California Economic Woes Continue to Grow

From employment to health care, negative trends batter the Golden State.

California used to be one of the most desirable destinations in the US. Whether to live or visit, people flocked to the Golden State. It offered jobs, beautiful landscapes and national parks, and quiet, safe places to raise a family. But things have changed over the years.

California Jobs Dry Up

Federal data shows that in the fourth quarter of 2024, there was “no job creation” and California lost approximately 80,300 jobs.

“Since mid-2022 … five out of six quarterly early benchmark revisions have shown weaker employment trends than first reported by the monthly survey,” wrote the state-funded Legislative Analyst’s Office (LAO). “For context, the monthly survey has overestimated net job growth by 25,000 jobs per month on average over this period.”

To make matters worse, one-third of the state’s prime working-age residents are immigrants, many of whom are here illegally, according to Public Policy Institute of California. The “undocumented” segment “represents roughly a tenth of the state’s workers,” said Giovanni Peri, an economics professor at UC Davis who studies the economic impact of immigrants. California has the most illegal migrants in the nation and with the current aggressive deportation initiative, they are set to lose a chunk of their working population.

Health Care Takes a Hit

There’s more bad news, though, for Californians – especially illegal immigrants. Governor Gavin Newsom signed a controversial budget on June 27 that seems in direct contrast to the state’s overeagerness to protect and provide for migrants. The $321 billion budget closed a $12 billion deficit by dialing back on progressive issues such as health care for undocumented immigrants. The state’s health care system as a whole has a projected annual deficit of between $17-24 billion in coming years, with potentially $16 billion loss from federal revenue. To help combat those changes, California will stop new enrollments for illegal migrant adults into the state’s Medicare program, Medi-Cal. Also, starting July 2027, undocumented persons currently in the program under 60 will start paying a $30 premium each month.

Migrants are not the only ones on the chopping block, though, when it comes to health care. The mental health phone line that served about 100,000 people a year will see a $78 million cut, and low-income residents will lose dental services starting next year.

This is the third year in a row that California lawmakers have reduced funding for Democrat-pushed programs, yet Governor Newsom and Company blame President Donald Trump and the Republicans. In a press release, the governor said:

“As we confront Donald Trump’s economic sabotage, this budget agreement proves California won’t just hold the line — we’ll go even further. It’s balanced, it maintains substantial reserves, and it’s focused on supporting Californians — slashing red tape and catapulting housing and infrastructure development, preserving essential healthcare services, funds universal pre-K, and cuts taxes for veterans.”

Speaker of the California State Assembly Robert Rivas remarked: “Trump is undermining our economy with reckless tariffs, harsh cuts, and ICE agents terrorizing our communities. At a moment when so many are already struggling, he’s adding fear and instability. In contrast, Democrats have delivered a budget that protects California.”

Tell that to the people who won’t be able to call the mental health hotline, or the low-income citizens who will have to gum their food without dental assistance.

California residents are also gearing up for rattlesnake and fire season. There are more than 7,500 wildfires each year, according to the California Department of Forestry and Fire Protection. According to their website, the agency responds to over 550,000 emergencies annually. Some authorities are predicting 2025 to be a bad year for fires, and Governor Newsom complains that the Trump administration is endangering citizens by using the National Guard for immigration enforcement.

“Trump’s actions in Los Angeles are harming public safety. Whether it’s fentanyl takedown operations or wildfire response, the California National Guard plays a critical role in protecting our communities, and Trump is deliberately undermining that work,” he said, according to Eyewitness News. However, part of the Guard’s duties include supporting federal assignments to protect citizens and the nation, which many argue includes working the Los Angeles riots and the protests that continued beyond.

There was a time when California was seen as the place to go to make dreams come true. But thanks largely to years of progressive politics, it has become a land of misery for many – and the woes seem to be growing.