California, which has a wealth of talent in major industries like film and technology, has lost thousands of workers to states with lower living costs and other benefits, according to a recent report.
Nearly 87,000 workers are flocking from California to other states in search of new jobs, according to a study by the National Association of Realtors, which analyzed U.S. Census data for the third quarter of 2023. , it was found that the Golden State had only added 69,000 new workers. The group released its findings last month.
Popular destinations for California job seekers are Texas, Arizona, Washington, and Nevada.
California’s job market remains strong, but the high cost of living and lack of affordable housing, especially in cities like Los Angeles and San Francisco, are causing people to accept jobs elsewhere. That’s part of the reason, said Nadia Evangelou, senior economist at Realtors. Association.
“The lack of affordable housing doesn’t just impact homebuyers; it also impacts the state’s ability to retain talent,” she said. “This trend is concerning because it reflects the financial burden that high housing costs place on professionals, even those with stable incomes.”
The findings highlight some of the challenges California faces in trying to keep workers in the state. California, known for its sunny skies and scenic beaches, mountains and deserts, also faced major hurdles last year, including strikes in Hollywood and mass layoffs in the tech and media industries. This could also lead workers to consider whether to seek new opportunities in other states that don’t have income taxes, such as Texas.
California lost more workers than any other state in the analysis, with a net loss of 18,485 jobs.
Conversely, states in the Southeast and Southwest gained the most workers, the analysis found. Virginia, with its abundance of government contracting, technology and defense jobs, saw a net increase of 7,191 immigrants, more than any other state analyzed. Texas, Tennessee, South Carolina and Georgia were the top five gainers.
There are limits to the analysis by real estate industry organizations. Census data does not include Alaska, Michigan, Mississippi, or North Carolina. The analysis also focuses on people who quit their current job for a new job, rather than workers who were laid off.
Because larger states tend to have more people moving in and out, the industry group also looked at other metrics to gauge how attractive a state is to people changing jobs. The research group calculated the ratio of people moving to a state to all job changers in that state, and found that South Carolina, Maine, Montana, and Tennessee were the most attractive states for job changers.
Stabilizing mortgage rates and increasing housing supply could help California slow the exodus, but the state is also competing for talent, Evangelou said.
“Unfortunately, this situation will continue as it depends on supply and demand,” she said.
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