Web Version [link removed] | Update Preferences [link removed] [link removed] Full California Jobs Report for
August 2024
The Center for Jobs and the Economy has released our full analysis of the August Employment Report from the California Employment Development Department. For additional information and data about the California economy visit www.centerforjobs.org/ca [[link removed].].
Key Takeaways
GDP Growth
California’s Real GDP grew by 2.8% in the second quarter of 2024, below the 3.0% US average and ranked 27th among the states. The Information sector, including high-tech and media, remains a significant contributor but its impact has declined over the past three quarters. Manufacturing and Health Care sectors also played key roles in the recent GDP growth. Seven industries experienced contraction, with Accommodation & Food Services being the hardest hit. Texas has outpaced California in cumulative growth since 2022, with a 12.9% increase compared to California's 3.8%.
Personal Income
California's Personal Income grew by 6.5%, exceeding the national average of 5.3% and placing California fourth among all states. A significant part of the income growth came from Medi-Cal transfer payments, which saw substantial increases due to program expansion. The other two components of Personal Income--net earnings and dividends, interest, and rent-- grew 5.0% in the 2nd Quarter, close to the national average.
Employment Trends
Future job growth potential is slowing as employers reduce hiring plans. The number of unfilled job openings in California decreased by 1.7%, reflecting levels seen during the height of the pandemic in 2020. California’s unemployment-to-job-opening ratio is 1.6, one of the worst in the nation, compared to the US ratio of 0.9. Companies, including Astellas Gene Therapies and Canoo, continue to move operations or headquarters out of California to states like Texas and North Carolina. These relocations reflect a broader trend of businesses seeking more cost-effective locations.
Unemployment Insurance (UI) Debt
California's Unemployment Insurance Fund debt surpassed $20 billion, making it one of the last two states, alongside New York, still carrying pandemic-era debt. California’s UI program accounts for 19.9% of all state unemployment payments despite representing only 11.4% of the national workforce, reflecting the state's generous benefits system. 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]
