California’s job growth paints a grim picture for the private sector. Between January 2022 and June 2024, 96.5% of all new jobs in the state were in government. Out of approximately 156,000 jobs created, nearly 150,000 were taxpayer-funded positions. Meanwhile, private-sector employment declined by over 46,000 during this same period.
While the nation’s private-sector employment surged by 7.32 million jobs, California contributed just 5,400—a mere 0.07% of the national total. Had California kept pace with the rest of the U.S., private-sector jobs would have grown by 970,000. The state’s underperformance is a stark outlier.
Economic pressures weigh heavily on the Golden State. Median home prices exceed $900,000, and gasoline prices are the second-highest in the nation. These costs have driven out businesses and residents alike. Between 2022 and 2023, California’s population shrank by 75,000, intensifying the drag on its economy.
Infrastructure and public services don’t justify the high costs. California has the nation’s highest gas taxes, yet its roads rank among the worst. Public schools fare no better, with only 25–30% of students proficient in core subjects like math and science.
Government employment dominance suggests a deeper economic issue. As private enterprise shrinks, California increasingly relies on the public sector for job creation. Critics, like Hoover Institution’s Lee Ohanian, warn of broader implications, calling the state’s private-sector collapse “unprecedented” and a “drag on the nation’s economy.”
The trends reveal systemic challenges, not just for California but for the nation. A state with nearly 12% of the U.S. population should lead in private-sector innovation, not trail behind. Instead, the reliance on government jobs signals a concerning shift for taxpayers and businesses alike.
96.5% of new jobs in California are government jobs 🤯 https://t.co/2fUBqaHOGS
— Peter St Onge, Ph.D. (@profstonge) November 26, 2024
Sources:
https://www.hoover.org/research/californias-businesses-stop-hiring