California’s unemployment rate is now the highest in the country, reaching 5.3% in February following new data that revealed job growth in the nation’s most populous state was much lower last year than previously thought. California lost a staggering 2.7 million jobs at the start of the coronavirus pandemic, losses brought on by Gov. Gavin Newsom’s stay-at-home order, which forced many businesses to close. The state has added more than 3 million jobs since then, a remarkable streak that averaged just over 66,000 new jobs per month, according to the state Employment Development Department. But a recent analysis of unemployment data by the federal government revealed that job growth slowed significantly last year. The federal government releases job numbers each month that state officials use to measure the health of the economy. Each year, the federal government analyzes these numbers to see if they match payroll records. Normally, the revisions are small and don’t impact the overall view of the economy.
There is a pattern.
- People are voting with their feet. Between 2020 and 2022, the Census reports, California had a net population loss of 508,903.
- When the Census takes housing costs into account, California has the highest poverty rate of the 50 states, at 13.2 percent. See the Census poverty report at page 47.
- California’s homeless rate is 44 per 10,000 v. Florida’s 12 per 10,000.
- The Tax Foundation’s State Business Tax Climate Index ranks California 48th of the 50 states.
- When Consumer Affairs ranked states by the condition of their roads, California was the fourth-worst.
- On education, US News ranks California in 20th place.