STOCKTON – California has the highest unemployment rate in the country.
California added more than 50,000 jobs in April two years ago, but the state only added 5,200 jobs last April. It’s a worrying trend that some experts worry about how it affects small business owners.
Experts say this is cause for concern, we have had years of good job growth since 2021 and they are hopeful that this worrying month does not mean employment is stopping.
They worry that mom-and-pop stores could be hit hardest, as inflation is already taking its toll. Small businesses in San Joaquin County are doing everything they can to stay afloat.
“As a business owner, when costs start to go up, you start to think, ‘Can I absorb another salary?'” Ed Snow said.
Snow is the owner of Snow Properties, a three-employee business in Stockton.
Manage properties and HOAs for property owners and see the impact the economy has on small businesses and their owners.
“It definitely comes down to the beginning of the month, what am I going to pay?” he said.
“In terms of small businesses, we are seeing the continued impacts of the economic shutdown during the pandemic,” said Michael Bernick, former EDD director.
He said these impacts come from stimulus money and PPP money that was available to businesses and is now out of the picture.
Then you get inflation, higher wages and costs, and business owners are paying for it.
“And declining consumer confidence and tightening consumer spending,” Bernick said.
Snow said when it comes to property and homeowners, he sees more homeowners having to make tougher decisions and cut expenses.
“Homeowners are looking at their wallets and asking, ‘How do I prioritize, postpone and pay for next month?'” Snow said.
This report is not all bad news. Bernick said the health care industry added 11,000 jobs, keeping the labor market afloat.
Currently the state has 740,000 vacant positions. It’s just a matter of being competitive and finding the right fit.