Every manufacturing investment and job creation decision is made by company executives who are looking down the road at future costs, taxes, and regulations. Many states and countries want to attract manufacturing investments and jobs. If they have longstanding policies that will be in effect for ten or more years, they will beat out the locations with policies that expire in the short term. In fact, the larger and more important the investments, the more risk averse company executives will be; they will assume the expiration in existing law will occur, as promised.
Lawmakers may believe that California will nevertheless attract manufacturing jobs and investments even without the policies under discussion, but the data states otherwise. Since 2001 California has attracted less than 2 percent of US manufacturing new sites or expansions, far lower than the state’s share of manufacturing GDP. More recently the re-shoring surge shows a similar loss to the rest of the country, with under 2 percent of those jobs coming to California since 2013. That means manufacturing jobs and investments are now shifting to other locations under our noses and long-term policies to keep manufacturers here are crucial.
There are many important issues that the legislature will continue working on this summer, including a myriad of bills to address our housing crisis, an extension of Cap and Trade and an L.A. Area Chamber-sponsored bill that would create an Emergency Child Care Bridge Program for foster children. But as is the case every year, there are many bills that California just doesn’t need.
Fewer workers are moving to the Bay Area than in the past, further exacerbating the scarcity of skilled workers for in-demand fields. The total number of workers arriving in the Bay Area still exceeds the number of workers fleeing the region, but
The total number of workers arriving in the Bay Area still exceeds the number of workers fleeing the region, but net number of new arrivals has fallen 17 percent since February, according to June data out from LinkedIn. By comparison, Seattle saw a net migration increase by 2 percent over the same period.
Nonfarm payrolls rose by a seasonally adjusted 138,000 in May from the prior month, the Labor Department said Friday, and job gains in the prior two months were revised down. The unemployment rate fell to 4.3%, the lowest reading since May 2001. Economists surveyed by The Wall Street Journal had expected 184,000 new jobs to be added in May and a jobless rate of 4.4%.
U.S. manufacturing activity expanded and hiring at factories picked up in May, signs of healthy growth for a key sector of the economy. The Institute for Supply Management on Thursday said its closely watched index of U.S. manufacturing activity inched ahead to 54.9 in May from 54.8 in April. A number above 50 indicates expansion. ISM manufacturing readings for each month this year have now been higher than any month in 2015 or 2016.