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How can Southern California unemployment and hiring both be rising?

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How can Southern California unemployment and hiring both be rising?


Southern California’s job market is a very mixed picture: Unemployment in June was the highest since 2022’s start, though the last time hiring was faster was in early 2023.

My trusty spreadsheet reviewed non-seasonally adjusted jobs data for Los Angeles, Orange, Riverside and San Bernardino counties released Friday, July 19 from California’s Employment Development Department.

Let’s start with the region’s unemployment rate, which ran at 5.4% in June – up from 4.6% the previous month and 4.7% a year earlier. Unemployment in June was 5.9% in LA County, 5.3% in the IE and 4% in Orange County.

The last time the region’s joblessness rate was higher was January 2022 when it ran 5.6%. But unemployment typically rises in June as many government educators start their summer breaks.

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Yet, this year’s 0.8 percentage-point jobless increase from May is larger than the average 0.5-point increase in the same period in pre-pandemic 2015-19. It’s one hint of a seemingly cooled regional job market in recent months.

Unemployment trends are compiled from a survey of households. When government researchers asked employers about staffing, however, a more optimistic picture appears.

Bosses in Southern California had 8.02 million workers in June – an increase of 22,800 in a month and up 115,100 over 12 months. This hiring equals 1.5% job growth in a year – the swiftest pace since January 2023. The Inland Empire had a 1.9% increase, Orange County was up 1.4% and Los Angeles County rose 1.3%.

Remember, the Federal Reserve is using higher interest rates to slow an overheated economy. In addition, various uncertainties – including national politics – can be unnerving. So, numerous employers and shoppers are trimming expenses.

But stubborn inflation continues to wallop household budgets. That may be pushing some folks back to the job market. Southern California’s workforce – a metric combining the employed and the unemployed – is growing at its fastest pace in eight months.

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The four-county region’s job market, by key industry niches …

Private Education/Health: 1.53 million, off 9,400 in a month and up 80,100 in a year.

Business Services: 1.12 million jobs, up 400 in a month and off 11,100 in a year.

Hospitality: 975,700 jobs, up 3,600 in a month and up 13,700 in a year.

Government: 1.05 million jobs, up 6,600 in a month and up 26,400 in a year.

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Retail: 730,100 jobs, up 2,600 in a month and off 400 in a year.

Manufacturing: 566,300 jobs, up 2,500 in a month and off 9,300 in a year.

Transportation/Warehousing/Utilities: 457,200 jobs, up 3,000 in a month and up 8,700 in a year.

Construction: 376,400 jobs, up 3,600 in a month and up 1,800 in a year.

Financial Activities: 359,400 jobs, up 1,500 in a month and off 700 in a year.

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Wholesale Trade: 352,000 jobs, up 5,300 in a month and up 1,400 in a year.

Information: 222,100 jobs, up 3,800 in a month and off 600 in a year.

And the hiring patterns, by metropolitan area …

Los Angeles County: 4.60 million jobs, up 11,700 in a month and up 60,200 in a year.

Orange County: 1.71 million jobs, up 5,400 in a month and up 23,800 in a year.

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Inland Empire: 1.71 million jobs, up 5,700 in a month and up 31,100 in a year.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

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California

California DOJ cracks down on hospice fraud. Takes shot at Trump Administration

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California DOJ cracks down on hospice fraud. Takes shot at Trump Administration


From one crackdown on hospice fraud to another.

A few weeks ago, the FBI arrested multiple people in Southern California that were accused of defrauding the government for millions of dollars.

In a more recent announcement last Thursday, California’s State Attorney General Rob Bonta held a press conference to announce a fraud bust of their own.

“Operation Skip Trace uncovered and ended a hospice fraud scheme that defrauded Medi-Cal of $267 million,” Bonta said. “So just to be clear, a quarter billion dollars over funds that are paid for by California taxpayers, funds that are meant to provide care to Californians in need. It is unacceptable. It is illegal and we will not stand for it.”

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The operation saw a total of 21 suspects charged as a result and dismantled a major hospice fraud scheme, with two handguns and over $750 thousand in cash seized as well.

According to the state’s attorney general, this is just one of the many cases over the years the state has cracked down on.

“This is just the latest example of the California DOJ’s longstanding ongoing and successful efforts to combat hospice and medical fraud,” Bonta said. “We have been doing this work for years. We’ve been doing it successfully before certain people in this country decided to think about it for the first time. We will continue to do this work. Heads down, sleeves rolled up, important investigative work, prosecutorial work.”

He added to that by taking a shot at the Trump Administration’s latest fraud operations.

“While healthcare fraud might be President Trump’s shiny new political talking point, the California DOJ has been going after healthcare fraud since 1979,” Bonta said. “For decades, Trump is late to the party. Protecting taxpayer dollars and protecting programs sick and vulnerable Californians rely on have been our priority for nearly five decades.”

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Governor Gavin Newsom also spoke out about this latest crackdown while taking a shot of his own at President Trump.

In a post to “X” the Governor’s Press Office wrote in part quote…

“California has been cracking down on hospice fraud long before Trump gutted oversight and pardoned the architect of the biggest health care fraud scheme in U.S. history.”

State Republicans have responded to this latest announcement from Attorney General Bonta, calling for a special session to demand accountability from the Governor on widespread fraud.



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Xavier Becerra surges in poll after Eric Swalwell drops out of California governor’s race

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Xavier Becerra surges in poll after Eric Swalwell drops out of California governor’s race


A new poll shows a major shift in the California governor’s race after former Rep. Eric Swalwell, who was once a frontrunner, dropped out of the election following several allegations of sexual misconduct.

“This definitely throws this race into even more volatility, creates a huge vacuum,” Pomona College politics professor Sara Sadhwani said. 

According to the new numbers, Xavier Becerra, the former state attorney general and Health and Human Services Secretary under President Biden, is surging in popularity. 

In Emerson College’s Inside California Politics poll, Becerra is now polling at 10%, a seven-point jump since March.

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Republican Steve Hilton remains in the lead with 17%, followed by Riverside County Sheriff Chad Bianco at 14%.

Among Democrats, billionaire Tom Steyer leads the pack with 14%, followed by Becerra and former Rep. Katie Porter at 10% each. San Jose Mayor Matt Mahan sits at 5%.

The poll showed that 23% of voters remain undecided.

“Xavier Becerra should be the happiest of them all because he’s the biggest move in this survey,” said Zev Yaroslavsky, director at UCLA’s Luskin School of Public Affairs.

Emerson College conducted the poll right after Swalwell dropped out of the race and President Trump endorsed Hilton.

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“I believe over time, because Trump has endorsed Hilton for the governorship, that Hilton will continue to edge up and Bianco by definition will have to go down,” Yaroslavsky said. 

Last weekend, the California GOP held its convention, and, similar to the Democrats, the party did not make an endorsement. However, Bianco received the most votes from the GOP delegates.

“We’re extremely happy with how it came out,” Bianco said. “There was a lot of effort put in by my opponent. Hundreds of thousands of dollars to try and win this election.

With the large number of undecided voters, Yaroslavky believes that the race is still in the air. 

“It’s still early,” Yaroslavsky said. “It’s a little less than seven weeks before the election. The ballots go out at the beginning of next month. People, at least 30%, still haven’t made up their mind.”

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In the state’s primary system, only the top two vote-getters in the June primary will advance to the November general election.   



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Here are the candidates in the running to be California’s next governor

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Here are the candidates in the running to be California’s next governor


The race to replace California Gov. Gavin Newsom, who terms out after this year, is ramping up with voters able to cast ballots soon.

The stunning collapse of Eric Swalwell’s campaign has upended the wide-open contest where no Democratic candidate has emerged as a clear frontrunner and mail-in voting is scheduled to start in May

California has an unpredictable top-two primary system that puts all candidates on one ballot, with only the top two vote-getters advancing to November, regardless of party. Despite their party’s dominance in the state, Democrats fear their crowded pool of candidates will divide the party’s vote and allow two Republicans to advance.

Here’s a look at the prominent candidates:

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