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» VISIT US ONLINE @ DSNEWS.COM 91 fisheries and the environment, households, and industry—but not beyond what Califor- nians are long used to. "Overall, the state is not likely to be great- ly impacted," Nickelsburg said. He expects the state's total employment to grow by more than 2 percent for the next three years. Job Growth Ramps Back Up in California After losing 32,000 jobs in January, non- farm employment rebounded in February, adding 58,800 jobs in February, according to the Wells Fargo Economics Group. Febru- ary's increase reflected a 2.3 percent growth over the past year, creating a net gain of 345,600 jobs. ree industries led the way in job creation, according to the organization's report. Con- struction employment increased 2.2 percent during the month, with a net gain of 14,100 jobs. Residential and commercial construction, particularly in the Bay Area and Los Angeles, helped fuel the spike in job growth. Construction payrolls increased by 6.1 percent. e tech sector in California remains strong, with professional, scientific, and technical services adding 10,300 jobs in February, pushing employment up 4.1 percent from last year. "Hiring also continues to ramp up in wholesale trade, reflecting growth in international trade and online retailing," the report said. Retail, however, did not improve for the month of February, losing another 200 jobs to add to the 14,400 lost jobs in January. e Wells Fargo Economics Group attributes the loss of retail jobs to a disappointing holiday shopping season. Overall, California's unemployment rate continues to trend lower, reported at 8 percent for the month. e rate has fallen for seven consecutive months, narrowing the gap relative to the nation from 1.7 points to just 1.3 points for February. e report found, "Because the drop in the unemployment rate nationally and in California has been accompanied by a decline in the labor force participation rate, the sharp drop in the unemployment rate has been met with a great deal of skepticism." Regardless, the group believes there are encouraging signs for California. e civilian labor force has picked up considerably, rising by 35,700 people in February, outpacing a 23,700 gain in civilian employment. e group noted, "We suspect that the improve- ment in the construction sector is pulling some folks back into the labor market that were discouraged when fewer high-paying job opportunities were available." February Home Sales Fall Slightly in California California single-family home and condominium sales fell 1.4 percent in Febru- ary from January and declined 16.1 percent from February 2013. According to the Real Property Report from PropertyRadar, this past February marked the lowest sales for the month of February since 2008. "Rapid price increases and rising interest rates in concert with sluggish income and employment growth have slowed demand," said Madeline Schnapp, director of economic research for PropertyRadar. "Tougher bor- rowing standards, elevated prices, increasing borrowing costs, and historically low inventory continue to exert a drag on market activity." Although home sales volume decreased in California, the median price for a home in February increased by $5,000, or 1.4 per- cent, to $350,000. Median home prices have jumped 21.1 percent year-over-year. Schnapp noted, "e uptick in median home prices in February means little as seasonal factors continue to impact both sales and prices. Given the lackluster sales volume, however, median prices are unlikely to see the rapid gains that characterized the first half of 2013." Negative equity is also on the decline—a positive note for Californians. e number of California homeowners with more than 10 percent equity in their homes increased by 2.3 percent—nearly 120,000 homeowners in February. "But, it is important to keep in mind that 1.2 million California homeowners, or 13.9 per- cent, remain underwater and will continue to create significant headwinds for the California housing market recovery," Schnapp cautioned. She continued, "In sum, the California housing market continues to improve, just more slowly than most analysts expected, given that we are in the fifth year of an eco- nomic recovery." Nonprofits Sue California Governor over Alleged Misused National Servicing Settlement Funds ree nonprofit consumer groups filed suit against California Gov. Jerry Brown in March, alleging the governor misdirected funds from the landmark $25 billion national servicing settlement with the nation's largest banks. California received $410 million in the settlement on behalf of California homeown- ers, $369 million of which was earmarked for counseling and other homeowner assistance but allegedly wound up in the state's general fund. e groups say Brown redirected the funds into the general state fund when the state was struggling with a deficit. Now that the state is anticipating a surplus, the groups say it's time for Brown to return the money to its intended use and help save California homeowners faced with foreclosure. e $369 million was "specifically intended to give California homeowners the necessary counseling and assistance to save their homes from foreclosure, among other similar purposes. e governor promptly— and, indeed, unlawfully—diverted most of the $369 million away from the special deposit fund and into the general fund, with no apparent intention of reconstituting the special fund unless the court compels him to do so," stated the National Asian Ameri- can Coalition (NAAC), COR Community Development Corporation, and the National Hispanic Christian Leadership Conference in their lawsuit filed in a Sacramento Superior Court. Furthermore, the groups assert, "[T]here is no question that the governor has projected a large budgetary surplus for 2014 and beyond but has given no indication in his budget that he intends to replenish the diverted funds, now or ever." As such, the groups are requesting the court obligate the governor to return the funds to their intended purpose. Alongside the lawsuit, two other non- profits sent letters to Gov. Brown requesting he comply with the request of the lawsuit. HomeFree-USA, a minority-founded HUD intermediary, and Operation HOPE, a California-based nonprofit housing counsel- ing group, urged the governor to return the There were 14,484 foreclosure filings in California as of March 2014, according to RealtyTrac. KNOW THIS

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