- 173,868 more businesses
- 2,352,530 more employees
- 54.3% increase in total wages
- $14,865 in additional annual wages per employee
- 29.3% increase in wages per employee
Since 2009, the number of businesses in California has grown by 13.3% (3.8% greater than the national average of 9.5%). Employment in California has grown by 19.3% (4.8% greater than the national average of 14.4%). Wages have grown by 29.3% since the end of the Great Recession. This wage growth is 6.8% greater than the national average of 22.5%.
The average weekly wage in California of $1,260 is 18.4% above the national average of $1,064. The gap between the national average has widened from 12.3% a widening of 6.1% since the end of the recession.
The Healthcare sector has the most businesses in the state of California . Since the end of the recession, the number of businesses has grown from 89,324 to 580,482, a gain of 549.9%. The table below illustrates the change in number of businesses in each sector:
|Accommodation and food services||81,028||68,310||18.6%|
|Real estate and rental||49,465||42,233||17.1%|
|Finance and insurance||48,560||46,377||4.7%|
|Arts and entertainment||22,467||18,164||23.7%|
|Transport and warehousing||22,259||18,586||19.8%|
|Agriculture and forestry||16,252||17,344||-6.3%|
|Mining and oil extraction||769||748||2.8%|
Please note, it’s possible that some Other services businesses were reclassified under Healthcare as there does appear to be a significant shift between the two sectors. There are three sectors that lost businesses since 2009 with Agriculture and forestry contracting 6.3%, Manufacturing decreasing by 1.1% and Construction staying roughly even but losing 0.1% of its businesses. The two sectors that the most are Educational services which added 3,000 businesses, an increase of 28.3% and Arts and entertainment which added 23.7%. The Professional services sector added nearly 20,000 businesses, an increase of 16.1%
The Healthcare sector employs the most workers in the state of California . The number of jobs has increased 56.6% since the end of the recession from 1,435,436 to 2,248,130. The table below illustrates the change in employment in each sector:
|Accommodation and food services||1,630,870||1,250,579||30.4%|
|Transport and warehousing||551,752||399,259||38.2%|
|Finance and insurance||544,087||539,753||0.8%|
|Agriculture and forestry||421,749||373,603||12.9%|
|Arts and entertainment||305,110||243,203||25.5%|
|Real estate and rental||283,407||254,863||11.2%|
|Mining and oil extraction||19,711||23,865||-17.4%|
As mentioned above, we feel that a change in reporting is largely, but not completely responsible a shift between Other Services and Healthcare, however the two sectors combined added nearly 600,000 employees accounting for 25.5% of the states growth. The Accommodation and food services sector expanded by 30.4% adding over 380,000 workers and the Transport and warehousing sector expanded by 38.2%.
The Finance and insurance sector stayed relatively flat since 2009 expanding 0.8% and Manufacturing added 2.2%. The Utilities and Mining and oil extraction sectors both lost workers, decreasing 2.8% and 17.4% respectively. These are the two smallest employers in the state.
The sector with the highest wages is the Information sector at $3,314. Prior to the recession, the sector’s average weekly wage was $1,786. This is an increase of $1,528 per week or 85.6%. The table below illustrates the change in average weekly wages in each sector:
|Finance and insurance||$2,378||$1,681||41.5%|
|Mining and oil extraction||$2,342||$2,183||7.3%|
|Real estate and rental||$1,300||$912||42.5%|
|Arts and entertainment||$1,112||$933||19.2%|
|Transport and warehousing||$1,047||$862||21.5%|
|Agriculture and forestry||$640||$469||36.5%|
|Accommodation and food services||$459||$358||28.2%|
Workers in many sectors had their pay increase significantly since 2009 with Real Estate and rental expanding by 42.5% and Company management increased by 46.6% led the state. One of the two sectors that lost employees grew the least. Mining and oil extraction increased 7.3% from $2,183 to $2,342 per week.
Each of the sectors in the previous section are made up of a number of detailed industries. The top industry that has experienced the most growth (as a percent) since the recession is Services for the elderly and disabled which has grown 27,091.9%. The top industry that has contracted the most is Private households which has contracted by 94.0% in the years since the recession. The table below illustrates the 10 largest industries and their change in the number of businesses since the recession:
|Services for the elderly and disabled||477,489||1,756||27,091.9%|
|Offices of physicians||31,857||28,969||10.0%|
|Computer systems design and related services||23,971||19,270||24.4%|
|Offices of lawyers||21,318||19,772||7.8%|
|Offices of dentists||21,172||18,888||12.1%|
|Residential building construction||20,064||20,219||-0.8%|
|Management consulting services||18,998||11,951||59.0%|
|Accounting and bookkeeping services||16,998||14,841||14.5%|
|Offices of real estate agents and brokers||15,059||12,406||21.4%|
The industry that has experienced the most growth in number of employees (as a percent) since the recession is Services for the elderly and disabled which has grown 1,150.1%. The industry that has lost the most employees is General medical and surgical hospitals which has contracted by 4.9% in the years since the recession. The table below illustrates the 10 largest industries and their change in the number of employees since the recession:
|Services for the elderly and disabled||561,965||44,954||1,150.1%|
|Temporary help services||375,724||220,961||70.0%|
|General medical and surgical hospitals||371,568||390,658||-4.9%|
|Computer systems design and related services||309,420||194,768||58.9%|
|Supermarkets and other grocery stores||296,047||271,461||9.1%|
|Offices of physicians||240,532||231,814||3.8%|
|Management of companies and enterprises||230,319||197,752||16.5%|
|Support activities for crop production||216,652||166,885||29.8%|
|Hotels and motels, except casino hotels||210,818||186,969||12.8%|
|Other outpatient care centers||175,141||43,029||307.0%|
Since the recession ended, the industry that has experienced the greatest increase in average weekly pay per employee (as a percent) is All other information services which has grown 979.4%. The average weekly wage in the Miscellaneous intermediation industry has grown by 6.9% since the recession. This is the industry with the lowest wage growth among top industries in California . The table below illustrates the 10 largest industries and their change in the average weekly wages since the recession:
|All other information services||$13,849||$1,283||979.4%|
|Internet publishing and web search portals||$6,271||$3,018||107.8%|
|Credit card issuing||$6,160||$3,284||87.6%|
|Independent artists, writers, and performers||$6,058||$4,438||36.5%|
|Investment banking and securities dealing||$5,872||$3,493||68.1%|
|Computer and peripheral equipment mfg.||$5,165||$2,709||90.7%|
|Motion picture and video distribution||$4,536||$2,719||66.8%|
Please note, during the comparison period the NAICS coding has had changes made to it. For proper comparisons we are only including industries that have NOT been affected by these changes.
The biggest percentage change in the number of businesses has been in businesses with 1,000 or more employees. The number of businesses with this number of employees has grown from 531 to 741, which is an increase of 39.5%.
The smallest percentage change in the number of businesses has been in businesses with 5 to 9 employees. The number of businesses with this number of employees has grown from 146,068 to 166,623, which is an increase of 14.1%.
Table: Change in the number of Businesses by Size of Business, since the Recession:
|Company Size||Q1 2018||Q1 2010||% Change|
|Fewer than 5 Employees||1,093,038||911,784||19.9%|
|More Than 1,000 Employees||741||531||39.5%|
The biggest percentage change in the number of employees has been in businesses with 1,000 or more employees. The number of employees in companies this size has grown from 1,075,551 to 1,624,374, which is an increase of 51.0%.
The smallest percentage change in the number of employees has been in businesses with 5 to 9 employees. The number of employees with this number of employees has grown from 954,852 to 1,093,945, which is an increase of 14.6%.
Table: Change in the number of Employees by Size of Business, since the Recession:
|Company Size||Q1 2018||Q1 2010||% Change|
|Fewer than 5 Employees||1,426,221||1,116,145||27.8%|
|More Than 1,000 Employees||1,624,374||1,075,551||51.0%|
The biggest percentage change in the average weekly wage has been in businesses with 1,000 or more employees. The average weekly wage in companies this size has grown from $1,745 to $2,511, which is an increase of 43.9%.
The smallest percentage change in the average weekly wage has been in businesses with fewer than 5 employees. The average weekly wage in companies this size has grown from $718 to $825, which is an increase of 14.9%.
Table: Change Average Weekly Wage by Size Since the Recession:
|Company Size||Q1 2018||Q1 2010||% Change|
|Fewer than 5 Employees||$825||$718||14.9%|
|More Than 1,000 Employees||$2,511||$1,745||43.9%|
This page, created and maintained by Kurt Tietjen, Founder of Stavera, High Peak Media & HomeGearWorks.com. Kurt Tietjen has spent the bulk of his career working with and using data to grow businesses. As the SVP of Operations at TheStreet and the head of Audience & Product at Purch, data helped us create products and content strategies to grow the businesses. My LinkedIn Profile is here.