Despite Newsom’s Claims, California Continues to Lag Behind in One Major Area

Written by T. Logan Dayne

When Governor Gavin Newsom bragged about the California economy saying, “We are world-beating in terms of our economic growth,” he left out one key detail. Despite attempts to gloss over it, the fact remains that California’s unemployment is one of the highest in the country. Reports from the Bureau of Labor Statistics indicate that 9 of the 15 metropolitan areas with the highest joblessness rates are found within California. So when Newsom says that California is “dominating in every category” it may not be in the best of ways.

The rate of growth for California in October would have been the worst in the country had it not tied with Nevada. Both states currently sit at a jobless rate of 7.3%.  No one is holding their breath waiting for Newsom to take credit for this key detail though. It is in part his and other legislators’ policies that have stifled the state’s growth. Blue states and their subsequent policies lean towards being hostile to businesses and job growth. Regulations and higher taxes tend to discourage a thriving job market and investment in innovation and new business.  The state with the lowest rate is Nebraska which sits at 1.3%.  States like Texas and Florida who have been more business-friendly even before the pandemic currently sit at 5.4% and 4.6%. Renowned journalist Dan Walters commented, “It could just be coincidence, of course, but maybe those red states with low unemployment rates have regulatory tax policies that encourage job-creating investment and maybe California and other blue states with high jobless rates are perceived as being hostile to business.” Another observation pointed out was that 8 out of 10 of the lowest unemployment rates in October were red States and 9 out of 10 of the highest joblessness rates were blue. This sentiment is also not lost on the citizens of California. According to a new poll 52% of Californians surveyed expected bad times ahead, a rise of 8% in only 4 months. Those who expected good times ahead dropped by a similar amount, from 54% to 47%.

There is little evidence of that improving with Newsom ordering new mandates. California may be able to brag about its weather and still being home to influential businesses in Silicon Valley, but it’s economy is far from being the gem of the country as it once was. 

Photo Cred: Justin Sullivan/Getty Images