California job openings fall 30% as unemployment rate is second-worst in country

Job openings successful California plunged by astir 30% complete nan past twelvemonth and nan state’s unemployment complaint ticked higher to stay nan second-worst successful nan country, according to caller national data.

The Democrat-run Golden State — — which implemented a arguable $20 minimum costs hike for accelerated nutrient workers successful April — had 641,000 occupation openings successful August, compared to 920,000 successful August 2023, the information from nan Bureau of Labor Statistics showed.

Meanwhile, nan year-over-year unemployment complaint successful September accrued to 5.3% from 5% — much than a percent constituent supra nan nationalist complaint of 4.1%, according to nan data. Only Nevada had a higher jobless complaint astatine 5.6%.

California Gov. Gavin Newsom raised nan minimum costs for fast-food workers from $16 an hr to $20 an hr successful April. Getty Images

“Our small-business-owning members person been telling america for galore months that uncovering qualified labor has been a apical problem for them, muscled retired lately only by inflation,” National Federation of Independent Business California Director John Kabateck told blimpish news outlet The Center Square.

“Some of nan diminution successful occupation openings tin beryllium attributed to them conscionable giving up.”

The $20 minimum costs law, signed past autumn by Gov. Gavin Newsom, has been blamed for occupation cuts and shop closures crossed nan authorities arsenic employers struggle to support up pinch rising costs.

Between past autumn and January, California fast-food restaurants slashed 9,500 jobs successful anticipation of nan caller costs requirements, according to a study by nan Hoover Institution successful April, erstwhile nan caller rule took effect.

Employers for illustration Pizza Hut and Round Table Pizza began by firing much than 1,000 transportation drivers, while others for illustration El Pollo Loco and Jack successful nan Box said they will ramp up nan usage of robotics to slim down their staff, according to nan report.

The higher minimum costs – up from $16 an hr past twelvemonth – has besides been blamed for menu value increases and edifice closures, including Shake Shack and taco concatenation Rubio’s Coastal Grill.

“In general, nan highly precocious costs of surviving successful nan authorities and unaffordable lodging successful awesome cities has resulted successful galore employers struggling to prosecute introduction level jobs successful retail, building and location attraction contempt minimum costs maturation successful accelerated food,” Ted Jenkin, co-founder and business advisor astatine oXYGen Financial, told The Post.

California has nan second-worst unemployment complaint successful nan country, according to caller national data. AP

The authorities has besides seen a monolithic alteration successful backstage assemblage jobs — blamed partially connected precocious taxes and rampant crime from progressive policies — while authorities jobs person skyrocketed.

Since September 2022, California has mislaid a nett 154,000 jobs successful nan backstage assemblage and gained 361,000 jobs successful nan nationalist sector, according to nan Legislative Analyst’s Office, California’s nonpartisan fiscal and argumentation advisor. 

“Tech companies overhired post-pandemic arsenic they ramped backmost up successful 2020 and 2021 and are not experiencing nan maturation to support those hires,” Jenkin said.

The national jobs information does propose that California is continuing to create caller jobs successful aggregate, moreover though nan unemployment complaint remains stuck astatine 5.3%. 

California has seen an mean maturation of 16,500 jobs per period astatine an yearly complaint of 1.1%, supra past year’s 0.9% gait of 12,900 jobs a month, according to Newsom’s office. 

In October, California gained thousands of caller jobs for nan 53rd period successful a row, according to a property merchandise from Newsom’s office.

California’s maturation is powered by its workers and innovators, nan driving forces down our accordant economical maturation and expanding occupation market,” Newsom said successful a statement.