The Los Angeles Times detailed California Governor Gavin Newsom’s recent press conference that shed light on how COVID-19 has impacted employment in the state. The article explains that unemployment numbers have already surpassed the peak of the Great Recession, which puts pressure on California to borrow more money from the federal government.
As of March 12th, more than double the amount of unemployment claims that were filed during the height of the Great Recession were sent to the California Employment Development Department due to displacement caused by the COVID-19 pandemic.
According to the new budget proposed by Gov. Newsom, “the state will likely need to borrow in the tens of billions of dollars, resulting in significant future annual interest payments until the loans are repaid.”
The Southern California Association of Governments (SCAG) recently released a preliminary report that analyzed the potential employment and taxable sales implications of COVID-19, as well as provided a detailed industry breakdown to identify the region’s areas of most need.
You can read the Los Angeles Times’ article by clicking here.
You can also access the SCAG assessment, “Potential Economic Impacts of COVID-19 in the SCAG Region,” by clicking here.