Bloomberg: California Added Only 5,400 Private-Sector Jobs Since 2022

https://www.bloomberg.com/news/articles/2024-08-08/california-added-only-5-400-private-sector-jobs-since-2022?utm_content=business&utm_medium=social&utm_campaign=socialflow-organic&utm_source=twitter&cmpid=socialflow-twitter-business

by fishupontheheavens

8 comments

  1. That’s a bit alarming. It’s almost unbelievable, actually.

  2. *Nearly all employment growth came from government, study shows

    *California has lost both people and businesses since pandemic

  3. We’re in a high interest rate environment [designed to cause the economy to contract and to get people fired](https://www.youtube.com/watch?v=bIHH5Kh2dU0).

    So yeah, no shit. As other’s have pointed out government jobs have helped, and it’s why we got our soft landing instead of the economic crash the Fed seemed to be hoping for.

  4. Well ya, tech has been indulging in layoffs while posting record profits…

  6. California blows, you just have to look at who is in charge. 

  7. The decline in California’s private sector employment can be attributed to several key factors:

    1. **Industry-Specific Declines**: The technology and finance sectors have experienced significant job losses. The tech industry, which includes major companies like Google, Apple, and Facebook, has seen a 16% decline in employment since its peak, losing 98,000 jobs. The financial sector has also contracted by 8%, shedding 43,000 jobs since its peak in December 2021

    * .
    * **Post-Pandemic Adjustments**: The tech industry’s job losses are partly due to a correction following pandemic hiring sprees. Many tech companies are choosing to expand outside California, despite maintaining a presence in traditional tech hubs like Silicon Valley and the Bay Area
    * .
    * **High Costs of Doing Business**: California’s high business costs have been a recurring concern, contributing to the decline in high-wage jobs that significantly support the state budget. This has led to a shift towards lower-wage jobs in sectors like hospitality and services, which do not compensate for the loss of middle-class jobs
    * .
    * **Demographic Changes**: An aging population is contributing to long-term declines in labor force participation. This trend is not unique to California but reflects broader national demographic shifts. Labor force participation has decreased from over 67% in 2000 to near 62% today, largely due to an aging workforce
    * .
    * **Public Sector Growth**: While the private sector has been shedding jobs, the public sector and publicly supported fields have seen job gains, which have somewhat masked the overall weakness in the private labor market. Since September 2022, the public sector has gained 361,000 jobs, offsetting some of the private sector losses
    * .

  8. Their government and cities are also freezing jobs. Not laying off but just freezing for now because the state and cities are running a deficit.

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