In October California's unemployment rate jumped
to 8.2 percent, the highest rate in 14 years.
State fund that pays the unemployment benefits is
about to run out of money.
States officials are prepared to ask the federal
government to step in with a loan on Dec.1 so unemployment benefits
can continue.
California has more than 1.5 million unemployed as of
now. The biggest decline came from construction industry, which lost
65,900 jobs in the last year.
The State department announced that its monthly survey
found 527,918 people were receiving regular unemployment checks in
October.
The state's unemployment insurance fund that provides
payments will reach deficit of $2.4 billion at the end of 2009,
forcing the fund to borrow from the federal government.
Schwarzenegger called lawmakers into a special session
to discuss prolong California budget deficit of $11.2 billion. A
deal has not been reached yet as democrats and republicans has been
so far unable to reach a compromise.
President Bush signed into law a bill that Congress
approved to keep unemployment checks flowing to jobless Americans
through the holiday season.
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