Californians: Want Great Jobs? Leave the State.

The California unemployment figures for May 2008 constitute some misleading good news. We moved from the third worst state in April to the fifth worst state in May.

The bad news is that California's improvement is due to the fact that a handful of other states' unemployment rates are rising even faster. Michigan -– which used to build cars -– is in the toilet with an 8.5% unemployment rate.

Feel any better?

Nationwide the unemployment rate for May jumped a scary half percent in one month: from 5% to 5.5%. California boosted the national average with its scarier increase from 6.2% to 6.8%. We have the highest California unemployment rate in 5 years -– from when we were coming out of the dot.com slump. But high as our unemployment is, it's the rapid INCREASE in unemployment that should worry us. We've got trouble.

Well, at least California can take some perverse solace in the nationwide unemployment increase. Maybe that means the new President and Congress won't increase taxes and deficit spending next year. Uh huh.

But if you really need a job and have any skills at all (such as showing up to work on time), I can guarantee you employment. Just not in California. There are some states where businesses are crying for workers.

My wife is from South Dakota and has a lot of family there. Businesses there will arrange job interviews at 6:30 AM for job prospects to drop by on the way to their current job. The unemployment rate is the lowest in the nation at 2.9%.

Tied for the lowest unemployment rate is Wyoming. Nebraska has a 3.2% rate, as does Utah. North Dakota (which makes South Dakota's harsh winters seem pleasant by comparison) is 3.3%.

Yes, the jobs in these states don't pay as much as California. But living costs -– especially taxes and housing -– are far lower than California.

As this disparity in unemployment rates grows between states, more Californians reluctantly will pull up stakes and move to better employment states. Not to mention California businesses leaving for a better tax, regulatory and litigation climates. And let's not forget the businesses that are simply closing their doors forever.

Gee, I wonder if this economic tailspin will affect California' state and local tax base. Ya think?

Apparently not. State and local governments are still hiring like crazy.

But not to worry. Politicians think there are only two times to raise your taxes: good times, and not so good times. And this is one of those times.

For the current listing of states' unemployment rates, go to:
http://www.bls.gov/web/laumstrk.htm

For more on California's unemployment situation, go to the latest California Employment Development Department (they are doing SUCH a great job developing CA employment!) press release:
http://www.edd.ca.gov/About_EDD/pdf/urate200806.pdf