California Jobs Numbers Revised Downward By Hundreds Of Thousands Leaving Nearly No Job Creation In 2023

California’s highly respected nonpartisan Legislative Analyst’s Office has reported in great detail that for the twelve months ending in September 2023, that the Federal Department of Labor and related agencies overestimated job creation in California by over 277,000 jobs total leaving only 50,000 jobs created statewide during the period.

ADDING FURTHER PROBLEMS THE FEDERAL STATISTICS UNDERESTIMATED THE INCREASE IN GOVERNMENT WORKERS

The monthly survey sample also underestimated job growth in healthcare and government.  - Legislative Analyst Office Findings March 13, 2024

As this chart shows, almost 100% of the misread in job creation were in the most highly compensated fields. In turn, policy makers making decisions on the 2023-24 fiscal year budget that at the time of signing in June 2023 was reported to have a $97.5 billion budget surplus used this bad data to project current and out year income tax revenue figures that were much higher than actually came in as the state slipped into deficit before the end of 2023 and currently is struggling against an estimated $73 billion in multiyear debt.

IF YOU WERE WATCHING THE PHILLY FED HOUSEHOLD SURVEY YOU AREN’T SURPRISED

One of the most closely watched employment reports is the Philadelphia Federal Reserve’s Household Survey and throughout the same period of the overreporting of jobs by the National Department of Labor, the Household Survey showed a vastly different picture that ended up being highly accurate.

The Association of Western Employers is dedicated to helping create career building jobs across the West and throughout the world and we are following this story very closely as this was a long term major mistake.

Check back often for more news on employment, real growth in GDP, and key factors that influence employment growth.