The Blubber

California’s private sector is significantly trailing behind the broader U.S. post-pandemic job recovery, according to an analysis by Stanford University's Hoover Institution.

While the U.S. economy saw a strong gain of 7.32 million private-sector jobs from January 2022 to June 2024, California’s contribution was minimal, adding just about 5,400 jobs, according to a report published Wednesday by the think tank.

If California's job growth had matched the national rate, the state would have added nearly 970,000 jobs — approximately 180 times more than the actual increase, according to the report authored by Lee Ohanian, a Hoover Institution fellow and economics professor at UCLA. California, home to about 12% of the U.S. population, has the world’s fifth-largest economy by GDP.

Ohanian used data from the Bureau of Labor Statistics, excluding government jobs, to assess private-sector employment changes in the state. Since early 2022, he found that nearly all job growth in California came from government positions.

During the past 18 months, a period of rapid national job growth, California actually lost 46,000 private-sector jobs. The total number of jobs in the state remains below pre-Covid levels, and California shares the highest unemployment rate with Nevada.

The data highlights the loss of both residents and businesses in the Golden State since the pandemic. California’s population has decreased by over 570,000 since 2020, according to Census Bureau data. In just the past week, Elon Musk’s social media platform X announced plans to close its San Francisco office, while Chevron Corp. revealed it would move its Bay Area headquarters to Texas, joining other companies drawn by lower taxes and more business-friendly regulations.

A report last month from California’s non-partisan Legislative Analyst’s Office detailed significant job losses in the state’s technology sector since 2022, with Google, Apple, Disney, and Netflix among the major employers affected. The report also noted steep job losses in California’s finance and insurance industry, including companies like Wells Fargo, Bank of America, and Visa.