California: Substantial Financial Sector Employment Losses

The Los Angeles and San Francisco areas are showing big losses in financial services jobs with work being shifted to other regions of the nation. In the 2007-2012 period, the losses in the Los Angeles area were 21 percent, while in the San Francisco area the losses reached 17 percent. Combined, their losses exceeded that of the New York combined statistical area, which had three times as many financial sector jobs in 2007. San Diego also experienced a 5 percent job loss, while Sacramento’s loss was miniscule.

Overall, California lost 17 percent of its financial sector jobs between 2007 and 2012 while such jobs grew elsewhere. The Los Angeles statistical area includes Riverside-San Bernardino and San Francisco’s includes San Jose.

Furthermore, New York, Boston and Chicago also lost such jobs. (I see something noteworthy: All are high-cost cities in business-unfriendly states.) There is also a strong trend of financial sector job gains where housing is more affordable and job losses where housing is less affordable. See NewGeography’s The Dispersion of Financial Sector Jobs, which is the conclusion of an analysis of data supplied by Moody’s Analytics for an article in The Wall Street Journal Meet Them in St. Louis: Bankers Move (accompanied by a map and data table).

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