Southern California Will Be Hard Hit By Unemployment

The State of California and particularly Southern California will be hard hit by job loss in the downturn caused by the coronavirus pandemic. Los Angeles Mayor Eric Garcetti has already declared a state of fiscal emergency in response. In a webinar hosted by the Los Angeles Business Council this week, Nadine Watt, CEO of the Watt Cos., outlined the unemployment to come as well as the subsequent loss in tax revenue.

According to Watt, unemployment in California will hit its peak at 24.5% and lose $41 billion in tax revenue, compared to estimates from four months ago. During the Great Recession, unemployment peaked at 24.5%. “That is staggering,” said Watt in the digital discussion. That unemployment rate will remain high through 2021, estimated to hover at or around 12%.