California Adds Jobs In May; Economy Shows Signs Of Weakness

SACRAMENTO, Calif. (AP) – California’s unemployment rate has fallen to 4.3% in May. That nearly matches the pre-pandemic rate of 4.1% in February 2020. Employers added 42,900 new jobs in May. But Friday’s report from the Employment Development Department is overshadowed by recent signs of a wobbly economy. Inflation is at a 40-year high, stocks prices have tumbled and the Federal Reserve imposed the highest interest rate hike in nearly three decades. Experts say California is more likely to be impacted by those changes than other states. That’s because California’s economy relies heavily on real estate and income derived from capital gains.