Entrepreneurs incorporating in California last month seemed to have hired in slightly larger numbers, as the state's unemployment dipped moderately to 11.9 percent with the addition of a meager 8,900 jobs, according to figures from the Labor Department.
The figures highlight the Golden State's continued economic woes, despite boasting high startup activity. To add to the state's problems, many experts point to Texas' increasingly business-friendly climate as acting as a sort of gravitational pull for firms in California seeking brighter pastures.
Especially considering April's nationwide employment gains - 244,000 new jobs, to be precise - California's stalled growth spells challenges in keeping up with a growing workforce. According to the Los Angeles Times, the state needs to add 12,500 jobs per months merely to keep up with new entrants to the labor pool.
While regulatory burdens may be inhibiting businesses from hiring, it is important that owners finance their operations in a frugal manner. While lower taxes and compliance burdens may be a ways off, firms should organize their capital such that new hiring practices can be tapped if needed.
Tags : ca, operations, small business management
Posted: May 20th, 2011