Unemployment up in Silicon Valley

The technology downturn continues to hammer California's Silicon Valley, where the unemployment rate in October was 7.9 per cent, the highest level since 1983 and well above last month's statewide average of 6.4 per cent.

State officials said unemployment in Santa Clara County, the heart of the Silicon Valley high-tech hub, was unchanged in October from September, but they revised the September rate up to 7.9 per cent from an initial 7.7 per cent.

The recent levels reflect the fallout from sharply reduced demand for technology goods and services over the past two years that has led to scores of layoffs in Silicon Valley, where the jobless rate had been as low as 1.3 per cent in December 2000.