California is close to the bottom of 50 states, highlighting the weak economic recovery for the state in recovering from the massive lobe damage caused by the coronavirus-related business shutdown.
Despite California’s uneven economic picture, Governor Gavin News on Wednesday spoke of the state’s achievements during an anti-withdrawal campaign in San Leandro. The governor suggested that the two Sunbelt officials envy Vy to protect California’s current success from economic gain and deadly bugs.
“Eat your heart out in Texas and Florida,” Governor News said at the San Leandro event. “We’ve got good health results and good economic results.”
Yet an important barometer, California’s track record for recovering lost jobs during coronavirus outbreaks, may raise some doubts that California is at the top of its main rivals – even the country’s largest states.
The first two months of the lockdown, measured by the ability to regain jobs that were lost during March 2020 and April 2020, ranked California 10th out of 50 states.
A top economic official in the governor’s office proposed an evaluation of California’s job performance.
“California continues to lead the nation’s economic recovery, adding 114,400 new jobs in July, more new jobs than any other state and a six-fold increase in the number of jobs for the fourth time in six months,” said D. D. Myers, director of governor business and economic development.
At the end of July, California recovered 58.3% of the 2.71 million jobs lost in these two months last year. California has recovered only 1.58 million from its lost position, leaving a deficit of 1.13 million jobs.
Bottom line: California ranks 41st out of 50 states, according to the news agency’s official federal statistics analysis. The drill-down report measures lost jobs in March and April 2020, compared to jobs received from May 2020 to July 2021.
Scott Anderson, chief economist at Bank of the West, said: “The fact that California ranks 41st out of 50 states in terms of job recovery is certainly not a competitive challenge for California. “The state has faced long-term economic growth challenges that have manifested or accelerated the epidemic.”
But Stephen Levy, director of the Center for Continuing Studies at the California Economy, argues that California has acted wisely in emphasizing health-conscious shutdowns to help prevent coronavirus.
“The above average job losses in California and the Bay Area are a direct result of our harsh response to Covid compared to regions like Texas and Florida,” Levy said. “On the other hand, Texas and Florida have far more cases, hospitalizations and mortality rates than California and the Bay Area.”
The coronavirus has exposed the economic shocks that have hit the hotel, restaurant, travel and tourism sectors.
“By continuing to lead with science and information, prioritizing vaccines and making these workers and small businesses the most affected by this epidemic, we have created the conditions for a strong economic recovery,” Myers said.
Anderson, however, cites two weaknesses in California that have been exacerbated or exacerbated by the coronavirus: the high cost of living and doing business.
“Epidemic families are rethinking their lives and businesses their business models,” Anderson said. “A lot of people today are looking at California and the Bay Area and don’t like what they see, or they see green pastures.”
The Bay Area has revived jobs in California and slowed the pace of recovery across the state. The Bay Area has regained only 48.2% of its lost jobs.
Jeffrey Michael, director of the Stockton-based Business and Policy Research Center at the University of the Pacific, described the weak results in the Gulf region as “very interesting.”
New York and Illinois joined California in the bottom 10
“High-value urban areas have the weakest recovery,” Michael said. “It has damaged major urban centers such as the Bay Area, Los Angeles, Chicago and New York City.”
The former High Flying Gulf region has managed to do only three of the country’s three states to regain lost jobs.
With the exception of New York, all of California’s major state rivals are unable to recover lost jobs in California from March 2020 to July 2021, according to official Federal Report figures.
“California has closed its economy tighter than many other states and was slow to reopen,” said Mark Whitner, a senior economist at Wells Fargo. “Moreover, the lockdown had very little flexibility, so many businesses that could be safely reopened were not allowed to reopen.”
Utah, Idaho, Arizona, North Carolina, Georgia, Tennessee, Texas, Colorado, Florida, and Nevada all lead the world in the race to recover the jobs that were jetted off at the start of the business shutdown in the spring of 2020.
These states are often said to be able to successfully entice jobs, companies, and corporate headquarters away from California.
“California’s inability to implement a system that allows businesses to safely reopen on a timely basis has clearly affected state competition and has been a major factor for companies moving to Texas, Arizona, Tennessee, Florida, Georgia and Carolinas,” said Vuitton.
The United States has previously charged California and recovered nearly three-quarters -74.5% of lost jobs nationwide.
The two states, Utah and Idaho, actually got more jobs now than they lost. Four states, Montana, Arizona, North Carolina and South Dakota, have recaptured at least 0% of their lost jobs and are recovering well.
Twenty states have recovered at least 75% of their lost jobs. This second tier includes Georgia, Tennessee, Texas, South Carolina, Indiana, Colorado and Florida.
Thirty-six states have recovered at least 67% of their lost jobs. This third tier includes Missouri, Michigan, Washington State, Wisconsin, Ohio, Pennsylvania, Nevada and Massachusetts.
Michael Bernick, a former director of the state’s Department of Employment Development, said California’s hiring picture could be brighter if workers avoid the ongoing collection of unemployment benefits and seek employment instead.
“We’ll get a better picture in the next few months of whether California is slowly returning to work or starting hiring,” Bernick said.
In San Leandro this week, the governor said California boasts the fifth largest economy in the world. Newsom cited California’s economic performance in an extended period.
“There is no Western democracy on a planet that has grown faster than the state of California in the last five years,” Gov. News said. “We’re American Job Recovery Tent.”
Still, it’s not clear what the nature of the California tentpole is or how tough it is.
This is because the return of jobs in 2021 after the coronavirus recession in 2020 is very different from the recovery before the recession, says Christopher Thornberg, a founding partner at Beacon Economics. References to the recession that erupted more than a decade ago due to the housing bubble and the financial crisis
According to Thornberg, the 2007-2009 recession was caused by a housing bubble and the financial crisis, which made companies reluctant to hire unemployed workers.
In the wake of the Covid recession, employers are eager to hire workers, but workers have not rushed to fill vacancies, Thornberg agrees.
“Now the economy is back and companies want to hire but can’t,” Thornberg said.