Hopes Rise as Jobless Claims Fall
Encouraging news for economic recovery came in a package of falling jobless claims bundled with stronger consumer spending and higher new-home sales. The number of newly laid-off workers filing applications for unemployment fell by 35,000 last week to 466,000, the fewest new filings in 14 months, according to the US Dept of Labor. However, economists remain cautious about reading too much into those numbers. In addition to not factoring in those whose benefits have run out and the underemployed (who have given up job hunting or are forced to work part-time), jobless claims would have to remain below current levels for several weeks to signal renewed growth in employment. Some projections now calculate the national unemployment rate, currently at 10.2 percent, could hit 11 percent by mid-2010. The Federal Reserve estimates the jobless rate could stay elevated for several more years. Based on current population growth, the US would have to add 125,000 jobs a month to keep the unemployment rate from rising.
On the Job Front
BAY AREA – The GREEN (Green Regional Education & Employment in the North Bay) council has received a $1-million training grant from the California Clean Energy Workforce. The council, which is an assembly of North Bay workforce, education, business and nonprofit leaders, will use the funding to launch region-wide clean-energy job programs throughout Sonoma, Napa, Marin and Solano counties. Targeting laid-off construction workers, the goal of the program is to provide green-energy skills training to about 300 workers at each location.
FREMONT – When the New United Motor Manufacturing plant closes in April, its 4500+ workers will be eligible for an array of federally financed aid through the Trade Adjustment Assistance program: up to 130 weeks of unemployment compensation for those enrolled in state-approved job retraining (up to 26 weeks additional if workers require remedial education courses); an 80-percent tax credit on health insurance expenses; up to $6000/year for two years for older workers (age 50+) who take new jobs paying less than their previous salary.
PETALUMA – Friedman’s Home Improvement plans to return to the community, locating in the East Washington Place mixed-use development site. The new Friedman’s retail store will create 120 jobs and is expected to open in August 2011. In the development proposal for East Washington Place, which includes an anchor Target store, developer Regency Centers estimates the project will create 720 permanent jobs.
SAN FRANCISCO – Union demonstrators blocked Market Street last week, protesting city plans to lay off 500 public health and school-district employees. 24 parking-enforcement jobs are on the chopping block as well. Despite the Board of Supervisors approving $1.8 million to prevent layoffs of about 100 workers over the holidays, Mayor Gavin Newsom announced those job cuts will still take effect this week. Hundreds of other city workers will be reassigned and take pay cuts.
SANTA CLARA – World’s-largest email provider Yahoo is moving forward with plans for a 48-acre campus, which could house as many as 12,000 employees in the largest single real-estate development in the city’s history. The plans call for 13 six-story buildings, allowing the company to consolidate existing leased office and R&D space, and allow for future growth. Yahoo currently employs over 13,000, and has not divulged whether its headquarters will be relocating from Sunnyvale to the new campus as well.