New data indicates that the California job market – and thus, the state’s overall economy – is slowing. California employers collectively reduced fourteen hundred jobs across the state in June 2017. According to the Los Angeles Times, this is the second month in 2017 in which the state has posted job losses. April 2017 saw an even greater decrease in California’s employment market. Job growth in 2017 is significantly lower than California’s 2016 job growth.
There are many causes to these job losses. Economic consultant Chris Thornberg posits that there are jobs available, but many workers simply cannot afford to live in California. A shortage of available housing has increased California’s notoriously high home prices and rental rates even further. This is certainly true of Silicon Valley: The New York Post reports that many technology companies are expanding operations outside of the pricey area. While Silicon Valley has experienced job losses over the past five years, both Seattle and Austin are experiencing job growth in the technology sector. The Press-Enterprise even speculates on whether California is experiencing another “tech bubble”, and the state’s ability to survive a burst of such an economic bubble. The fact that many technology firms are slowly leaving the state is not a positive sign for the technology industry, not the state’s overall economy. Continue reading