California's private-sector job growth has been stagnant, with a decline of over 46,000 workers since January 2023. According to the Hoover Institution, government jobs account for nearly all job growth in the state, making it difficult for the economy to thrive. The state's high cost of living, deficient public services, and poor business climate have led many businesses and residents to leave California. This trend is expected to continue until state leaders make policy changes that create a more favorable environment.

Source: https://www.hoover.org/research/californias-businesses-stop-hiring