Governor’s Executive Order on Encampments Important Step in Addressing Homelessness
The statewide business community commends Governor Gavin Newsom and the California Legislature for the passage and signing of a series of bills designed to address the ongoing retail theft crisis affecting businesses across the state.
Quick Facts: California Employment Report for June 2024
Both the nonfarm job and employment numbers showed positive gains in June. At 22,500, the nonfarm job gains were in line with the pre-pandemic average of 20,800 from 2019, while the stronger May gains were revised only marginally. These two months of positive news, however, were not enough to offset California’s weak ranking in net jobs growth among the states, which remained in 4th place below North Carolina.
California Energy Price Data for June 2024
In April, California again posted the highest electricity rates among the contiguous states across all three major end use sectors. California gasoline and diesel remained the highest as well, with taxes and fees rising at the beginning of July to partially offset the drop in price per gallon. The tax and fee component is scheduled to rise substantially over the next few years in response to ongoing Air Resources Board rulemakings.
California Trade Report for May 2024
The May trade numbers in general showed positive news for California. Both origin exports and destination imports were up compared to May 2023. In nominal dollars, total trade through the state’s ports rose in this period, and the share of total US trade, while remaining well below previous highs, continued edging up.
Full May 2024 Jobs Report
While nonfarm jobs were more positive in May, the labor force numbers continued to post weak results. Although dropping 0.1 point to 5.2%, California’s unemployment rate (seasonally adjusted) was again the highest among the states for the 4th month in a row. The DC rate was marginally higher at 5.3%, but among the states, California was the highest.
QUICK FACTS: California GDP and Personal Income in the 1st Quarter
California real GDP slowed to an annualized rate of 1.2% from 3.1% in 4th Quarter 2023. California was below the overall US average of 1.4% and posted 28th highest among the states. Using the current projections from the April International Monetary Fund, World Outlook, continued growth at the current GDP rate would push California below India to shift from 5th to the 6th largest economy by 2025.
Analyzing High Earner Migration and its Impact on State Revenue
The migration of high earners to other states showed only minor changes in 2022, according to the annual release of tax migration data from the Internal Revenue Service (IRS).
In tax year 2022, the number of high earner households leaving the state increased 7.2% to 48,875, taking with them a total AGI (adjusted gross income) of $31.5 billion. This increase was partially offset by a rise in the number of high earners moving into the state, rising to 24,205 with total AGI of $15.5 billion.
Quick Facts: California Employment Report for May 2024
Both the nonfarm job and employment numbers showed positive gains in May but again at different scales. Nonfarm jobs rose by 43,700, while the previously reported April gains were revised down by 1,100 to 4,100. With the preliminary May results, nonfarm jobs have now averaged gains of 17,000 in the first 5 months of 2024, higher than the 6,400 average set in the same period last year and closer to the 20,800 average for the entire pre-pandemic year of 2019.
California Trade Report for April 2024
Dominated by the surge in imports, total trade through the state’s ports rose $8.4 billion (13.3%) compared to April 2023. On a nominal basis, total trade through the state’s ports in the first 4 months of the year was 8.3% higher than the same period in 2023, and only $10 billion below the level reached in 2022.
California Energy Price Data for May 2024
In March, California continued its energy cost trifecta with the highest residential, commercial, and industrial electricity prices among the contiguous states. These rankings join the highest cost postings for gasoline and diesel as well.