California Employment by Income (2016)

Despite having the third highest rate of low-wage job creation in the nation, California could face a shortage of low-wage workers as housing costs push residents out in search of affordability. 

According to a trio of new studies, low- and middle-wage workers are leaving California even as large numbers of higher-wage earners continue to arrive. And all together, more people are moving out than moving in.

The report finds that many new jobs in California are in low-wage industries, and the post-recession period favored low-wage job growth over middle-wage and high-wage job growth throughout the state by a wide margin. However, when compared with the rest of the nation, the trend of low-wage job creation is not unique to California. Other large population states, such as Texas and Florida, also rank among the top ten in low-wage job growth during the post recession period. California has also been leading the nation in both middle-wage and high-wage job creation in the post-recession recovery, as California is home to numerous high-wage industries that are leading the country in high-wage job creation. Additionally, compensation in high-wage and middle-wage industries in California is growing faster than in the nation overall.

Given California's role as a leader in both tourism and technology, the state should expect to continue creating a mix of high-, middle- and low-wage jobs as businesses invest, construction picks up, consumers increase spending, and tourists continue to travel.

More information on California's employment by income compared to other states available at Compare50.org, and the other two reports are under the Additional Resources tab.

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