Opinion: Why is Gov. Newsom boasting about California’s weak economy?

Shipping containers at the Port of San Diego File photo by Chris Stone Times of San Diego This column was originally published by CalMatters Sign up for their newsletters Gavin Newsom loves to boast about the state he governs claiming that California is No in chosen category or that the state is leading in various economic or cultural activity Sometimes his boasts crumble in the face of reality such as his declaration that the state budget had a billion surplus and no other state in American history has ever experienced a surplus as large as this It was later revealed that the surplus claim was based on revenue estimates that were wrong by billion over four years leading to multibillion-dollar budget deficits Undeterred Newsom has continued his boastful approaches A inadequate weeks ago bragged that California were it a nation now has the world s fourth-largest business activity at trillion edging out Japan California isn t just keeping pace with the world we re setting the pace Newsom cheered Our financial market is thriving because we invest in people prioritize sustainability and believe in the power of innovation Veritably California s edge over Japan is more the aftermath of currency exchange calculations rather than productivity but trillion is still a big number Unfortunately its size masks the darker reality that by several measures California is doing no better than treading water As the Legislature s budget analyst Gabe Petek reported in a description on California s budget situation late last year California s market has been in an extended slowdown for the better part of two years characterized by a soft labor industry and weak consumer spending While this slowdown has been gradual and the severity milder than a recession a look at latest economic details paints a picture of a sluggish commercial sector Outside of authorities and medical care the state has added no jobs in a year and a half What Petek described six months ago is still true as up-to-date employment records indicate In April the state s unemployment rate was higher than all but two other states Michigan and Nevada and it s been stuck at that elevated relative position for several years Since February the state s labor force has grown by just workers a increase Beacon Economics noted in an analysis of the April input adding This slower expansion is being driven largely by the state s chronic housing shortage and the retirement of aging workers Justin Niakamal Beacon s research manager says it s laborious to see how California will be able to break out of its slow-growth cycle when there has been virtually no increase in housing production This is an elemental difficulty that is impacting the state s ability to grow its population industry and financial system A major indication of California s relatively moribund financial sector is what has been happening in the San Francisco Bay Area s device industry a sector that in essence has been propping up the entire state in newest years Having expanded during the COVID- pandemic to serve those confined to their homes and working remotely the industry has been shedding jobs month by month While Newsom cited numbers from the federal Bureau of Labor Statistics in claiming that California now had the globe s fourth-largest market system he didn t trumpet a newest bureau review that underscores the state s poor employment picture California has more than a million unemployed workers The new bureau document reveals that the ratio of jobless workers to job openings is the highest of any state jobseekers for every one open job To put that records point another way if every job opening in California were to be filled we d still have hundreds of thousands of Californians on the unemployment rolls That s nothing to brag about CalMatters is a nonpartisan and nonprofit news organization bringing Californians stories that probe explain and explore solutions to quality of life issues while holding our leaders accountable Want to submit a letter to the editor guest column or opinion piece Find our guidelines and submission form here