PULSE POINTS:
❓What Happened: California experienced a loss of 173,000 private sector jobs since January 2023, which was offset by a gain of 181,100 government and government-supported roles, many of which are part-time.
👥 Who’s Involved: Affected groups include elderly and disabled individuals employing household members with state funds, and the California Center for Jobs and the Economy (CCJE), which provided the data.
📍 Where & When: The changes occurred in California from 2023 to 2025, with ongoing implications for future fiscal years.
💬 Key Quote: CCJE noted, “California’s job growth has been dominated by government and government-dependent jobs in Healthcare & Social Assistance.”
⚠️ Impact: The state’s economy is seeing a shift towards government-subsidized jobs, potentially straining public resources as it faces a looming budget deficit.
IN FULL:
California’s employment landscape has shifted dramatically since 2023, according to a new report from the California Center for Jobs and the Economy (CCJE). Over two years, the state lost 173,000 private sector jobs, only offsetting the losses with 181,100 public sector government jobs and government-supported roles. Notably, a large proportion of the public sector employment is part-time, funded by the state to provide care services to the elderly and disabled.
The study revealed that 124,800 newly supported roles fall within health care and social assistance, with a significant chunk—55 percent—concentrated in the government’s household care program. These positions often involve familial care arrangements. Meanwhile, hourly wages in California have seen an uptick. However, the average hours worked have dwindled. This suggests that companies are reducing labor hours, a decision likely influenced by the state’s sector-based minimum wage increase.
According to the CCJE data, only the green energy and transportation sectors showed growth outside of the public sector—though even those jobs are still government-supported through regulatory mandates or direct subsidization. Critically, the report questioned the quality of the new jobs, pointing out that taxpayer-funded employment is not always a route to often-promised “good-paying” jobs but is mainly minimum wage, part-time, and short-term.
Meanwhile, the Legislative Analyst’s Office (LAO) forecasts a growing fiscal burden due to these employment trends. The In-Home & Supportive Services (IHSS) program, enabling seniors and disabled individuals to pay household members for services, will require a $28.5 billion budget in the upcoming fiscal year. With in-home care demand rising, the strain on public funds will likely increase, particularly as California anticipates demographic shifts such as a rising senior population.
By 2026, the state’s budget is set for a $20 billion deficit, which could escalate to $30 billion by the decade’s end.
