Web Version [link removed] | Update Preferences [link removed] [link removed] Full California Jobs Report for

July 2024

The Center for Jobs and the Economy has released our full analysis of the July Employment Report from the California Employment Development Department. For additional information and data about the California economy visit www.centerforjobs.org/ca [[link removed].].

Slowing Job Growth Potential

The JOLTS (Job Openings & Labor Turnover Survey) estimates continue to indicate California employers are cutting back on their hiring plans, reducing the likely scale of future jobs growth in the state.

The number of unfilled job openings at the end of June continued the current sharp decline trend, coming in at levels most recently seen during the height of the pandemic in 2020, and comparable to levels experienced in 2017 in the pre-pandemic period. Comparing the job opening rates (job openings as a share of job openings plus total employment), California has diverged strongly from the overall US level, which has begun to level off at just below 5.0% as job expansion potential remains higher in the other states.

The persistently high unemployment numbers combined with declining job openings now puts California at 1.5 unemployed for every available job opening and rising, compared to the relatively stable rate of 0.8 unemployed per job opening at the national level. California has been the worst state as measured by this metric since last September. This increasing divergence from the rest of the US indicates the challenges the state now faces in reducing its high unemployment levels, while the rest of the country continues to exist in labor shortage conditions.

Key Takeaways Slowing Job Growth Potential: Employers in California are reducing their hiring plans, with job openings declining sharply to levels last seen during the pandemic and even pre-pandemic in 2017. California faces growing challenges in reducing its high unemployment, which stands at 1.5 unemployed persons per job opening, compared to 0.8 nationally.

Preliminary Revisions Show Little Change in Job Estimates: The revision to the March 2024 nonfarm job estimate for California is minimal, with a modest upward adjustment of only 7,700 jobs. Some regions like the Bay Area saw downward adjustments.

CaliFormer Businesses: Companies, including Chevron, FreshRealm, and Google, continue to relocate operations out of California. The trend highlights businesses opting for lower-cost states or permanent telework solutions.

Sunsetting Green Jobs: California is witnessing a significant number of solar energy company closures, affecting the state’s green job market. Factors include elevated interest rates and shifting subsidy policies, raising concerns about the sustainability of relying on green energy jobs as the primary job source.

State Unemployment Insurance (UI) Fund Still Running on Debt: Despite the persistent need for unemployment insurance due to high unemployment, California's UI Fund remains in debt, with spending expected to outpace employer contributions in the coming fiscal years. Read the Full Report [[link removed]] The California Center for Jobs and the Economy provides an objective and definitive source of information pertaining to job creation and economic trends in California. [[link removed]] Contact 1301 I Street Sacramento, CA 95814 916.553.4093 If you no longer wish to receive these emails, select here to unsubscribe. [link removed]