According to the Employment Development Department, job growth in California has been lagging. Factors that may be slowing employment growth include high gasoline prices, ongoing budget troubles, and rising workers' compensation and health benefit costs. Employers? general reluctance to hire and ability to rely on labor-saving technologies and business practices that boost worker productivity also are thought to be inhibiting hiring.
See "Job Growth in California Still Lackluster", Bill Sing, Los Angeles Times, October 18, 2004