. But over the last 12 months, the high-paying sector is down 30,600 jobs in L.A. County — almost all of that due to losses in motion pictures, where employment has been very slow to rebound after the Hollywood strikes last year.

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Labubu maker Pop Mart is opening U.S. headquarters in Culver City

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Labubu maker Pop Mart is opening U.S. headquarters in Culver City

Pop Mart, the Chinese toymaker known for its collectible Labubu dolls, reportedly plans to open a new office building in Culver City as it seeks to expand its North American presence.

The 22,000-square-foot office will serve as Pop Mart’s new U.S. headquarters, according to real estate data provider CoStar, which earlier reported the deal.

Pop Mart, founded in 2010 in Beijing, is credited with fueling the frenzy over “blind boxes” — small, collectible toys sold in packaging that keeps the exact figure inside a surprise until it is unsealed.

The toymaker, which is publicly traded on the Hong Kong Stock Exchange, has nearly 600 physical stores across 18 countries, according to its September 2025 half-year financial report.

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Much of its recent growth has concentrated in the U.S. In the first half of last year, the company opened 40 new stores, including 19 in the Americas. In Southern California, it now has stores in Westfield Century City, Glendale Galleria, and Westfield UTC Mall in La Jolla.

The office building Pop Mart is moving into, named “Slash,” features leaning glass windows and a distinguishable jagged design. The 1999 building was designed by the Los Angeles architect Eric Owen Moss.

Pop Mart’s decision to root itself in L.A.’s Westside comes amid Culver City’s transformation from a sleepy suburb known for being the home to Sony Pictures Studios — to an urban hub, driven, in part, by the Expo Line station that opened in 2012.

Ikea recently announced plans to open a 40,000-square-foot store in Culver City’s historic Helms Bakery complex — its first in L.A.’s Westside — later this spring.

Big tech has played an important role in Culver City’s recent evolution. Recent additions include Apple, which has opened a studio and has been building a larger office campus; Amazon, which in 2022 unveiled a massive virtual production stage, and Tiktok, which in 2020 opened a five-floor office featuring a content creation studio. Pinterest has a new office in Culver City as of last month, according to the company’s LinkedIn account.

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After Warner Bros. merger, changes are coming to the historic Paramount lot. Here’s what to expect

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After Warner Bros. merger, changes are coming to the historic Paramount lot. Here’s what to expect

With Paramount Skydance’s acquisition of Warner Bros. expected to saddle the combined company with $79 billion in debt, Paramount executives are looking to do away with redundant assets including real estate — and there is a lot of that.

Chief in the public’s imagination are their historic studios in Burbank and Hollywood, where legendary films and television show have been made for generations and continue to operate year-round.

“Both of these studios are in the core [30-mile zone,] the inner circle of where Hollywood talent wants to be,” entertainment property broker Nicole Mihalka of CBRE said. “It’s very prime real estate.”

When Sony and Apollo were bidding for Paramount in early 2024, their plan was to sell the Paramount property, but there is no indication that Paramount would part with its namesake lot.

For now, Paramount’s plan is to keep both studios operating with each studio releasing about 15 films a year, but the goal is to eventually consolidate most of the studio operations around the Warner Bros. lot in Burbank in order to to eliminate redundancies with the Paramount lot on Melrose Avenue, people close to Chief Executive David Ellison said.

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A view of the Warner Bros. Studios water tower Feb. 23, 2026, in Burbank.

(Eric Thayer / Los Angeles Times)

Paramount would not look to raze its celebrated studio lot — the oldest operating film studio in Los Angeles — because of various restrictions on historic buildings there. Paramount also has a relatively new post-production facility on site and will likely need to the studio space.

Instead, the plan would be to lease out space for film productions, including those from combined Paramount-HBO streaming operations. Ellison also is considering plans to develop other parts of the 65-acre site for possible retail use, as well as renting space for commercial offices.

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The studios’ combined property holdings are vast, and real estate data provider CoStar estimates they have about 12 million square feet of overlapping uses, including their studio campuses, offices and long-term leases in such film centers as Burbank, Hollywood and New York.

Century-old Paramount Pictures Studios is awash in Hollywood history — think Gloria Swanson as Norma Desmond desperately trying to enter its famous gate in “Sunset Boulevard,” and other classics such as “The Godfather,” “Titanic” and “Breakfast at Tiffany’s.”

The lot, however, is a congested warren of stages, offices, trailers and support facilities such as woodworking mills that date to the early 20th century. The layout is byzantine in part because Paramount bought the former rival RKO studio lot from Desilu Productions to create the lot known today.

Warner Bros. occupies 11 million square feet and owns 14 properties totaling 9.5 million square feet, largely in the United States and United Kingdom, CoStar said. About 3 million square feet of that commercial property is in the Los Angeles area.

The firm’s portfolio also includes the sprawling Warner Bros. Studios Leavesden complex in the U.K. and Turner Broadcasting System headquarters in Atlanta.

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Paramount Skydance occupies 8 million square feet and owns 14 properties totaling 2.1 million square feet, according to CoStar. In addition to its Hollywood campus, Paramount’s holdings include prominent buildings in New York such as the Ed Sullivan Theater and CBS Broadcast Center.

Warner Bros. operates a 3-million-square-foot lot in Burbank with more than 30 soundstages — along with space for building sets and backlot areas — where famous movies including “Casablanca” and television shows such as “Friends” were filmed. Paramount’s 1.2-million-square-foot Melrose campus anchors a broader network of owned and leased production space, CoStar said.

Paramount’s lot is already cleared for more development. More than a decade ago, Paramount secured city approval to add 1.4 million square feet to its headquarters and some adjacent properties owned by the company.

The redevelopment plan, valued at $700 million in 2016, underwent years of environmental review and public outreach with neighbors and local business owners.

The plan would allow for construction of up to 1.9 million square feet of new stage, production office, support, office, and retail uses, and the removal of up to 537,600 square feet of existing stage, production office, support, office, and retail uses, for a net increase of nearly 1.4 million square feet.

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The proposal preserves elements of the past by focusing future development on specific portions of the lot along Melrose and limited areas in the production core, architecture firm Rios said.

The Warner Bros. and Paramount lots “are two of the most prime pieces of real estate in the country,” Mihalka said. “These are legacy assets with a lot of potential to be [tourist] attractions in addition to working studios.”

Hollywood is still reeling from previous mergers, in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.

Last year, lawmakers boosted the annual amount allocated to the state’s film and TV tax credit program and expanded the criteria for eligible projects in an attempt to lure production back to California. So far, more than 100 film and TV projects have been awarded tax credits under the revamped program.

The benefits have been slow to materialize, but Mihalka predicts that the tax credits and desirability of working close to home will lead to more studio use in the Los Angeles area, including at Warner Bros. and Paramount.

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“These are such prime locations that we’ll see show runners and talent push back on having shows located out of state and insist on being here,” she said. “I think you’re going to see more positive movement here.”

Times staff writer Meg James contributed to this report.

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How our AI bots are ignoring their programming and giving hackers superpowers

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How our AI bots are ignoring their programming and giving hackers superpowers

Welcome to the age of AI hacking, in which the right prompts make amateurs into master hackers.

A group of cybercriminals recently used off-the-shelf artificial intelligence chatbots to steal data on nearly 200 million taxpayers. The bots provided the code and ready-to-execute plans to bypass firewalls.

Although they were explicitly programmed to refuse to help hackers, the bots were duped into abetting the cybercrime.

According to a recent report from Israeli cybersecurity firm Gambit Security, hackers last month used Claude, the chatbot from Anthropic, to steal 150 gigabytes of data from Mexican government agencies.

Claude initially refused to cooperate with the hacking attempts and even denied requests to cover the hackers’ digital tracks, the experts who discovered the breach said. The group pummelled the bot with more than 1,000 prompts to bypass the safeguards and convince Claude they were allowed to test the system for vulnerabilities.

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AI companies have been trying to create unbreakable chains on their AI models to restrain them from helping do things such as generating child sexual content or aiding in sourcing and creating weapons. They hire entire teams to try to break their own chatbots before someone else does.

But in this case, hackers continuously prompted Claude in creative ways and were able to “jailbreak” the chatbot to assist them. When they encountered problems with Claude, the hackers used OpenAI’s ChatGPT for data analysis and to learn which credentials were required to move through the system undetected.

The group used AI to find and exploit vulnerabilities, bypass defences, create backdoors and analyze data along the way to gain control of the systems before they stole 195 million identities from nine Mexican government systems, including tax records, vehicle registration as well as birth and property details.

AI “doesn’t sleep,” Curtis Simpson, chief executive of Gambit Security, said in a blog post. “It collapses the cost of sophistication to near zero.”

“No amount of prevention investment would have made this attack impossible,” he said.

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Anthropic did not respond to a request for comment. It told Bloomberg that it had banned the accounts involved and disrupted their activity after an investigation.

OpenAI said it is aware of the attack campaign carried out using Anthropic’s models against the Mexican government agencies.

“We also identified other attempts by the adversary to use our models for activities that violate our usage policies; our models refused to comply with these attempts,” an OpenAI spokesperson said in a statement. “We have banned the accounts used by this adversary and value the outreach from Gambit Security.”

Instances of generative AI-assisted hacking are on the rise, and the threat of cyberattacks from bots acting on their own is no longer science fiction. With AI doing their bidding, novices can cause damage in moments, while experienced hackers can launch many more sophisticated attacks with much less effort.

Earlier this year, Amazon discovered that a low-skilled hacker used commercially available AI to breach 600 firewalls. Another took control of thousands of DJI robot vacuums with help from Claude, and was able to access live video feed, audio and floor plans of strangers.

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“The kinds of things we’re seeing today are only the early signs of the kinds of things that AIs will be able to do in a few years,” said Nikola Jurkovic, an expert working on reducing risks from advanced AI. “So we need to urgently prepare.”

Late last year, Anthropic warned that society has reached an “inflection point” in AI use in cybersecurity after disrupting what the company said was a Chinese state-sponsored espionage campaign that used Claude to infiltrate 30 global targets, including financial institutions and government agencies.

Generative AI also has been used to extort companies, create realistic online profiles by North Korean operatives to secure jobs in U.S. Fortune 500 companies, run romance scams and operate a network of Russian propaganda accounts.

Over the last few years, AI models have gone from being able to manage tasks lasting only a few seconds to today’s AI agents working autonomously for many hours. AI’s capability to complete long tasks is doubling every seven months.

“We just don’t actually know what is the upper limit of AI’s capability, because no one’s made benchmarks that are difficult enough so the AI can’t do them,” said Jurkovic, who works at METR, a nonprofit that measures AI system capabilities to cause catastrophic harm to society.

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So far, the most common use of AI for hacking has been social engineering. Large language models are used to write convincing emails to dupe people out of their money, causing an eight-fold increase in complaints from older Americans as they lost $4.9 billion in online fraud in 2025.

“The messages used to elicit a click from the target can now be generated on a per-user basis more efficiently and with fewer tell-tale signs of phishing,” such as grammatical and spelling errors, said Cliff Neuman, an associate professor of computer science at USC.

AI companies have been responding using AI to detect attacks, audit code and patch vulnerabilities.

“Ultimately, the big imbalance stems from the need of the good-actors to be secure all the time, and of the bad-actors to be right only once,” Neuman said.

The stakes around AI are rising as it infiltrates every aspect of the economy. Many are concerned that there is insufficient understanding of how to ensure it cannot be misused by bad actors or nudged to go rogue.

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Even those at the top of the industry have warned users about the potential misuse of AI.

Dario Amodei, the CEO of Anthropic, has long advocated that the AI systems being built are unpredictable and difficult to control. These AIs have shown behaviors as varied as deception and blackmail, to scheming and cheating by hacking software.

Still, major AI companies — OpenAI, Anthropic, xAI, and Google — signed contracts with the U.S. government to use their AIs in military operations.

This last week, the Pentagon directed federal agencies to phase out Claude after the company refused to back down on its demand that it wouldn’t allow its AI to be used for mass domestic surveillance and fully autonomous weapons.

“The AI systems of today are nowhere near reliable enough to make fully autonomous weapons,” Amodei told CBS News.

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