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| “We’re moving out of California and taking our jobs with us…so there!” How much pain is California feeling? |
We frequently read in the news the announcement a
particular firm is leaving California and moving to
another state. Some of the reasons given range from
permitting and environmental regulation issues, or high
cost of energy, to onerous workers comp insurance.
Usually, the rationale for leaving California is the high
cost of doing business.
While jobs drained from California to other states do
hurt, we should keep in mind job losses also occur when
companies experience a market decline. This could be
due to competition or some other economic factor which
cause the employer to consolidate or go out of business
altogether.
Therefore, the questions we ponder today are:
1. Are businesses leaving California en masse?
2. What percent of all the job losses within
California do companies relocating out of our state
represent?
particular firm is leaving California and moving to
another state. Some of the reasons given range from
permitting and environmental regulation issues, or high
cost of energy, to onerous workers comp insurance.
Usually, the rationale for leaving California is the high
cost of doing business.
While jobs drained from California to other states do
hurt, we should keep in mind job losses also occur when
companies experience a market decline. This could be
due to competition or some other economic factor which
cause the employer to consolidate or go out of business
altogether.
Therefore, the questions we ponder today are:
1. Are businesses leaving California en masse?
2. What percent of all the job losses within
California do companies relocating out of our state
represent?
World’s Sixth Largest Economy
According to Cal Facts 2004, California is the world’s sixth largest economy with a gross state product of nearly $1.5
trillion and accounts for over 13 percent of the nation's output. New York, our nation’s next largest economy is about
40 percent smaller. 1
Average Employment
Between January and October 2005, California’s month-to-month average in the number of people employed is
14,751,000. In terms of average employment, this is our best year on record. During the same period the
unemployment rate averaged 5.38 percent—slightly higher than the January through October 2001 average of 5.24
per-cent. 2
International Trade:
We are the leading exporting state. Foreign trade results in numerous jobs related to export activity. As an example,
exports to Mexico provided more than 200,000 jobs between 2000 and 2002—17 percent of all export-related
California jobs for that period. 3
California Industries
If you refer to the chart above, you will notice: Construction—at an average rate of 6 percent per year, it is the fastest
growing industry.
Service Sectors—most of the new jobs are found in the state's services sectors.
Manufacturing—major reductions occurred in high-tech jobs in 2001 and 2002. We lost almost 160,000 jobs here.
Public Policy Institute Study
Using a new data source called The National Establishment Time-Series (NETS), a Dunn & Brad-
According to Cal Facts 2004, California is the world’s sixth largest economy with a gross state product of nearly $1.5
trillion and accounts for over 13 percent of the nation's output. New York, our nation’s next largest economy is about
40 percent smaller. 1
Average Employment
Between January and October 2005, California’s month-to-month average in the number of people employed is
14,751,000. In terms of average employment, this is our best year on record. During the same period the
unemployment rate averaged 5.38 percent—slightly higher than the January through October 2001 average of 5.24
per-cent. 2
International Trade:
We are the leading exporting state. Foreign trade results in numerous jobs related to export activity. As an example,
exports to Mexico provided more than 200,000 jobs between 2000 and 2002—17 percent of all export-related
California jobs for that period. 3
California Industries
If you refer to the chart above, you will notice: Construction—at an average rate of 6 percent per year, it is the fastest
growing industry.
Service Sectors—most of the new jobs are found in the state's services sectors.
Manufacturing—major reductions occurred in high-tech jobs in 2001 and 2002. We lost almost 160,000 jobs here.
Public Policy Institute Study
Using a new data source called The National Establishment Time-Series (NETS), a Dunn & Brad-
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