UNITED STATES — On Friday, May 21, the U.S. Bureau of Labor Statistics (BLS) reported that California ranks the second-highest for unemployment in the U.S. and Hawaii being the first.

According to the state of California Employment Development Department (EDD), in the week ending May 15, a reported 71,000 Californians applied for unemployment.

Multiple news reports indicate that in addition to the surge of new claims, there is a $1.1 million backlog in claims at the Unemployment Department.

EDD reports April unemployment rates at 8.3 percent. BLS reports are the same with Hawaii at 8.5 percent.


California Governor, Gavin Newsom, touts that the state of California leads the country in job creation for the third month in a row.


Newsom tweeted that, 101,800 jobs were created in California during the month of April. “That is nearly 40 percent of all jobs created in the nation,” Newsom tweeted.

May of 2020, California unemployment was at 16.3 percent with 2.3 million year-over job loss.

California’s recent tax hike reportedly caused many job-creating millionaires to move out into neighboring states that have better tax rates.

Elon Musk, the creator of Paypal, Tesla Motors, SpaceX, and the developer of Hyperloop, is one that chose to make the move from California to Texas.

News reports indicate that 135,000 more people moved out of California than those who moved in from out of state from July 2019 to July 2020.

The recent tax is said to be a tax on millionaires. The tax affects only the top .015 percent of the population, or about 30,000 people generating $7.5 billion for the state of California.


The recent tax hike was not the only cause of the mass exodus of the state. California and New York had many leave the state for work during COVID restrictions which resulted in businesses closing and job losses for many.