This blog is for discussing issues in our complex global economy.
I can further understand how the home cost downturns greatly affected California with this article. Any market that may seem too good to be true as did the housing market back about 7 years ago, must draw a sign of danger. My parents were too victims of the economic downturn. By losing both their homes and my father being unemployed in construction, it seems that this article is the story of my life. Something must be done to resolve this, as i know my family were not the only affected in this exact same way.
It is insane to think that just California is loosing their jobs so fast. I really do not understand it fully because I reside in Seattle Washington and my family has not affected, but I have seen it drastically throughout the community. It has been interesting to me to see older people working the low paying “college” student type jobs. Knowing that this is happening in our economic world it makes me grateful that I am in school right now furthering my education in hopes that the economy will turn around in the next 3 years.
It not a surprise to hear that California residents income has fallen at a faster pace since job losses happened at the same pace too. So many families have lost their jobs and homes that the effects on per capita personal incomes will be an immediate indicator of this.
California has always had higher living costs and therefore demanded higher wages. With the over extensive housing boom, it’s not surprising that much of the job losses were in the construction area. This in turn affected administrative positions and any financial positions within the construction areas. It’s like a bowling ball knocking down pins one after the other. People think that leaving California will help, but it just impacts other states with joblessness.
I think that one of the reasons why California is one of the states with the most job losses is due to the construction job field. The construction field has made a huge toll by having lost thousands of jobs in California. What impacts me the most is that the average income of people who live in California dropped 3.5 percent. This of course, somehow was imminent since California has suffered from job loss.
Wow, California just has the worst everything! Worst education, terrible income, 4th highest unemployment, and not much is being done about it. It’s amazing that a fourth of the jobs lost in the last few years have been in the construction business alone. I wonder how that compares to the number of education positions that were cut. With our state being so large, and with the cuts that we’ve had, I could very easily see education being another quarter of the jobs lost over the last few years. It’s too bad there isn’t any sort of assistance we could gain from other states right now that would help. We need those construction jobs back. That would do us a great deal of good: get Californians jobs and make us not look so bad anymore!
This article explaining the fall of personal income and the pace of job losses in California is sad to read. Being a born and raised in California I have always seen my self living here but now it is hard to be so sure. I know feel like I need to have an opened mind about where I will live after college depending on job offers. Hopefully by the time I graduate it will have improved. Showing signs of an upward slow for the californian economy. What also strikes me is the size of California. Being a big enough state that it could become its own country, makes it even more difficult to think if all the people in California that are being directly affected by this. Thats a lot of Californians and their families struggling in such an ideal state to live in.
Job loss is a serious problem in California. Unemployment rate is still one of the top 5 highest of all states and job creation is not enough carried out for everyone to have a job. If californians lose their jobs at a faster pace, incomes decrease at the same pace. the fact is not really surprising but the problem is very serious and some improvenments need to be done to produce more jobs and more people can get jobs.
Like most have stated, it’s not a shocking think to read about given the circumstances of the financial crisis today. Given that the drop is 3.5%, from a median income from one person ($50k) I personally don’t see a 1500$ drop to be a massive plunge. Given taxes, higher gas, paying more into your health care ect… I think in the end it will balance out.
“Not only do we have the worst education system in the U.S., we now have lower income”…can it get any worse? Let’s hope the answer to that is no!! I agree that the facts are not surprising and that the housing boom in combination with the economic crisis had detrimental effects on those who work in construction fields. My brother worked in the field, but was forced to look for work in another field due to the lack of work and so many other workers competing for the jobs that were available. One can only hope that we have seen the worse of it and there are only good things to come.
This does not surprise me. “Not only do we have the worst education system in the U.S., we now have lower income.” The longer a person stays in school the greater amount of money that person is able to make. Education and income goes hand and hand. The only way that I see improving things, is to fix California’s Education System.
It is terrible to read that the personal income’s of Californians are decreasing. With the upsets of job losses, unemployment, loss of housing, the chain of events have not fallen where they were suppose to in the past recent years. California though has always had a higher living costs especially in the Bay Area and down in LA. So residents have always known that more money is pulled from their personal incomes than other states, but on the other hand there were better variable and factors that balanced our incomes and payments. I just hope soon that there will be a way to bring that balance so California can see more people reentering the work force and stimulate our economy.
This is not surprising at all because it seems that every where I look people are constantly losing their jobs. My family has been personally affected by this issue and it seems that wherever people try and get jobs it just isn’t cutting it for what people really need to support their families. I also find it very interesting because related to jobs, is definitely education. It has always been told that the longer you go to school and the higher education the better job and salary you will receive. Will such a decrease in education as well, this is becoming a lot harder for those who are receiving higher education and not going to make it in this ruthless job world.
How ridiculous is it to realize that the job market is so insecure at the moment. People should not have to be so fearful at work and if they make a mistake, there is a high possibility that they can get laid off. Along with having a very low quality education system, this is the next most important aspect in our state that is not being addressed properly. If this continues, by the time the class of 2012 graduates, the opportunity to apply for jobs will have decreased at an even higher rate than it is at the moment.
There were many things in California that hit a tail spin when the economy got rocky. The housing prices were out of this world and banks were having people signing too good to be true loans that really were too good. Companies were taking hits and therefore didn’t have the money to pay all their employees leading to layoffs and many of them. All states were going through similar problems but it is really no surprise that California is among the worst. The construction jobs dwindled because no one could afford to buy a house let alone pay their mortgage. Housing prices have started to stop falling but the economy won’t be fixed for a long time and that means that the housing won’t bounce back either. We need things in the housing market to get better but not inflate like it did. We have to take considerable effort to patch the wounds and plan for success.
It is really sad that so many people were pretty much swindled into these zero percent or low interest rates way back when, not really understanding that the rates would go up after a certain amount of time. To think that these mortgage companies could do this to people just blows my mind. They made it sound so good at the time. But just like the first commenter pointed out, if it sounds too good to be true, it most likely is. My husband works construction and so we have definitely felt the pinch of this economy. But hopefully things are slowly turning around.
It’s bound to happen that California has most of the worst of everything. We have the most people so therefore we will have the most unemployed and the worst schools. But, as articles before have stated, we are heading in a positive direction so hopefully these numbers decrease.
California is so large that the fact that we are the ones with the lowest personal income and are losing jobs faster than most other states is really scary! California is one of the more expensive states to live in, so that is probably making it harder to maintain a stable personal income. this whole thing we are going through is really hard. People can’t even find full time jobs and are scrambling which is making the ones (like me) who just want a summer job for college and apartment expenses and resume experience not able to find anything. there is barely anything available out there and it’s no fun
When we look at the rate of job loss and the income loss it isn’t surprising to me that they are falling at a rate that is very similar. But the true problem to me is the fact that California has always had a higher cost of living compared to many states, and with the rates falling it is scary to look towards the future.
It’s shocking to read how much faster california lost their jobs an income than the rest of America. As well as that we are tired for the fourth worse unemployment rate. I wonder why california was the one who fell the most and the fastest out of all of Americans.
Its too bad to hear this. It seems like we are doing bad in everything. We have a high rate of unemployment, and our budget cuts are cutting back on our schools and education. While it may seem bad, things will hopefully start getting better soon.
I think this has to do with somewhat high ratio of tax in california. Because owner of shops and companies would reduce the number of the workers due to their higher tax which will only led their unemployment rate go up.
I agree that there is a higher ratio of taxes in california in comparison with other states. It is not surprising that income and the job market have fallen. Taxes are way too high in California and small business owners can’t keep up. California has always had a high cost of living but now the taxes are making it impossible for people to stay afloat.
This is something that is very interesting to think about. Not only does California provide much of the nation’s income, but the cost of living in this state is already much higher than the rest of the country. This is the only instance where higher taxes seem like a negative thing because of those who do not earn as much money as the other California residents who have high incomes. The personal income seems to be going down, yet the cost of living in California seems to keep going up and it doesn’t make sense.
California has so much money in the state that i feel small changes and drops are cared about much more then if it had happened per say in one f the dakotas. personal income is expected to drop in a tie of crisis one thing about California is its great work force and resources. So i feel like we can always bounce back from small drops in income.
It’s interesting to see such a large fall in income in Caifornia, and not to hear much about other states. I wonder how this is affecting other states and other governments. When personal income decreases, then you obviously have less money to spend and stimulate the economy. Since taxes didn’t fall this decreases people wealth. Which means no more spending.
It doesn’t really surprise me to see that Californians’ incomes are dropping more than the national average. After all, Californians make more than most other people in the country. It was also pretty predictable that construction jobs have decreased as well. There are a few major cities (San Jose for example) that are still growing and have a huge demand for construction. But everywhere else the construction was just a way to spend extra money. Now that we don’t have extra money, there is no more construction. It seems logical to me. 12.5 percent is a horrible number though; I hope it has bounced back a little bit since this article was published.
It is crazy that California is one of the worst economic states in America. But it does make sense that California lost their jobs at a faster pace and that their pay checks shrank at a faster pace. It makes sense because California is such a big market and there are so many jobs that have been lost, so it is understandable that jobs were lost so quickly.
Of course its going fall below the national average. That is expected considering we have such a high population and more jobs than most states. Soon we’ll rise from the ashes like every great power.
How horrifying, the national average income only falls 2.5%, but California is 3.5%. First of all, California is one of the biggest state. We have a huge populations and jobs. Now that we are in a recession, a huge amount of job loss cause the personal income to fall is not surprising.
people with money are leaving becaue the costs of living in california are very high. naturally the people who can afford to leave aer those with big incomes, those big incomes go away and that cause a decrese in the average income.
The further and further this state falls into debt, the more and more we lower our living standards. These drops were inevitable, considering our debt situation. The more wealthy residents of California are leaving now that the cost of living in California is so high, thus causing the personal income percent to drop.
It’s sad to hear but also not surprising that personal income has fallen with all these job losses. When people lose their jobs they end up having to take lesser paying jobs. I know a lot of people who have college degrees and are not working in the fields they could with the experience they have. I am grateful to be in school and trying to earn an education that will help me in the future so I don’t have a lower paying job than I am capable of having.
California is a very complex state. We have our good moments and our bad. With the recession our state is getting hit hard. Our state has a lot to offer and when you have a lot to offer, you also have a lot to lose. When people get laid off or fired they try to get any kind of job, even if it has a significantly less pay check than their first job. This lowers the overall income rates. But once the recession is over, I am sure that California will be back towards the top. Our state needs to really focus on our budget as well. Once there are more jobs being offered rather than cut, you will see California turn around.
I agree with Anthony. Education and income is strongly related. SInce the educational system in California is not doing great, it is hard to expect the income to improve. In order for us to improve this, we must first look at the educational system first.
the fact that our unemployment is one of the highest in all of the americas along with the fact that we have the largest dip in personal income speaks to just how big we are as a state. having the largest economy of any state is bound to make us targets in some way for we are almost like the barrier for the rest of the country. this has been true for any economic statistic, california is always the hardest hit, but we also have the best recovery as well, i am optimistic.
The construction business failure took me by surprise, but the more I thought about it the more it made sense. There are not enough jobs to go around for families to buy new homes. Not enough funding for corporate projects. Construction goes in phases and its seems to be a reoccurring theme to see buildings have a foundation and walls but for some reason the buildings do not get finished. This is because theres never enough money to finnish the projects.
To hear that our personal income is going down in this state is absolutely not surprise. With jobs being so hard to come by and unemployment ranking fourth in the nation, of course our income is going to falter. In the case of the construction, this is no surprise either. With people not making money why put your own money into a project that may not make any profit in a real estate market that is clearly struggling. With personal income falling we should be focusing on how we are spending our money, instead of living in the past.
It is no surprise that the income has dropped. The economy is horrible. I agree with some of the students when saying that the education and income are simialer. People aren’t getting the eduacation they need to get a higher income. We need to improve our eduacation first and once that happens then see if we can fix the unemployment rate and income.
When things are going well it is easy to live in the moment and ignore the future. This is what happened to California 7 years ago and now we are paying the price. Its hard to hear the difficulties of he present. we now live in a recession with no end
Economy will go up and down. THe money that people recieve form thier paycheck goes to consumer products and bills. Because the United States has a consumerism economy when people are not buying and do not have money the economy will not be good. its simple but when things are opn the upside when our economy is doing good there is room for growth and more consumerism.
With the recession this country is going through our state is one of the few that have been hit hard. We are such a prosperous state that once the country hits a recession our state will obviously be hit badly. Since the unemployment rate is so high of course our incomes will drop. Companies don’t have the money to spend on their employees and with employees spending money on necessities, not much money is left over. It’s not surprising that this has happened, but hopefully it won’t happen for much longer.
To me it is shocking to read California is losing their jobs faster than the rest of America. Although, when I think about it we have to most people and the biggest individual economy so when the countries economy takes a hit you know a huge portion of that hit is coming out of California. It is just sad to think that even as hard as we tried we have the fourth worst unemployment rate in the country.
It makes sense to me how the home cost downturns have greatly influenced California. This market seemed almost too good to be true before the recession, and it was only a matter of time before something snapped. It is clear that something must be done to resolve this issue. No one is safe from the recession and it will be better for everyone if this ends sooner rather than later
This is not good. Personal income in one of the main components in improving our economy. If people’s income increases then they spend more which means that more needs to me produced. People buy products and this stimulates our economy. So if our personal income is falling people are really feeling the effects of the recession, and it is not improving as people would like to believe, it actually might me getting worse, with the government giving it a fake face.
In response to “Not only do we have the worst education system in the U.S., we now have lower income”: Well, by the same token, when the economy is booming, California’s income surely increases more rapidly than other states. I see it more as a kind of trade off: one makes more during the good times, and at the same time, has to be more cautious about the fact that he/she might lose more during the bad times. Although the state is partially responsible for ensuring the welfare of its citizen’s, the citizens themselves should be also well-prepared for future economic uncertainties. For example, during the housing bubble or IT boom, do people really believe that it would last forever?
With alot of construction workers laid off, theeconomy of California is not doing as well because of the job loss. That job loss led to the 3.5% decrease in income because there was less human capital that was being produced.
It’s sad to know that the state we live in is doing so bad. So bad that we’re actully doing worst than other, 3.5%?! That’s crazy. There really needs to be something done with this issue. The recession is definitely damaging our economy.
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