California’s unemployment rate hits 7.5%, as businesses continue to flee the high-tax state
Status of california A job report was released on Friday showing the highest unemployment rate in the country. California alone represents a third of the total unemployed in the country.
California Department of Employment Development September Jobs report good showed that the state had gained 47,400 jobs since August, but the unemployment rate stood at 7.5%, making Nevada the highest in the United States.
Additionally, unemployment claims rose to 80,700 last week, a third of the total claims in the country.
Democratic government of the state. Gavin Newsom The report painted an optimistic picture of blaming coronavirus pandemic for slowing growth but claiming that the state has “average record job creation”.
“Our economic recovery is making promising progress with 812,000 new jobs this year and more than 63 percent of the jobs we’ve lost to the pandemic,” Newsom said in a statement. release. “As we continue to create record jobs, our job is more important than ever to get more Californians back to work and support those most affected by the pandemic.”
“Within the past eight months, California has created 812,000 new jobs, more than any other state,” Newsom said. “That average is about 101,500 per month.”
In June, and several times since then, Newsom Claimed That California is “coming back” under his leadership, but economic indicators, including a recent jobs report, have suggested the return is moving slowly.
Since the beginning of 2018, California has seen 265 companies move their headquarters out of state — 74 of which left in the first six months of 2021, according to a new analysis Published by the Hoover Institution, a right-wing think tank at Stanford University. By comparison, 62 businesses moved out of state in 2020, while 78 relocated in 2019. In 2018, 58 companies moved out of state.
Migration is taking place in a wide range of industries such as manufacturing, aerospace, financial services, real estate, chemicals, health care and technology. Headquarters exits include big tech legacy firms like Hewlett-Packard Enterprises and Oracle, but also smaller, fast-growing firms like Darvis, which helps digitize hospital logistics, sanitation and documentation.
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The biggest reason companies move out of state is finance: California is “too expensive, too regulated and very heavily taxed, both for the companies and the workers they hire.”
This is evidenced by new destinations for departing companies: low-cost states, fewer regulations, fewer taxes and a higher quality of life for workers are prime choices for businesses. Since the beginning of 2018, Texas has seen 114 companies formerly based in California relocate to the state.
According to Govt. Greg Abbott (R), meanwhile, Texas Leading job creation across the United States in September. According to Abbott, Texas had nearly twice the number of new jobs in September than California.
Granthshala News’ Megan Heaney contributed to this report