According to California employment officials, the state added more jobs than any other in the nation. The latest reported increases for May came in at just over 19,000 new jobs which accounts for a quarter of the overall employment growth for the month across the country. With a leading position throughout a diverse network of industries and a notoriously strong hold on the tech sector, job growth rates in the area reflect how well both the state and the businesses who are located there are doing.
However, filling up these employment opportunities are not all new residents. The state’s labor force grew only by 0.7% over the last year, a figure that includes both people with jobs and those currently looking for work. As other locations are seeing increases in workforce expansion, California may have the jobs but not necessarily the stream of professionals relocating to the state for them.
Stemming from two main factors including housing availability and affordability, the state has seen a decrease in the volume of new populations coming to live there for employment opportunities. Businesses have also started to move away from California in seek of alternate locations that offer comparable resource networks, workforce bases and commercial opportunities at overall lower costs. “Texas has been one of the top places both California residents and businesses are relocating to as a result of the similar opportunities it presents without the saturated and inflated market.” shares Texas-based entrepreneur Marcus Hiles.
Recent news also highlighted that California has been introducing new regulations that deter increases in relocation rates. Through tax burdens that target California residents who are looking to make the move out of state, new regulations require residents to prove they permanently or indefinitely want to change their domicile; the state in which determines income, estate and other taxes. This becomes increasingly complicated for those residents who will have existing ties in the state even after they establish residency in lower-tax locations. Despite these new regulations as housing, living and commercial expenses increase, more of the state’s population is actively looking to establish legal residence in areas where liabilities are limited.
“Although not yet up to scale with California’s strength in the technology sector, tourism, healthcare and education network, states like Texas are quickly presenting new opportunities that will continue strengthening as more people turn to alternative locations as a means for future growth.” adds Marcus, a CEO and founder of one of Texas’ leading property firms that has experienced increases in demand from such relocation trends.
California may be the leader in a lot of arenas, but a growing network of states are making that position harder to retain as each year passes. The trend of location diversification among businesses is helping more areas across the country benefit from growing economic opportunities and is pushing states who once dominated to adapt to the competition.