Headwinds Buffet California Jobs Recovery
New state unemployment data released this week highlights the headwinds that continue to buffet California’s economic recovery and the importance of not assuming the state’s economic dominance is pre-ordained. According to a report in the San Francisco Chronicle, a total of 145,367 newly laid-off state residents filed for benefits for the week that ended April 3, almost 40,000 more than the prior week, or a 36.6% surge. California accounted for almost one fifth of the nation’s 744,000 new claims, far more than the state’s 11.8% share of the labor force. Nationwide, claims rose by 16,000 or just 2.1%.
Another story in the Wall Street Journal similarly offered dour news for California’s employment prospects and suggested that strong employment gains in other states may give them a competitive edge in the future. The news comes as the Bay Area Council makes progress in building an unprecedented statewide coalition to spur action on a range of issues, including housing (see below), homelessness, high taxes and onerous regulation, that have gone unaddressed for too long, threaten the state’s ability to compete economically and are fueling a flight of jobs and investment. To engage in the Council’s economic competitiveness initiative, please contact Chief Operating Officer John Grubb.