Entrepreneurs are thriving as California's economic recovery continues

OAKLAND, Calif. - This last week, there was a mixed bag of job news in California well worth reporting as we continue to struggle out of the economic abyss created by the pandemic. 

California labor experts, anticipating a bigger recovery, are waiting on a Golden State human/economic trait to fully kick in as it has so reliably for decades: entrepreneurship.

This week was a roller coaster. Labor lawyer and former EDD Director Michael Bernick, 40 years a California labor expert, is in practice with the international mega law firm of Duane Morris. 

The good news, entrepreneurs, big and small, are starting new businesses and creating new jobs. 

"In April and May, new business formations in California have increased significantly over the previous year and much more than we've seen in previous recessions, especially during the Great Recession," said Bernick. 

The bad news, it's only a modest start from the massive destruction the pandemic wrought on small businesses. 

"Compared to pre-pandemic times, the number of small businesses opening in California and astounding 51.5%," said Bernick.

Bernick believes that the economy will kick into a much higher gear this fall if four things happen. 

"The state formally reopened June 15th. We're not seeing people coming back. But, I think, in September, if the schools fully reopen as they should, if we get increased child care opportunities, as people's heath concerns, real and imagined decrease and as the unemployment insurance fades out, I think we will see more activity then," said Bernick.

At the moment, some 2 million Californians remain jobless for now.