More than half of the states in the nation have been doing extremely well in the area of job creation and growth. The state of Texas has added more than 25,000 positions, and Florida added almost 22,000 to their state payroll. California has been one of the best states to notice job growth and a drop in their unemployment rate. Recent data shows that the employers throughout California were able to add 60,400 jobs, in the month of December alone. This is one of the largest single month job growth numbers seen for the state over the past three years.
A look at California’s job growth stats
Governor Jerry Brown has been boasting about his state over the past several months, even referring to the job growth as a California comeback. Based on numbers, California added jobs at a faster rate than the rest of the nation. They had a 2.9 percent faster rate than the 1.9 percent nationwide rate. In addition to job growth, unemployment rate remained about the same from November to December with 5.8 percent.
The construction industry in California noticed one of the fastest growth rates, with expanded payrolls at 8.6 percent. Professional and business sectors were also up 5 percent, while manufacturing was down slightly. According to a California Solar Jobs Census report, one in three employees works in the solar industry in California. 2015 was a record breaking year for this sector as they added at least 20,000 jobs throughout the state.
Will California continue this trend?
Officials are questioning if the state can keep these numbers up, especially with the economic slowdown currently going on in China. This might have an effect on the American market, but as of right now, the state remains in a “yellow zone”.
Experts believe that California is more susceptible to the China slowdown, simply because of their location. Agriculture in the area has noticed a change due to the slowdown, as export of dairy and nut products have slightly declined. Fortunately, California agriculture export only represents just above 1 percent of the state’s overall trillion dollar economy.
Sung Won Sohn who is an economics professor at Cal State Channel Islands, believes that California might have hit their peak when looking at job growth. This is especially true with China’s slowdown because if China stops buying product from one country, then that country might stop buying product from locations in the United States, specifically California.
Future job growth projections
Although Sohn believes California has hit their peak, that doesn’t mean that they should expect to see any setbacks. Economist at UCLA Anderson Forecast, Jerry Nickelsburg, predicted that California’s job market would grow at a rate of 2.1 percent. His estimates have not changed, even with information about China’s slowdown. Chief Economist of the Los Angeles County Economic Development Corporation, Robert Kleinhenz, agreed with Nickelsburg stating that the U.S. economy is doing well enough that we should see continued growth for the 2016 year.
Do you think California will remain one of the top states for job growth in 2016 or do you think another state has a chance to do better? Let us know in the comments!