The very poor growth of withholding taxes see Daily Treasury Statement) so far in October, seems to be confirming this trend:
fms.treas.gov
California Sheds 23,700 Jobs in September
latimes.com.
California's economy lost a net 23,700 jobs in September, the Labor Department said today, a surprising decline that suggested the state's economy might have hit a soft patch.
It was the state's first net job loss since December 2004. And it came as the state has been enjoying relatively stable employment growth this year, averaging more than 23,000 new jobs a month after being sluggish for much of the first three years after the 2001 recession.
California's September job swoon was surpassed only by Louisiana and Mississippi, both devastated by Hurricane Katrina.
A good chunk of the California decline was due to seasonal factors, economists said. Many school districts started their years in August instead of September, which shifted employment growth from September to August, said Howard Roth, chief economist for the state Department of Finance. August employment was revised upward by a hefty 22,600 jobs as a result, he said.
But even after factoring in that shift, the state's job growth in September was still relatively sluggish compared to recent months, Roth said. "It's a fairly weak report." He suggested that higher gasoline prices might have taken a toll on hiring, but it would take several months of poor job reports before anyone could conclude that the state's economy was slowing significantly. |
