How tech industry’s tumble cooled California’s economy

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The stall of one industry – creator of cutting-edge products and sky-high salaries – is roughly California’s entire GDP slowdown.

It’s not a stretch to say that much of California’s economic slowdown can be tied to technology’s tumble.

Let’s look at what’s dubbed “information” – the creator of cutting-edge products and sky-high salaries. This economic slice is dominated by technology firms and also covers groups like Hollywood’s creative talent. Output from California “durable goods” factories – long-lasting stuff from aerospace parts to appliances – grew at an $11 billion-a-year pace in the five-year boom. This year, it’s declining at a $5 billion annual rate over the past two quarters.The “professional, scientific, and technical” work – high-paying, white-collar jobs – increased at a $21 billion annual pace in the boom, one-fifth of the total. But growth decelerated to $8 billion a year in this recent cooling.

 

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