Why are two of the most populous states, New York and California, doing so badly?
JH: In many respects, New York and California have a lot in common. They are large states with diverse workforces and large immigrant communities. Both states have strong traditions of protecting labor rights and have well-organized workforces. Most people would assume that they should score better than they do. However, finding a full-time job is harder in New York and California than in many other states. Average job quality in the two states, particularly when adjusted for the cost of living, isn’t spectacular. This is true for California, even with a minimum wage set well above the federal level. Although employees on Wall Street and in Silicon Valley frequently take home enormous paychecks, inequalities among working people are pronounced. Both states have large populations of low-wage workers. In New York’s case, its important to keep in mind that New York City suffered a major economic shock with the September 11th terrorist attacks. Unemployment increased significantly at that
