California Last in Jobs Creation

More bad news on the state economy: http://www.bizjournals.com/bizjournals/on-numbers/scott-thomas/2011/07/texas-takes-midyear-employment-crown.html">The Business Journals’ On Numbers is reporting that California ranks dead last in the number of jobs created over the last five years.

The state had 14,068,600 non-farm jobs reported as of June 2011, down 1,009,400 from June 2006. There were fewer net jobs in three of the last five years. However, at a loss of 6.7% of total employment, California still tails Florida, Arizona, Michigan, and Nevada in terms of percentage of the workforce eliminated. Nevada lost only 169,000 jobs during the same period, but those represented 13.2% of total employment there.

Texas was one of the big jobs winners, according to the report. 537,000 new employees have joined the workforce there over the last five years, with overall growth in the employment market four of those years. Eight other states and the District of Columbia also showed net jobs growth over the study period, with 41 others experiencing a loss.


Is it any wonder? We have a state government far more interested in figuring out new ways to honor Harvey Milk than in making this a well-run state.

Anyone think this could be due to the tax environment? Any correlation twixt the tax burdens and the failure to generate jobs? And where are all the retirees going? I know many retirees and soon-to-be-retirees who are heading for the EXIT door from the state. Ironically many of them are public sector retirees who don't want to pay the taxes to fund more pensions for overpaid and over-pensioned public employees.

The soak-the-rich taxation in California is backfiring on the state, and massively. (Note that Obama is pushing for soak-the-rich policies at the federal level.) Even now that these "temporary taxes" have actually proven to be temporary, the big picture of taxation in the state is not favorable. Our neighboring states have either a sales tax or a state income tax; California has both, and both are among the highest in the nation. But, of course, we have Prop 13 tax limits to offset those. Except that for most individuals, the overpriced housing and the taxes on homes have not protected them from high real estate taxes either. Put it all together and you have a sorry picture. It won't get better until the tax burden changes, and that may take a very long time.

Texas isn't quite as good at creating jobs as Governor Perry would like to claim. I have calculated job growth per 1000 residents over the last economic cycle, from 2002 to 2009. Arizona, Utah, Washington and Virginia all beat Texas. As for California, the golden state lost jobs.

Texas and California both have serious problems with education. Those two states and Mississippi have the lowest percentages of high school graduates in the country. Looking at bachelor's degrees, Texas is about average for the US, while California is somewhat above average. Colorado, Massachusetts, Connecticut, and Maryland have the most people with bachelor's degrees, while West Virginia has the fewest.

California's leaders have slashed funding for schools and universities in recent years, so expect the educational situation to get worse.

California wages are on the high side, while Texas wages are not particularly low by US standards. When you work out take home pay less taxes and housing costs, the two states are very close.

I will guarantee you that the air quality in the Los Angeles basin is worse than anywhere in Texas, although few people complain about it.

Texas benefits enormously from right-to-work laws. Right-to-work states lead the country in job creation. Living standards in California suffer enormously from high housing costs, which eat up all of the extra wages.

With an expensive labor force of dubious quality, California is in deep trouble. The state is run for the benefit of aging hippies who bought houses many year ago and who are protected from property taxes by Prop 13. Young people face expensive homes, poor schools and expensive universities.


California's leaders have slashed funding for schools and universities in recent years, so expect the educational situation to get worse.

====================== CA has certainly slashed funding for CC, CSU and UC, but NOT education.

K-12 is legally entitled to over half our general fund revenue via Prop 98, and in addition to more than HALF our general fund revenue from Prop 98 virtually EVERY school district in this state floats million/billion dollar bond issues every two years. CA has the highest paid teachers, by far, in the entire nation.

We have LOUSY education here because of the public teachers union. Public teachers are paid 4 times that of private sector teachers, yet have 100 times the job security. There is a DIRECT correlation with the rise of the CA public teachers union and the decline fo CA public education and test scores.

I know it, I have seen it first hand, I have worked it, I have lived it. It is a joke. Not a pretty site.

When you have over 155,000 people leaving California (src: moving.com), taking about 85,000 mobile middle-class jobs with them, but of course, there WILL be a drop in State revenue.

The issue isn't why there isn't jobs.

To read about waves and waves of businesses moving out of this Golden state, one HAS to wonder... what is Sacramento Capitol thinking? Oh, wait... Pox on me for voting clueless legislators. I blame term-limitation, therefore, I blame us, the voters.

Did they forget that small-medium manufacturing businesses boast the best job-force-multiplier (contributing back to within the local community)? What's the 2nd worse? Service sector. Worse? Government.

The real issue is really about what California wants to become. Environmentally friendly hut-village or an economic powerhouse urbana.

Can't have both.

Log in to comment

Skip Ad

Let’s Be Friends

Subscribe for local event alerts, concerts tickets, promotions and more from the San Diego Reader