Why California is the only state where wages are falling – The Mercury News

“According to research” examines various rankings and scorecards that judge geographic location, but note that these performances are best seen as a combination of clever interpretations and data.

Buzz: California may be the only state where average weekly wages have fallen this spring, as jobs in the low-wage leisure and hospitality industries surged.

sauce: My trusty spreadsheet reviewed quarterly employment data from federal surveys of employer employment applications. These statistics are considered a more accurate snapshot of employment trends (number of workers and average weekly wages) than the more widely discussed (and more recent) monthly employment figures.

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Average weekly wages in California decreased by $10 (0.6%) over the year to $1,572 in the April-June quarter.

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Nationally, Idaho had the largest increase, with an 8.5% increase, followed by Vermont at 8.1%, Maine at 8%, Montana at 7.4%, and Georgia and Utah at 7.2%.

After California, the states with the lowest wage increases were New Hampshire at 0.4%, Washington at 1.6%, the District of Columbia at 2% and Arkansas at 2.4%.

California’s main rival Texas rose 6.1% to number 18, while number 10 Florida rose 6.5%. Nationwide wages rose 4.3% for him.


California bosses were in a hiring mood this spring.

California added more workers than any state – 950,000 a year. Next were Texas at 649,000, New York at 453,000, Florida at 435,000, and New Jersey at 231,000. California accounts for 16% of the 5.77 million jobs added nationwide.

Employment was impressive, even though California is the nation’s largest job market. The state ranked third with her 5.6% growth, beating her 4% expansion nationally.

Only 7.8% of Nevada and 5.8% of New Jersey performed better. California was followed by Texas at 5.2%, New York at 5.1% and Florida at 5%.

Also, the average weekly wage in California was high. Fourth place was $1,572, with Washington, DC at $2,139, Massachusetts at $1,637, and New York at $1,587. Texas was 14th with $1,284 and Florida was 22nd with $1,186. The national wage was $1,294.


California’s wage decline is undoubtedly largely due to the state’s leisure and hospitality industry’s slow recovery.

Recall that these companies remained held back by pandemic restrictions until mid-2021. And a surge in hiring in low-wage industries could lower statewide averages.

The Federal Employment Survey has yet to release industry-specific results for the spring quarter. But in his year, which ended in March, California’s leisure and hospitality industry added 432,000 jobs to him. That’s a 30% growth, or one-third of all California jobs. The average wage was $665 against $1,644 across all industries.

Wages in California were up 1% a year in March, but the loss of leisure and hospitality jobs pushed them up to 2.3% a year.

This statistical argument aside, the surge in low-wage jobs means that California’s enormous job growth has weakened its economic clout. Also, meager wages in leisure and hospitality jobs raise all sorts of questions about how these employees can financially survive in this high-cost state.

Not to mention how inflation wipes out wage increases at all wage levels. California’s consumer price index rose he 8.4% in the year ended June.

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According to this calculation, how did the state’s 10 largest job markets perform in the year ending in June? Wages Falling in Bay Area Counties…

Los Angeles County: Average weekly wage of $1,435, up 2.5% annually with 241,967 new jobs or 5.7% growth.

Orange County: Wages of $1,420, 78,523 new jobs or 5.1% growth, up 2.3% annually.

San Diego County: Wages of $1,420, up 3.2% over the year, 82,073 new jobs or 5.8% growth. Why California is the only state where wages are falling – The Mercury News

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