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California Tops U.S. in Job Losses

California Tops U.S. in Job Losses

May 12, 2024

California Tops U.S. in Job Losses

California is grappling with significant job losses, leading the nation with a count of nearly one million residents unemployed, as revealed by recent federal data. The tech industry, a cornerstone of the state's economy, faces a particularly severe downturn.

The Federal Reserve of Economic Data (FRED) reports that 482,700 Californians have been rendered jobless since the year's commencement, placing the state at the forefront of the country's job losses. Texas, New York, Illinois, and Florida trail behind, with Texas experiencing 274,900 job cuts and New York 220,600. In total, the first quarter of 2023 saw a 20 percent spike in joblessness from the previous year, affecting 931,700 residents of California.

The unemployment rate in California has been on an incline, reaching 5.3 percent in February, up from 4.5 percent the year before, according to FRED data. The jobless rate has remained at 5.3 percent despite four out of eleven job sectors losing jobs in March, as per the state Employment Development Department. The construction sector alone saw a loss of 5,300 jobs. Notably, if not for the growth in private education and health services, the figures would be markedly worse.

The tech sector in California has been hit particularly hard, losing 53,600 jobs from March 2023 to March 2024. Companies like Tesla and Google are announcing more layoffs, with Tesla planning to cut its global workforce by 10 percent, potentially affecting 14,000 employees. Apple also dismissed 614 workers in California, and eBay is reducing its workforce by approximately 1,000 roles, according to company announcements and state filings.

The economic downturn is affecting California's budget, now facing a multibillion-dollar deficit for the second year in a row. Governor Gavin Newsom reported a $27.6 billion deficit, while the Legislative Analyst’s Office suggests it could be as high as $58 billion.

The Epoch Times Article


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