California, home to a wealth of talent in major industries such as film and technology, has lost thousands of workers to states with a lower cost of living and other benefits, according to a recent report.
The National Assn. of Realtors, which analyzed US census data from the third quarter of 2023, found nearly 87,000 workers moved from California to other states to find new jobs, while the Golden State gained only 69,000 new workers. The group published its results last month.
Some of the most popular places to change jobs in California: Texas, Arizona, Washington and Nevada.
Although the job market in California remains strong, the high cost of living and the lack of affordable housing, especially in cities like Los Angeles and San Francisco, contribute to why people accept jobs elsewhere, said Nadia Evangelou, senior economist for Realtors. organization.
“The lack of affordable housing is not just affecting home buyers. It also has an impact on the government retaining talent,” he said. “This trend is worrying because it shows the economic hardship that high housing costs are causing to professionals, even those who earn well.”
The findings highlight some of the challenges California faces as it tries to retain workers. Known for its sunny climate and beautiful beaches, mountains and deserts, California has also experienced major upheavals in the past year, including strikes in Hollywood and mass layoffs in the tech and media industries. That could also leave workers wondering if they should find new opportunities elsewhere in states like Texas that don’t have an income tax.
California lost more workers than any other state that was part of the study with a total loss of 18,485 job changers.
On the other hand, the Southeast and Southwest provinces gained more workers, the analysis found. Virginia — which has a large number of government contracting, technology and defense jobs — saw a net gain of 7,191 immigrants, more than the other states analyzed. Texas, Tennessee, South Carolina and Georgia made up the top five.
The analysis of the group of real estate traders has some limitations. Census data excludes Alaska, Michigan, Mississippi and North Carolina. This study also focuses on people who leave their jobs to find new ones, not those who are laid off.
Larger states have more people moving in and out, so the trade group also looked at another metric to measure how attractive a state is to people changing jobs. Calculating “the percentage of people moving to a state relative to all job movers in that state,” the group found that South Carolina, Maine, Montana and Tennessee were the most attractive states for people changing jobs.
Stabilizing mortgage rates and more housing supply could help slow California’s exodus, but the state is competing for talent, Evangelou said.
“This, unfortunately, will continue because it depends on the need and how much property we have,” he said.
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