Employment Weakness Continues to Spread

Submitted by Rich Toscano on August 15, 2008 - 12:07pm

San Diego County shed jobs again in July, according to the EDD's latest estimates. As in the prior month, the problem wasn't that the housing-related sectors accelerated their decline, but rather that the non-housing sectors were unable to make up for housing's weakness as they had in the past.

continue reading at voiceofsandiego.org

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Submitted by EconProf on August 16, 2008 - 11:20am.

The recent unemployment news was grim for CA as well as San Diego. CA unemployment rate went from 5.4% one year ago to 7.3% in July. We had 3rd highest rate in the nation in July, don't know if we've climbed to second or first place now.
San Diego's rate of 6.4% is up from 4.9% one year ago.
Our lawmakers in Sacramento are now considering where and how much to raise taxes on the highest earning taxpayers (read: employers). Gee, that'll help our unemployment rate.
For those employers looking to relocate or expand, there's nearby Arizona. Their total state and local tax burden, as a % of personal income, ranks them 41st among states. (YumaSun.com)

Submitted by CricketOnTheHearth on August 19, 2008 - 5:02pm.

Re taxes:

I don't think taxes are the big driver of whether employers add employees or not; it is the business landscape. Are sales/revenues up or down, what are revenues projected to do in the future, can they cheapen their labor costs by having the work done overseas. This is the calculus my employer is doing right now. They are getting ready to lay a bunch of us off-- and they say it is because sales are down, no mention of taxes.

Even if you cut big business' taxes (and not all high income taxpayers are corporations, by the way), it does not incent them to employ more people... unless you structure the tax cut to give them incentive to employ them here.

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