California’s slowing economic expansion was evident in August as the state lost 8,200 net jobs and the unemployment rate rose to 5.1%, from 4.8% a month earlier, according to data released Friday from the state’s Employment Development Department. The drop in employment follows a robust July in which the Golden State gained the most jobs in more than a year: 84,500, revised up from a previous estimate of 82,600. August’s slide back was in large part driven by employers in the leisure and hospitality sector: They cut 12,400 jobs on a seasonally adjusted basis — the largest decrease by any sector in the state. Professional and business services and the public sector also lost jobs. Manufacturing and the trade, transportation and utilities sector, meanwhile, gained jobs.
So, yes, California remains a capital for innovation, but only until all the union work rules crush that one bright spot in the economy. Meanwhile, the rest of the state is becoming something of an innovation-free zone, given lawmakers’ ongoing efforts to saddle businesses with bone-crushing regulations and tax rates. If Brown really believes in innovation, he ought to worry less about federal funding and more about the way his union allies mess with the Golden State’s economy.
Democratic lawmakers are siding with organized labor in its battle with automaker Tesla, inserting a provision in a last-minute bill to spend $1.5 billion in cap-and-trade money. The package largely spends funds on a variety of anti-pollution programs, such as those to retrofit and replace smog-belching big rigs and buses. But the legislation, amended late Monday to be ready for votes before lawmakers adjourn for the year on Friday, also would inject the state into an increasingly acrimonious union organizing campaign at automaker Tesla’s Fremont plant. Companies that want to be eligible for the state’s zero-emission vehicle rebate program – a major driver of Tesla sales – would need to be certified by the state labor secretary “as fair and responsible in the treatment of their workers.”
San Mateo-based SolarCity Corp. and its parent, Tesla Inc., plan to lay off more than 200 employees at their Roseville offices, part of continuing restructuring in the aftermath of Tesla’s acquisition of SolarCity last fall.
Brocade is laying off employees at its headquarters even before its $5.9 billion merger with Broadcom closes. One analyst says it's a sign that Brocade's presence in San Jose, where it has several thousand employees, could vanish altogether.