California Unemployment Surges Higher

Statewide unemployment continued its rapid rise, hitting 8.2 percent in October, a 14-year high. Michigan and Rhode Island are the only states with higher joblessness, both at 9.3 percent. The Employment Development Department’s payroll survey showed a loss of 26,400 jobs last month, the worst decline since January. Trade, transportation and utilities posted the largest losses – 11,500 jobs. Manufacturing was down 5700. Over 100,000 positions have disappeared across California in the last 12 months. Educational and health services did the most hiring last month, adding 2400 jobs, and government employment was up 1200.

Congress Extends Jobless Benefits

With nationwide unemployment at a 14-year high, President Bush agreed to sign Congressional legislation extending jobless benefits by three months. Californians who have received or are about to receive their last unemployment check will now be eligible for another 13 weeks of support. Proponents of the legislation noted that without the extension, 1.2 million unemployed workers would exhaust their benefits by the end of the year. House Speaker Nancy Pelosi added, "With more Americans filing jobless claims than at any time since 1992, [passage of this] legislation will help speed relief to more than two million workers who continue to search for new jobs in these difficult economic times."

On the Job Front

NATIONWIDE – On the heels of 10,000 job cuts earlier this month, Citigroup Inc announced it will lay off an additional 53,000 over the coming months. The financial services company plans to reduce expenses by 20 percent.

BELMONT – Sezmi Corp laid off 20 workers, although the company president denied that the Internet and on-demand television services provider is facing problems.

ELK GROVE – The California State Automobile Association is eliminating 104 jobs from its office here by the end of the year. That will leave 317 employees staffing the office until its planned closure in early 2010.

FREMONT – Lam Research Corp will lay off 600 employees, 15 percent of its workforce. The cuts, which affect regular, temporary and contract workers, will save the chip manufacturer $60 million. . . LA-based Spot Runner Inc. is laying off 30 percent of its workforce. The advertising services company will focus on online marketing services firm Weblistic Inc, based here. Spot Runner bought Weblistic earlier this year.

LODI – Due to increased debt and decreasing patient loads, Lodi Memorial Hospital laid off 44 employees. The cuts, none of which were patient-care positions, are the first in over a decade.

MILPITAS – KLA-Tencor is cutting 900 of its 6000 worldwide employees. The semiconductor manufacturer will also delay annual increases for its executives.

OAKDALE – Sconza Candy Company completed a six-month renovation of the former Hershey candy plant and is now making sweet treats here, employing 130.

RICHMOND – American Honda Motor Co. will begin shipping 145,000 cars per year through the Port of Richmond. Port executives anticipate the deal will create 200 construction jobs and an additional 200 long-term positions.

SOUTH SAN FRANCISCO – Sluggish sales have forced Anesiva Inc to cut half its staff, 15 employees. Earlier this year, the pharmaceutical maker employed 123 workers.