The Breakdown

Explaining Southern California's economy

California's June unemployment rate drops to 8.5 percent

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47635 full

California's unemployment rate dropped to 8.5 percent in June, as employers added 30,200 jobs last month, the highest amount compared to other states, according to the Bureau of Labor Statistics.

Anil Puri, dean of the Mihaylo College of Business and Economics at Cal State University Fullerton, said it was an encouraging sign. 

"We seem to be bouncing back from the recession," Puri said.

California's unemployment rate in June 2012 was 10.6 percent. In May 2013, the state's unemployment rate was 8.6 percent. Puri said there have been job gains in areas like leisure and hospitality.

Even though more jobs will be added, Puri said it will take years before the state's unemployment rate reaches healthy levels. That's because the unemployment rate doesn't count people who stop searching for jobs. As more employers increase hiring, those people who gave up searching for a new job will return to the labor pool, impacting the unemployment rate, he said.

From June 2012 to June 2013, California employers have added 253,900 jobs, second only to Texas, which increased employment by 303,000 jobs.

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