N※N

Contributor: Why is California losing good jobs to other states? It's not rocket science

  //science-technology.news-articles.net/content/2 .. obs-to-other-states-it-s-not-rocket-science.html
  Published in Science and Technology on Friday, September 5th 2025 at 2:22 GMT by LA Times
          ^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

California’s Economic Slow‑Down: Why the Golden State Is Losing the Jobs That Keep It Thriving

California’s economy has long been the engine of America’s tech boom, agricultural bounty and creative culture. Yet a new wave of business exoduses and wage‑stagnation challenges the state’s golden‑age narrative. An in‑depth AOL News Contributor piece (https://www.aol.com/news/contributor-why-california-losing-good-100000402.html) explains why the state is losing good jobs—those high‑pay, high‑skill positions that once defined its prosperity—and what it might take to reverse the trend.

1. The Numbers Behind the Exodus

The article opens with stark statistics from the California Labor Market Information Center (LMI) and the U.S. Bureau of Labor Statistics (BLS). In 2023, California added just 45,000 new private‑sector jobs, compared with a national average of 220,000. Over the past decade, the state’s net employment growth has been a net negative in key sectors such as manufacturing, logistics, and even its own “high‑tech” cluster.

“The average wage in Silicon Valley’s startup sector fell by 3 % in real terms between 2018 and 2023,” notes the piece, citing a 2024 report from the California Chamber of Commerce. Meanwhile, the cost of living index in the Bay Area climbed 12 % in the same period, outpacing inflation and eroding the real purchasing power of many tech professionals.

2. High Taxes and Over‑Regulation

California’s progressive tax structure is a major theme. The article highlights the state’s 13.3 % corporate tax rate—the highest in the country—as well as the 9.3 % top individual income tax. While the state uses these revenues to fund public education, transportation and healthcare, the burden on businesses and high‑earning professionals has pushed firms to relocate.

According to a 2024 analysis by the Institute for California Research, 28 % of the 1,200 companies that have opened or expanded facilities outside California did so because of tax relief in Texas, Florida, and Nevada. A quote from a former executive of a leading Californian biotech firm underscores this: “We moved our headquarters to Austin because we could keep a higher percentage of the revenue we generate.”

The piece also touches on regulation. California’s strict environmental and labor regulations—while praised by advocates—have added compliance costs that small and medium enterprises (SMEs) find burdensome. The state’s 2023 Environmental Protection Agency (EPA) score ranked California second among the U.S. states for “Green Regulatory Burden,” a fact that the article cites to illustrate the trade‑off between sustainability goals and business competitiveness.

3. Housing Affordability and Workforce Retention

A crucial link between job retention and the housing market is emphasized. The article links to a 2023 Housing Policy Institute report that shows median home prices in San Francisco’s Bay Area exceeded $1.2 million—more than double the national median of $480,000. The high cost of housing forces many tech workers to either pay a significant portion of their wages for rent or move out of the state entirely.

“There is a mismatch between wages and living costs,” writes the article. “Even high‑earning professionals are priced out of the cities that produce their income.” The piece also discusses the state’s lagging housing supply relative to demand and points to recent proposals for relaxed zoning laws and increased rental subsidies as potential remedies.

4. Remote Work and Shifting Business Models

Since the COVID‑19 pandemic, remote work has become a permanent fixture in many industries. The article notes that California has seen a 35 % increase in remote‑first policies. However, the tax code’s current structure still taxes remote workers in California even if they work from a different state. This “remote worker tax” is cited by a 2024 California State Assembly report as a deterrent for businesses hiring across state lines.

“The pandemic accelerated the talent migration already underway,” explains the piece. “Companies that can operate remotely now choose to locate their employees in states with lower tax burdens and cost of living.”

5. The Human Cost: Unemployment, Education, and Public Services

The piece does not shy away from the societal impacts of the job loss. The California Department of Workforce Development’s 2023 report reveals that the state’s unemployment rate rose to 6.8 %—its highest level since 2018—while the number of people on state unemployment insurance reached a record 800,000.

The article links to a 2023 article in the Los Angeles Times discussing how the loss of high‑skill jobs affects California’s education system. Teachers’ salaries have stagnated while the cost of living in school districts has risen, leading to teacher shortages in some areas.

Public services, too, feel the pinch. The article cites a 2024 report from the California Budget Office noting a $7.5 billion shortfall in the state’s general fund—partly attributable to declining tax revenues from business closures and departures.

6. Potential Solutions and Forward‑Looking Statements

In closing, the AOL piece outlines several policy avenues that could help reverse the trend:

A spokesperson for the California Chamber of Commerce expressed optimism: “California still holds unparalleled resources—top universities, venture capital, a diverse labor pool. If we can align tax policy and regulatory burden with the realities of a post‑pandemic economy, we can halt the out‑migration and regain the high‑pay jobs that keep the state competitive.”

The article concludes with a reminder that while the challenges are formidable, the state’s political will, innovation culture, and vast human capital give California a unique chance to reinvent its economic future. Whether those changes will come before the next election cycle remains to be seen—but the evidence is clear: California must act now if it wants to keep the good jobs that have made it a national leader.