Viewing blog posts written by Jack Stewart
California's budget and dangerous economic watersPosted by Jack Stewart, on Feb. 4, 2009
I sometimes feel like Roy Scheider in "Jaws" after seeing the shark for the first time. Remember that?
Roy Scheider: "I think we’re going to need a bigger boat."
As astonishing as the aforementioned numbers might seem, they are only part of the story. EDD provides data that allows CMTA to track total employment and wages by 19 specific industry sectors. For example, the average wage in the manufacturing sector is $64,220 per year while the average wage in the health care & social assistance sector is $48,256. The manufacturing sector has seen an inordinate decline of 473,500 lost jobs while the health care & social assistance sector has seen the largest increase in jobs, with government running a close second.
Overall, the declining job sectors have seen a loss of 730,000 jobs with an average annual wage of $69,000, while the job growth sectors account for 948,000 new jobs with an annual wage of only $45,500. Who could possibly be happy with these results or argue that these numbers are good for California’s workers?
Not included in this data are the recent layoff announcements we've read about in the media, such as Boeing, NEC, Home Depot, OptiSolar, etc. Here's a sampling of layoffs -- not "furloughs" -- that were scheduled in the private sector for January and February, according to California's EDD WARN statistics:
As Governor Schwarzenegger and the legislative leadership continue their negotiations to close California’s gaping $42 billion budget hole with a combination of tax increases and spending reductions, it might be a good time to consider a strong dose of economic stimulus targeted at private sector job creation with a nod toward the high wage sectors.
Last week, the California Manufacturers & Technology Association, along with 17 other business associations, released a package of stimulus proposals that will begin the arduous task of growing private sector jobs. We want to build a bigger economic boat to address the dangers that have been circling California's economy and working families for eight years.
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