County's jobless rate highest in 14 years

<p>Sonoma County's jobless rate hit 6.5 percent in November -- its highest mark in almost 14 years -- as the economic slowdown rippled through the labor market.</p><p>Job cuts have spread from construction, manufacturing and finance to businesses such as beauty salons, dry cleaners and pet grooming parlors, according to data released Friday by the state Employment Development Department.</p><p>The usual November spike in retail hiring didn't happen this year as stores braced for a decline in Christmas sales.</p><p>"Retailers are being very careful about adding more staff," said Ben Stone, director of Sonoma County's Economic Development Board.</p><p>Such seasonal hiring was well below the average for the past 18 years, said Devla Singh, a labor market consultant for the state.</p><p>About 17,500 Sonoma County residents were out of work last month, a 47 percent increase from November 2007.</p><p>The jobless rate was 4.5 percent a year ago, when 11,900 were unemployed.</p><p>Unemployment could hit 7 percent by February, said Robert Eyler, a Sonoma State University professor who heads the college's Center for Regional Economic Analysis.</p><p>Jobs are disappearing across a broader spectrum of the economy, he said.</p><p>"The recession is finally starting to show its face," Eyler said. "It's starting to trickle down across the board."</p><p>Consumers have less money for everyday services, including trips to the hair stylist, he said. High-end salons may downsize as consumers seek more affordable clips. "It doesn't mean you aren't getting your hair cut," he said.</p><p>Most sectors of the local labor market lost jobs from October to November, led by manufacturing, which was down 700 positions.</p><p>Construction, business services and tourism also cut back.</p><p>October unemployment was 6.2 percent.</p><p>November's jobless rate was the highest for any month since January 1995, when it reached 7 percent. And it was the highest mark for November in 16 years.</p><p>Still, Sonoma County's economy is in better shape than the rest of the state. California's unemployment rate, adjusted for seasonal factors, was 8.4 percent last month, up from 8.2 percent in October. The U.S. jobless rate was 6.5 percent in November.</p><p>Only five of the state's 58 counties -- Marin, San Mateo, Santa Barbara, Orange and San Francisco -- had lower unemployment than Sonoma last month.</p><p>"Relatively speaking, our diverse economy is holding up well," Stone said.</p><p>Unemployment rose to 7.9 percent in Mendocino County last month, compared with 6.7 percent in October.</p><p>In Lake County, 12.4 percent were jobless in November, up from 11.2 percent the month before.</p><p>The recession is driving record claims for unemployment insurance benefits in California. Nearly 81,000 new applications were filed last month, more than double the number from November 2007.</p><p>About 67,500 new claims were filed in October.</p><p>Last month, the federal government approved an emergency extension of jobless payments for workers who had exhausted their regular benefits.</p><p>The jump in joblessness comes as California's unemployment insurance fund teeters on the brink of insolvency. The fund is expected to have a deficit of $2.4 billion at the end of 2009.</p><p>To keep unemployment checks coming, the state may have to borrow from the federal government for only the second time since the program was established in the 1930s.</p><p>This story includes information from the Associated Press. You can reach Staff Writer Steve Hart at 521-5205 or steve.hart@pressdemocrat.com.</p>