California lost a net 11,600 jobs in March as private sector job losses exceeded taxpayer-funded job gains, the plurality of which came from a single welfare program in which Californians are paid minimum wage to care for family members.
The California Center for Jobs and the Economy’s analysis for state and employment for March 2025 found the state lost a net 26,800 private sector jobs, while government and taxpayer-funded employment grew by 15,200 jobs.
Of those health care and social assistance jobs added, 6,831 were from growth in “providers” for the state’s In-Home Supportive Services Program, or 45% of the growth in taxpayer-funded jobs. This means IHSS “provider” growth was greater the 4,800 jobs added through other direct government employment.
IHSS now “employs” 742,300 Californians as “providers,” 98.3% of whom are related to the individual receiving care. “Providers” are employed for an average of 31 hours per week, which at minimum wage translates to taxpayer-funded wages of $505 per week, or $26,300 per year.
“These are predominantly minimum wage, part-time In-Home Supportive Services (IHSS) jobs provided as a Medi-Cal benefit and that have few if any training and upward mobility opportunities,” wrote CCJE.
As reported earlier by The Center Square, California has lost nearly 200,000 private-sector jobs since January 2023, only offset by substantial growth in taxpayer-funded employment.
The relatively low value of these new “jobs” amid sustained declines in private sector employment are starting to be reflected in April’s income tax withholdings falling below government projections.
