Sacramento, CA (MSN) – Updated federal data reveals that California’s job growth in 2024 was significantly lower than initially reported, with the state adding just 60,000 jobs instead of the previously estimated 250,000, marking a 76% downward revision.

A 2024 state-funded report found that private-sector employment in California began declining in 2022, with job growth primarily driven by the public sector and related fields. If this pattern continued, the state’s 0.3% job growth rate may have been entirely fueled by taxpayer-funded government hiring.

According to the Legislative Analyst’s Office (LAO), September 2023 to September 2024 job gains were much lower than initially estimated. Early reports suggested steady labor market growth, but corrected data shows actual job growth was just 0.3%, compared to the previously reported 1.5%.

The LAO also reported major shifts in employment between September 2022 and April 2024:

• Private sector jobs declined by 154,000
• Public and publicly-funded sector jobs increased by 361,000, including healthcare positions primarily financed by Medicare, Medicaid, and Affordable Care Act subsidies

As economic uncertainty looms, the governor has proposed withdrawing $7 billion from reserves while raising state spending to $322 billion. Given stock market volatility and uncertain federal funding, potential budget cuts may be necessary to address the state’s financial challenges.