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EDD outlines three‑phase recession plan tied to unemployment thresholds; state agencies say data not yet signaling activation
Summary
California Employment Development Department officials described a three‑phase recession response tied to 6%, 8% and 12% unemployment triggers, explained operational steps (overtime, hiring, vendor staffing) and said current data as of January 2026 do not indicate an imminent need to activate the plan.
Nancy Farias, director of the Employment Development Department (EDD), told the Senate committee that EDD’s recession plan (developed under SB 390) is operational, data‑driven and structured around measurable triggers rather than single‑policy attributions.
Farias described three phases: phase 1 (6% unemployment) increases capacity using existing staff, authorizes overtime and prepares further escalation; phase…
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