Home>Articles>Assemblyman Kiley Challenges Gov. Newsom’s Grandiose Jobs Report

Assemblyman Kevin Kiley. (Photo: Kevin Sanders for California Globe)

Assemblyman Kiley Challenges Gov. Newsom’s Grandiose Jobs Report

Is California’ roaring back’ or just allowing businesses shuttered for 15 months to slowly reopen?

By Katy Grimes, May 25, 2021 1:52 pm

California Gov. Gavin Newsom commented on the April jobs report, provided by the California Employment Development Department (EDD), which showed that California added 101,800 jobs in April, following 132,400 jobs created in March and 156,100 jobs created in February.

With California businesses (and schools) still in partial lockdown, it’s a stretch to believe that “California added 101,800 jobs in April.” Or “over the past three months, California has created 390,300 jobs,” as Newsom claims. Or that “we’re creating 40 percent of the nation’s jobs,” unless Common Core math is being used. Additionally, the labor force participation rate declined in California which means those are Americans who have given up finding a job, and are no longer participating in the workforce. But the state usually excludes this from its’ unemployment calculations.

“Only Gavin Newsom would gloat we are ‘leading the nation’s economic recovery’ just as we get listed as a state ‘bouncing back least’ thanks to the second highest unemployment,” Assemblyman Kevin Kiley responded.

“California is continuing to lead the nation’s economic recovery, adding 101,800 jobs in April – 38 percent of all the jobs created throughout the entire country,” Gov. Newsom said. “Over the past three months, California has created 390,300 jobs. But we’re not letting up, the California Comeback Plan is the biggest economic recovery package in the state’s history and will provide historic investments in small businesses and workers to bring California roaring back.”

Assemblyman Kevin Kiley (R-Rocklin) responded to Governor Gavin Newsom’s claim that California is leading the nation’s economic recovery.

“Does Governor Newsom really look around and think we’re creating 40 percent of the nation’s jobs?” Assemblyman Kiley asked. “California’s economy continues to struggle as much as any state in the country. Yet rather than face this reality and correct course, the Governor is presenting us with a Potemkin village.”

“The facts outlined in the April jobs report paint a dismal economic picture for California,” Kiley said. “The state’s 8.3 percent unemployment rate is unchanged from March and the second highest in the nation, well above the national rate of 6.3 percent; Florida’s rate is 4.8 percent. The overall number of unemployed Californians went down a mere 3,200. In addition, the labor force participation rate declined in California while increasing nationally.”

Sure enough, the governor admitted that California’s unemployment rate remained at 8.3 percent in April.

“Despite these sobering facts, Governor Newsom is citing the jobs report as evidence ‘California is continuing to lead the nation’s economic recovery,’ claiming that California created nearly 40 percent of the nation’s new jobs in April,” Kiley said. “In fact, the ‘unadjusted’ figure is 14 percent.”

“California’s poor economic performance in 2021 is a result of conscious planning by the Governor. His January budget proposal forecast 8.5 percent unemployment for the year and predicted jobs would not return the ‘pre-pandemic’ levels until 2025.”

Assemblyman Kiley continued challenging Gov. Newsom’s claims of job growth and economic recovery, and offered his own set of course corrections for a California economic recovery.

“As the Legislature debates the budget in the coming weeks, I’ll continue to advocate for a fundamental course correction that sets high expectations for a swift recovery and unleashes California’s full economic potential.” This includes:

    • Taking a science-based approach to school openings rather than being 50th in the country, so parents can return to work.
    • Taking a science-based approach to business openings rather than being 50th in the country, so businesses can resume operations without fear of further shutdowns.
    • Taking a science-based approach to masking rather than ignoring the CDC’s guidance.
    • Structuring unemployment assistance to incentivize a return to work.
    • Forgiving all COVID-related fines, penalties, and license revocations.
    • Providing liability protection for businesses, while reforming PAGA and other litigation traps.
    • Offering meaningful tax relief such as Net Operating Loss carrybacks.
    • Removing arbitrary barriers to work such as Assembly Bill 5.
    • Addressing the “surplus” with durable tax reform rather than arbitrary one-time payments.

An astute CPA on Twitter responded to Newsom’s jobs claim: “‘California’ didn’t create any jobs. These are mostly just people who are FINALLY allowed to go back to work as businesses struggle to get back on their feet after California shut them down for over a year.”

To “create” something is to make something that is new. When a person simply comes back to their old job, which has been suspended for over a year, that’s not “creation.” That’s “resumption.”

 

 

 

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2 thoughts on “Assemblyman Kiley Challenges Gov. Newsom’s Grandiose Jobs Report

  1. More lies and hogwash from Gov Gav. But I love the way Kevin Kiley cuts through it. If only the course correction he lays out could be our “new normal.”

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