California Unemployment Will Remain High

The jobless rate in California is expected to drop slower than the national rate.

One thing that could cause people in California to file bankruptcy is an extended period of unemployment, though improvements in the job market will be slow, according to a recent report.

The University of California at Los Angeles' Anderson School of Business said in a study that growth in employment opportunities for the state will lag behind the rest of the nation. The report noted that the unemployment rate for the state will be about 12.1 percent for much of the year.

Jerry Nickelsburg, senior economist with the business school, said that while growth in the state's economy is expected, the unemployment rate will not see a decline to below double digits before 2012.

"Unlike other deep recessions, the rapidity of the recovery, at least on the unemployment front, will be muted," Nickelsburg said.

A high jobless rate can have cascading results on an economy. While people find themselves out of work, they may rely on credit card debt to make ends meet, driving them further into the red. It may also make it impossible to avoid foreclosure, as homeowners don't have the funds to pay off mortgages.