New Study Released Regarding California’s Economic Performance

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Next 10, an independent think tank, has released a new report that compares the recent performance of California’s economy with other states. One of the key findings was that although economic growth in California in recent years has been on par with most other states, job growth has trailed many other states. This has been especially true of the manufacturing sector, where there have been significant declines, while manufacturing employment in Texas and some other states has increased. This analysis seems to confirm a trend that should be of great concern to policy makers in California. Another concern raised by the report is the lack of growth in wages. Although median weekly earnings in California are higher than many other states, growth in median weekly earnings has been stagnant over much of the last decade. In short, California workers have been steadily losing ground compared to workers in other states. Poverty rates in California are well above the national average, as well as above the average for western states. The authors of the report, David Neumark and Jennifer Muz, note the high cost of doing business in California. This report seems to be further evidence that state government needs to focus on job creation, especially in the manufacturing sector. Click here to read the full report.

Article contributed by Rob Neenan, President/CEO

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