A notable uptick in businesses leaving California for better opportunities in other states has emerged as a troubling trend. Between 2012 and 2019, this outflow nearly doubled.
Indeed, California’s golden sheen seems tarnished to many in the business community as they seek more business-friendly climates.
High Costs and Restrictions Propel Business Exodus
The Inland Empire Economic Center, responsible for a study commissioned by the Los Angeles Area Chamber of Commerce, cites a combination of high taxes, hefty rent prices, congestion, environmental conditions, and pandemic-related government restrictions as major factors behind the exodus.
Businesses leaving California are, metaphorically, casting off the Golden State’s heavy chains for freer markets.
Despite falling unemployment rates — California’s rate plummeted to 3.9 percent in September — analysts point to a shrinking labor force as the reason.
The state is akin to a ship in rough waters: certain sectors experience hiring freezes and layoffs, while others face persistent worker shortages.
