California’s job growth has continued to slow this month, according to an analysis released jointly by Beacon Economics and the UCR School of Business Center for Economic Forecasting and Development. Although the latest numbers from the California EDD indicate that the state added 17,600 jobs in May, recouping the revised decline of 17,600 positions in April, year-over-year gains (+1.5% this month), remain near multi-year lows and slightly below growth at the national level (+1.6%).
The driving force behind the slowdown in the state is twofold. First, the state’s employers are finding it increasingly difficult to find candidates to fill skilled positions, and second, because of high housing costs, employers are finding it increasingly difficult to fill lower-paying jobs.
“For the second month in a row California’s yearly growth rate dipped below the nation’s,” said Robert Kleinhenz, Executive Director of Research at Beacon Economics and the Center for Forecasting. “While job growth nationally has also slowed, our concern is that California’s job growth will be constrained because we are at full employment, we have insufficient numbers of qualified workers for certain positions, and rising housing costs are increasingly challenging for lower and middle income households.”