City’s Unemployment Hit 16 Percent in June, 14,700 Fewer Pasadenans Employed Than Last Year

Pasadena’s unemployment rate decreased by just under one percent to 16 percent in June, which was the latest rate information available, but a state analyst warns that all available signs indicate current economic conditions are not likely to improve significantly until the COVID-19 pandemic is brought under control.

The slight bump in employment was linked to businesses briefly reopening, before being ordered to again shut down as the novel coronavirus spiked throughout the state, California Employment Development Department Labor Market Consultant Juan Millan said.

“There are so many different variables and they’re all pulling the same direction, and it’s not good news,” Millan said.

“Pasadena, in June of 2019, had an unemployment rate of 4.1 percent. And there were 75,700 people who had a job,” Millan said.

Today, in 2020 Pasadena, Millan said there is an unemployment rate of 16 percent and only 61,000 people have jobs.

Pasadena’s rate was on par with the state, which also reported 16 percent unemployment in June, according to EDD data.

With an unemployment rate of 19.5 percent, Los Angeles County’s rate exceeded that of neighboring counties, the state and the national average of 10.2 percent.

“We have almost 900,000 fewer people working in L.A. County from a year ago… 897,000 fewer civilians working in Los Angeles County in June of 2020 compared to June of 2019,” according to Millan.

And based on new unemployment claims, the situation does not appear to be moving in a positive direction, he said. L.A. County saw more than 110,000 initial unemployment claims in July, which is orders of magnitude above average.

At the state level, “Just last week, the EDD paid an average of $792 million a day in unemployment benefits,” the EDD said in a written statement issued Thursday. “That amount is a 1,033 percent increase over the $70 million in average daily benefits paid during a similar week at the height of the Great Recession.”

The agency has distributed just under $60 billion in unemployment benefits since the start of the pandemic, state officials said.

Beyond the unemployment figures, Millan noted that state-mandated notices of mass layoffs and business closures continue to pile up. Companies laying off 25 workers or more are required to issue a notification to the EDD.

Pasadena employers announcing mass layoffs in July included Green Dot Corp., with 95 permanent layoffs; Centerra International Inc., with 54 permanent layoffs; and Levy Premium Foodservice Limited, which reported 14 permanent layoffs, according to the state database.

While many of the job losses in the database are initially reported as temporary, in another foreboding sign, many are returning to change the status to permanent, Millan said.

A declining gross domestic product was also affecting consumer confidence, which was hurting the stock market and business growth, Millan said.

“I think people are in survival mode right now, and they’re very concerned about things not looking much better in the near future,” he said.

“Many of those who may still be working right now, and maybe haven’t lost jobs, they’re slowly putting their money into a savings fund or an emergency fund,” Millan said. “Because people are holding onto their money and staying in, that’s not helping the economy and that’s not stimulating the activity in the labor markets. So that doesn’t help.”

Millan said the state’s economic future was directly linked to the course of the COVID-19 pandemic.

“It all depends on how soon we can get a hold of this epidemic, whether it be through strict regulations, or enforcement or through a vaccine, but until we have control… I don’t think we have much of a recourse.”