Occupational licensing requirements have a widespread and deep reach in California. The Golden State ranks 7th in the nation for licensing burden, with a total of 62 low-income occupations licensed and requiring an average of 549 days of education. These licenses have cast a wide net, with one out of every five Californian’s needing to receive permission to work from the government . By restrict entry into the market occupational licenses also result in lower job growth. Specifically, licensed industries experience up to 20% lower job growth than their unlicensed counterparts. This has prevented the creation of 3 million jobs nationally, according to a study from the Upjohn Institute for Employment Research. Occupational licenses also increase wages at the cost of consumers. While we can cheer hooray for those licensed workers who now enjoy 15% higher wages, the party is ruined for consumers who now fork out an additional $203 billion a year. In fact, the increase in consumer prices in licensed industries ranges from 5% to a whopping 33%.
Apple today has only one plant of its own—in Cork, Ireland. Its contract manufacturers operate two small U.S. plants, in Austin, Texas and Fremont, Calif. Those facilities have never grown beyond their narrow role making Apple’s Mac Pro computer, a niche product that sells for $3,000 or more.
. . . Apple last opened manufacturing facilities for computers in the 1990s with plants in Fountain, Colo. and Elk Grove, Calif. It shut down its last U.S. manufacturing line in 2004, laying off 235 full-time workers in Elk Grove.
In theory, the high-wage jobs of the technology industry could be filled by people working anywhere. But in practice, the best tech jobs in the U.S., offering salaries in excess of $100,000 a year, are becoming increasingly concentrated in the metropolitan areas of just eight cities, according to new research. The eight leading U.S. tech hubs account for slightly less than 10% of U.S. jobs and about 13% of overall job postings. But the cities — Seattle, San Francisco, San Jose, Austin, Raleigh, Washington, Baltimore and Boston — account for more than 27% of the listings for U.S. tech jobs, research from Jed Kolko, the chief economist of the job-search website Indeed, shows.
As if businesses were not troubled enough by substantial penalties tied to minor labor law infractions when private attorneys take on lawsuits under the Private Attorney General Act (PAGA), a California Supreme Court ruling has opened the door for more business burdens when confronting PAGA lawsuits. In a recent unanimous decision in Williams v. Marshalls the court ruled that plaintiffs attorneys have the right in discovery to examine all of a company’s employee records—whether employees worked at the site the alleged infraction took place or not. The plaintiff does not need to show good cause that the company had a statewide policy that violated labor laws before businesses are required to produce the information.
Drilling down, the paper found the law drove people to make different choices about work. “Middle-income individuals reduced their labor supply due to the additional tax on earnings while lower income individuals worked more in order to qualify for private insurance,” the authors wrote. “In the aggregate, these countervailing effects approximately balance” in terms of their impact on overall participation rates.