The state of California released a jobs report Friday showing the highest unemployment rate in the nation. California alone represents one-third of the overall unemployed in the nation.
The California Employment Development Department September jobs report showed that the state gained 47,400 jobs since August but holds an unemployment rate of 7.5% which ties Nevada for the highest in the United States.
Additionally, unemployment claims rose to 80,700 last week which amounted to one-third of the total claims in the country.
The state’s Democratic Gov. Gavin Newsom painted an optimistic picture of the report blaming the coronavirus pandemic for the slow growth but claiming that the state is “averaging record job creation.”
“Our economic recovery continues to make promising progress, with 812,000 new jobs this year and regaining over 63 percent of those jobs we lost to the pandemic,” Newsom said in a release. “As we continue averaging record job creation, our work is more important than ever to get more Californians back on the job and support those hardest hit by the pandemic.”
“Within the past eight months, California has created 812,000 new jobs, more than any other state,” Newsom added. “That averages out to approximately 101,500 per month.”
In June, and many times since then, Newsom has claimed that California is “roaring back” under his leadership but economic indicators, including the recent jobs report, have suggested that the comeback is moving slowly.
Since the beginning of 2018, California has seen 265 companies relocate their headquarters outside of the state – 74 of which left in the first six months of 2021, according to a new analysis published by the Hoover Institution, a right-leaning think tank at Stanford University. By comparison, 62 businesses moved outside of the state in 2020, while 78 relocated in 2019. In 2018, 58 companies exited the state.
The migration is taking place across a broad range of industries, such as manufacturing, aerospace, financial services, real estate, chemicals, health care and technology. The headquarter exits include Big Tech legacy firms such as Hewlett-Packard Enterprises and Oracle, but also smaller, rapidly growing firms like Darvis, which helps digitize hospital logistics, hygiene and documentation.
The biggest reason that companies are relocating outside of the state is finances: California is “too expensive, too regulated and too heavily taxed, both for companies and for the workers they hire.”
That’s evidenced in part by the new destinations for the departing companies: States with lower costs, fewer regulations, lower taxes and a higher quality of life for workers are the leading choices for the businesses. Since the beginning of 2018, Texas has seen 114 companies formerly based in California relocate to the state.
According to Gov. Greg Abbott (R), meanwhile, Texas led job creation across the United States in September. According to Abbott, Texas had nearly twice the number of new jobs than California in September.
Author : Andrew Mark Miller