1.1 million Californians could lose unemployment benefits soon

About 1.1 million out-of-work Californians will lose their state or federal unemployment insurance beginning in early January if the two houses of Congress can't cut a deal.

The state Employment Development Department reported Wednesday, the day after GOP House Speaker John Boehner sent his members home, that the first people to stop drawing biweekly benefits will be about 100,000 people on the so-called Fed-Ed program. Fed-Ed provides up to 99 weeks of support of up to $450 a week for the long-term unemployed in the Golden State.

Other people will be cut off more gradually. Those receiving state-financed support will stop getting insurance payments as soon as their initial 26 weeks of benefits ends.

The jobless who receive benefits under one of three federal extensions will lose support at the end of their current tier, the EDD said.

EDD Director Pam Harris said her agency is doing all it can to provide information to its clients about the congressional negotiations.

"We know unemployment is a stressful experience at any time, and we understand that the uncertainty surrounding the benefit extensions adds to that stress, especially during the holiday season," Harris said.

In all, about 585,000 unemployed workers in California exhausted all available benefits from either the state or federal government as of Dec. 19, the EDD said.

Last week, Democratic and Republican leaders in the U.S. Senate agreed to a compromise to extend a federal payroll tax cut and unemployment benefits during the first two months of 2012 to buy time to forge a yearlong deal. Republicans, who control the House of Representatives, rejected that agreement, setting the stage for the expiration of both the tax cut and the unemployment benefits Dec. 31.

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Photo: Unemployed people check listings at a Westminister job center. Credit: Jaec Hong / Associated Press

California creates 6,600 new jobs in November

California employers added a modest 6,600 new jobs in November, driving the monthly unemployment rate down to 11.3%, its lowest level since the depths of the recession in June 2009.

But economists warned that the Golden State still has a long way to go in making up for the 1.3 million jobs that disappeared over the last four years and that the road toward historic, single-digit unemployment levels could be a tough slog.

"This is an OK jobs report," said Kimberly Ritter, associate economist with the Kyser Center for Economic Research at the Los Angeles Economic Development Corp. "It's good to see the unemployment numbers coming down across the board. We're still seeing slow progress ... and at least we can say it's steady."

The decline from October's jobless rate of 11.7% marked the fourth consecutive month of California employment growth, the California Employment Development Department reported.

The EDD also noted that it revised upward to 37,600 the number of new jobs for October. In all, 211,400 jobs have been created this year, an annual growth rate of 1.7%, the EDD said.

California's unemployment rate, which far exceeded the national rate of 8.6% in November, has dropped by more than a percentage point from a high of 12.5% in December 2010.

Similar drops were registered in major regions: Los Angeles County is down to 11.9% from 13% a year ago; Riverside-San Bernardino counties to 12.5% from 14.5% a year ago; Orange County to 8.1% from 9.4% a year ago; and Ventura County to 9.5% from 10.9% a year ago.

While economists caution that some of the improvement in the November numbers could be caused by people giving up on job searches, they point to the last two weeks' decline in the number of people putting in first-time claims for unemployment insurance benefits as a positive sign that a sustained recovery is underway.

The U.S. Department of Labor reported earlier this week that monthly requests for unemployment claims fell to their lowest level since 2008.

That guarded optimism is shared by Donald Whatley of Torrance, a furniture manufacturing production manager laid off in the spring. Whatley, 54, said he feels that the job climate is getting better, even though he's yet to be rehired.

"Just getting in the door is my problem," he said. "But I've seen the number of calls [from potential employers] turn around lately and, hopefully, something will turn up."

But the recent, more upbeat economic indicators could turn down again early next year if a partisan, divided Congress doesn't renew federal unemployment insurance benefits, the Obama administration and advocates for the unemployed warn.

The Department of Labor predicts that 230,000 out-of-work Californians would lose their benefits of a maximum of $450 a week by the end of January and 600,000 by the close of March if Congress takes no action. Unemployment insurance payments are a major stimulus for California's recovering economy, experts say.

Bonnie Ornitz, an out-of-work computer systems administrator from Granada Hills, worried that she could be forced to sell her house and move to another state with a lower cost of living if her unemployment benefits are cut off.

"I'll be living entirely out of savings," Ornitz said, and "my medical [insurance] payments will be going sky high."

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Photo: Unemployed people check listings at a jobs center in El Centro. Credit: Mark Ralston / AFP/Getty Images.

California unemployment falls for 4th straight month in November

California employers added 6,600 new jobs in November, driving the monthly unemployment rate down to 11.3%, its lowest level since the depths of the recession in June 2009.

The decline from October's jobless rate of 11.7% marked the fourth consecutive month that the Golden State has generated jobs as it gradually replaces some of the 1.3 million lost in the worst economic downturn in half a century, the California Employment Development Department reported.

The EDD also reported that it had revised upward to 37,600 the number of new jobs for October. In all, 211,400 jobs have been created this year, the EDD said.

California's unemployment rate, which far exceeds the national rate of 8.6% in November, has dropped by more than a percentage point from a high of 12.5% in December 2010.

While economists caution that some of the improvement in the November numbers could be caused by people giving up on job searches, they point to the last two weeks decline in the number of people putting in first-time claims for unemployment insurance benefits as a positive sign that a sustained recovery is underway.

The U.S. Department of Labor reported earlier this week that monthly requests for unemployment claims fell to their lowest level since 2008.

That guarded optimism is shared by Donald Whatley of Torrance, a furniture manufacturing production manager laid off in the spring. Whatley, 54, said he feels that the job climate is getting better, even though he's yet to be rehired.

"Just getting in the door is my problem," he said. "But I've seen the number of calls [from potential employers] turn around lately and, hopefully, something will turn up."

But the recent, more upbeat economic indicators could turn down again early next year if a partisan, divided Congress doesn't renew federal unemployment insurance benefits, the Obama administration and advocates for the unemployed warn.

The Department of Labor predicts that 230,000 out-of-work Californians would lose their benefits of a maximum of $450 a week by the end of January and 600,000 by the close of March if Congress takes no action. Unemployment insurance payments are a major stimulus for California's recovering economy, experts say.

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Photo: Unemployed people check listings at a jobs center in El Centro. Credit: Mark Ralston/AFP/Getty Images.

California small businesses can't get loans

California's small businesses can't get the credit they need to expand and hire people.

Forty-four percent of almost 2,000 owners queried said they couldn't access resources needed to grow their operations, said a report released Wednesday by the Graziadio School of Business and Management at Pepperdine University.

With little savings, proprietors are having mixed success raising capital. Instead, they're concentrating on raising revenues from their current products or services, the Graziadio report said.

"Recent signs of stronger holiday consumer demand is a great sign for small business, but it is not time to celebrate just yet," said John Paglia, lead researcher at the Pepperdine University Private Capital Markets Project and an associate professor of finance. "Small businesses will need sustained consumer demand to recover from losses during the Great Recession."

The credit picture is even tighter in Los Angeles County, the Pepperdine report said. About 6 in 10 business owners surveyed see opportunities for growth next year but three-quarters of them expect credit to be tough to get.

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California consumer confidence falls

California consumers' confidence plunged by about 10 percentage points in the fourth quarter of this year as the state continued to experience high unemployment and a volatile stock market rattled nerves, Chapman University reported.

The A. Gary Anderson Center for Economic Research said Wednesday that its composite index of consumer confidence fell to 78.6 in the December from 88.2 in the year's third quarter.

Any index level lower than 100 indicates that more consumers are pessimistic than optimistic about the economy and are less willing to buy new products.

The index is based on consumers' outlook on economic conditions and their spending plans, the Anderson Center said.

The new California results contrast with a national survey conducted by the University of Michigan which showed an uptick in consumer confidence to 64.1 in November from 55.7 in August.

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Photo: An H&M store at the Beverly Center Mall. Credit: Konrad Fiedler / Bloomberg

California wine exports heading toward a record year

 California's international wine exports are booming and on pace to set a record in 2011.

According to the Wine Institute, a San Francisco trade group, the value of exports shipped in the first 10 months of the year already equal last year's record of $1.14 billion. This year's exports are 23% greater than their value at the same time last year, said Linsey Gallagher, the Wine Institute's director of international marketing.

The strong push in 2011 is part of a developing trend.

"California wines for the last couple of years have come into their own, offering quality, diversity and value, Gallagher said.

This year's surge is benefiting from a weak dollar, which adds to the value of California vintages, she said. A bottle that might have cost the equivalent of $10 a few years ago now sells for $7 to $8.

While the bulk California wine bottles go to Europe, the growth in sales to China have been increasing at a rapid pace. Exports to China, which account for about 5% of the total, increased 35% compared with the same 10-month period in 2010, the Wine Institute reported.

California's full-bodied red wines are particularly popular in China, Gallagher said, because their "fruit-forward, bold" taste matches well with often spicy Chinese cuisine.

U.S. wine sales in China are benefiting from a strong economy and a growing middle class that is buying more luxury items, such as automobiles and wine, she said. At the same time, European consumption of California wines remains strong despite the continuing economic crisis.

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Turnover of truck drivers is surging -- good sign for the economy

Competition for top-notch drivers at large trucking companies has steadily picked up over the past year -- a sure sign that the U.S. economy is growing, according to the American Trucking Assn.

The turnover rate of drivers at big fleets rose to 89% in the third quarter of this year, the fourth straight quarterly jump, the association said Monday.

"Clearly, due to the economic recovery, as well as regulatory factors ... we are seeing the market for good, quality drivers tighten," said Bob Costello, the group's chief economist. "As our tonnage index has shown recently, demand for freight continues to rise, so we expect the need for quality drivers to become more acute going forward."

That supply could tighten even more if government safety regulations force some current drivers to leave the industry and require trucking companies to put more big rigs on the road, Costello said.

The turnover rate hit a low point in the first quarter of 2010 but since then has climbed by 50 percentage points, the trucking association said. The average rate so far this year is 81%.

Among smaller companies, the turnover rate rose to 57% in the third quarter, its highest level in three years, the association said.

The American Trucking Assn. is the largest national trade group for the trucking industry, with affiliated groups in all 50 states.

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Photo: Trucks on the Long Beach Freeway going to and from the nearby shipping ports. Credit: Brian Vander Brug / Los Angeles Times

California population grew only slightly in last fiscal year

California's population grew by less than 1% in the fiscal year that ended June 30, and natural growth, rather than migration, accounted for the increase of 260,000 new residents, according to a new official estimate.

The Golden State's population reached 37.5 million people, up seven-tenths of a percentage point from the previous 12-month period, the California Department of Finance reported.

The modest growth, a slight increase over the previous year's 0.65% rise, continued a decadelong trend that was fueled by natural growth.

During the last fiscal year, 511,000 new Californians were born, while 228,000 died. At the same time, 22,000 more people moved out of the state than moved in. About 132,000 migrants entered the state while 154,000 left.

Here are some highlights of the July 1, 2011, population report:

--Of the 58 California counties, Los Angeles was the most populous with 9.8 million people while Alpine in the Sierra Nevada had just 1,109.

--Seventy percent of all Californians live in just nine counties: Los Angeles, San Diego, Orange, Riverside, San Bernardino, Santa Clara, Alameda, Sacramento and Contra Costa.

--Riverside, Imperial, Placer, Tulare, Santa Clara and San Bernardino counties posted the highest population growth, all with more than 1%. Riverside grew the most at 1.59%. Alpine lost the most population with a decline of 3.31%.

--Two-thirds of all counties experienced net out-migration, with more people moving out than moved in.

Read the Department of Finance release.

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Photo: Nelida Mondragon of Fresno with her newborn boy, Isaac Serrano Mondragon, born at exactly 11:11 a.m. on Nov. 11, 2011. New births were responsible for all of California's population growth over the last fiscal year. Credit: Craig Kohlruss / Fresno Bee

California invests in 'green' bonds

California is buying $400 million worth of so-called green bonds from the World Bank.

The purchase is a good deal for the state's taxpayers and also for financing of needed environmental projects in dozens of countries, state Treasurer Bill Lockyer said.

The short-term bonds, which mature on Dec. 16, 2013, will be used by the international financial institution to pay for reforestation, alternative energy and water purification projects, among others.

"These bonds are a great investment for California and its taxpayers," Lockyer said. "We're earning an excellent return, strengthening our portfolio and backing our policies with money in the fight against global warming."

The bonds have a 0.51% yield, roughly double the current rate on two-year U.S. Treasury bonds, 0.26%, Lockyer said.

The purchase is the state's second since April 2009, when California became the first U.S. buyer of the international green securities, acquiring $300 million worth in an investment that matures next April.

The bonds were bought by the state Pooled Money Investment Account, which manages $65 billion for the state, local governments and school districts.

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New financial protection laws to help California seniors

California's elderly are about to get new protections against being victimized by unscrupulous financial product salesmen.

On Jan. 1, a new law takes effect to guard unsophisticated senior citizens from purchasing unneeded annuities that are not likely to provide them with promised financial security.

Annuities are a form of insurance that provide a guaranteed regular income to policyholders.

The law requires insurers to verify that an annuity purchase, replacement or exchange would provide the promised benefits based on a buyer's age, income, liquidity needs, financial goals and other factors. It also mandates that the seller prove that the annuity provides "a tangible net benefit" to its buyer.

The law empowers the state insurance commissioner to pull a sales agent's license, impose fines and demand restitution.

"For far too long, seniors have been victimized by the aggressive marketing and sale of annuity products that may not be suitable for them," California Insurance Commissioner Dave Jones said. "Consumers have unwittingly bought these products not realizing that their invested funds will not be available to them or their funds are terribly expensive to recover if they want to withdraw their money to pay for immediate expenses."

Jones also alerted seniors about another new law that will prohibit financial product sellers from trying to sell unsuitable products to people who recently acquired reverse mortgages to gain access to cash to pay for living expenses.

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Photo: California Insurance Commissioner Dave Jones. Credit: Katie Falkenberg / For The Times 

Villalobos' attorneys drop him for not paying legal fees

 

A judge has tentatively approved a request by lawyers for former state pension fund official Alfred J.R. Villalobos to drop their client over unpaid legal bills.

The Cooley law firm in Palo Alto sought to be relieved from defending Villalobos in a state fraud lawsuit because Villalobos owes $3.5 million in legal fees and is unable to "pay for the fees going forward," Los Angeles Superior Court Judge John H. Reid ruled Wednesday in a tentative decision.

Villalobos' lawyers declined to comment on the judge's ruling. Villalobos could not be reached. However, in legal papers, Villalobos unsuccessfully argued that Cooley should not be relieved from representing him until a U.S. Bankruptcy Court in Reno, Nev., approves his hiring of new counsel.

"If this court grants Mr. Villalobos' request, it is likely that Cooley LLP will be forced to perform further work on behalf of Defendants without compensation," the judge ruled, denying Villalobos' request.

Villalobos, a former board member of the California Public Employees' Retirement System and vice mayor of Los Angeles, is being sued by the California attorney general's office on allegations he plied pension fund officials with luxury trips and gifts to influence investment decisions.

Villalobos and his firm, Arvco Capital Research of Stateline, Nev., earned more than $40 million in allegedly illegal commissions from helping private investment managers win $4.8 billion worth of deals from 2005 to 2009.

The lawsuit, filed May 5, 2010, alleges that Villalobos illegally sold securities without a broker-dealer license. It also alleges that Villalobos and a co-defendant, former CalPERS Chief Executive Federico Buenrostro Jr., violated state unfair competition laws.

Both men have denied the charges. Villalobos contended that he acted only as a "finder" and did not sell securities.

A hearing is set on the legal representation issue for 9 a.m. Thursday at Los Angeles County Superior Court in Santa Monica.

The hearing will also air arguments on an attorney general's motion asking the judge to issue a summary judgment finding that Villalobos and Arvco sold securities without a license. On Wednesday, Reid tentatively denied the motion.

No trial date has been set for the lawsuit against Villalobos and Arvco. Buenrostro, however, is scheduled for trial May 7.

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Photo: Alfred J.R. Villalobos outside the Santa Monica courthouse after a hearing May 28, 2010. Credit: Allen J. Schaben / Los Angeles Times