California Governor Gavin Newsom (D) has initiated his presidential campaign for 2028, even as the state grapples with the highest unemployment rate in the nation.
Earlier this month, there were reports about Newsom leaving California during a period marked by numerous wildfires. He traveled to rural South Carolina to gauge support for his presidential aspirations among local Democrats.
Despite leading criticism against President Donald Trump and Republican figures, Newsom’s inauguration performance has raised questions about his future. According to the San Francisco Chronicle, last month revealed California’s unemployment rate to be the highest in the country.
New federal data released recently shows California’s unemployment rate has increased by 0.1 percentage points, reaching 5.4% in June, making it the highest in the U.S.
The state experienced a loss of 6,100 jobs overall, including 9,900 layoffs, particularly in professional services. While sectors like healthcare and government added jobs, most others saw decreases.
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The previous employment figures from May were revised downwards, now reflecting an increase of 11,700 jobs, which is a reduction of 6,000 jobs from an earlier estimate of 17,700.
Though 5.4% isn’t historically high, it still falls below the 5.5% threshold that economists previously regarded as the “non-accelerating inflation rate of unemployment” (Nairu) – the lowest level before inflation pressures might arise.
Nonetheless, it highlights California’s underperformance compared to other regions in the country.
