Business

U.S. hiring keeps booming. Why is California lagging behind?

Published

2 years ago

March 8, 2024

U.S. hiring keeps booming. Why is California lagging behind?

WASHINGTON —

U.S. employers continued hiring new workers at a brisk pace last month, providing fresh evidence that the overall economy remains sturdy, but the new data showed that California is still looking like an underachiever.

California’s job growth has been trailing the national curve all year, and even though it made up some ground in January, the Golden State still lags behind when it comes to adding new jobs.

The state’s unemployment rate also continued a months-long run of exceeding the national average by more than a full percentage point. California’s most recent unemployment rate, for January, was 5.2%.

The national jobless rate went up slightly in February and now stands at 3.9%, marking 25 straight months in which the unemployment figure has remained below 4%.

Across the country, Friday’s report by the Labor Department said, employers added an unexpectedly strong 275,000 jobs last month, many in healthcare along with government and leisure and hospitality.

Still, the pace of hiring nationally has been moderating from even stronger levels last year, and wage gains slowed in February. With a cooling of inflation in recent months, the Federal Reserve is expected to begin reducing interest rates soon, easing financial conditions for businesses and consumers, especially new home buyers.

For California, Fed interest rate cuts can’t come fast enough.

California’s employment report for February will come out in two weeks. The January data released Friday offered a hopeful beginning to the new year: The Employment Development Department said employers statewide added 58,100 nonfarm jobs, a full one-fourth of the nation’s gains for that month.

However, that has not been the general pattern. Even with the burst of hiring in January, only 7.7% of the nearly 3 million nationwide jobs created over the prior 12 months have been in California, which accounts for about 11.5% of the country’s labor force.

Meanwhile, California’s share of the unemployed in the U.S. was 16.6%. And in recent weeks, about one-fifth of all jobless claims filed nationally have come from workers in California.

Why the lagging performance? Economists and business analysts point to a number of factors: Some are cyclical, such as the major role agriculture plays in the state economy. Harsh weather and rising costs have hurt almond and other crop growers, spilling into other parts of the economy, especially in the Central Valley.

Other causes are more systemic, such as the tech industry’s belt-tightening after a few years of what is now seen as profligate hiring. That and some other factors may be long-term trends.

Even more than the nation as a whole, California’s job growth over the last year has been highly concentrated, leaving the state’s workforce more vulnerable. The bulk of the hiring has been in healthcare and social services, followed by government and the hospitality industry.

Missing in action have been key high-paying drivers of the state economy. The entertainment industry, centered in Los Angeles, lost 38,000 jobs in motion picture and sound recording sectors from January 2023 to January 2024.

“The Writers Guild of America and SAG-AFTRA strikes had a profound effect on employment,” the EDD said in its release. Los Angeles County’s unemployment rate rose to 5.4% in January, up from a revised 5.2% in December.

Overall, the state’s information and business and professional services sector, which includes high-paying computer programmers and engineers, was down more than 105,000 jobs in January compared with a year earlier.

Statewide, the EDD said, transportation and trade-related jobs dropped about 10,000 from a year earlier. Similar declines were seen in financial services and manufacturing.

Michael Bernick, an employment attorney with Duane Morris in San Francisco and former director of the Employment Development Department, said part of the state’s underperformance can be traced to the pandemic and the response to it.

“The economic lockdowns in California counties were more severe than in other states, and many small businesses never recovered,” he said.

At the same time, Bernick said, employers in a range of sectors have been unable to fill entry-level jobs, so that the state has experienced worker shortages even with growing overall unemployment. That, along with rising labor costs, appear to be hampering hiring at restaurants and retail establishments.

Another big long-term problem, Bernick and other analysts said, is that California has become an increasingly hard place to do business, with employment rules that make hiring difficult and risky. Add to that the state’s higher costs, which have prompted many businesses and people to move out of California.

“The reason why Texas and Florida are doing well and California isn’t, it’s the cost of housing and high taxes,” said Sung Won Sohn, an economist at Loyola Marymount University in Los Angeles. “We have lost a lot of small businesses.”

He noted, however, that there’s still considerable entrepreneurial dynamism in the state, and that ethnic businesses, which dominate the small-business landscape in the Southland, are very resilient.

Analysts expect hiring nationally to moderate in the coming months. The near-term hiring outlook may be a little more mixed for the state.

Although the number of job openings in California has been dropping, there’s still strong demand for entry-level jobs at restaurants and retail stores and in health services. Whether more people will fill those jobs is another question. Labor participation in California has been lower than in the nation, with many older workers and Latina women remaining on the sidelines of the job market.

Tech layoffs have persisted this year, but there are signs that those cuts may be bottoming out, said Andrew Challenger of the outplacement services firm Challenger, Gray & Christmas.

In January, jobless rates in California varied widely, with a high of 19.3% for Colusa County in the northern Sacramento Valley to a low of 3.7% for San Mateo in the San Francisco Bay Area.

For Southern California, Orange County had the lowest rate at 4.2%. January‘s unemployment rate was 5.5% in Riverside County and 5.4% in San Bernardino County.

Business

FDA escalates recall of Utz brand potato chips before July Fourth holiday

Published

8 hours ago

July 6, 2026

Press Room

The recall of a popular chip brand over salmonella concerns was recently upgraded to the U.S. Food and Drug Administration’s highest level, just ahead of the Fourth of July holiday and countless backyard barbecues.

On June 24, the FDA designated the recall of several varieties of Zapp’s and Dirty brand potato chips as Class I, meaning it’s “a situation in which there is a reasonable probability that the use of or exposure to a violative product will cause serious adverse health consequences or death.”

FDA has classified the following items as Class I:

Zapp’s

1.5-ounce Zapp’s Bayou Blackened Ranch Kettle Chips
2.5- and 8-ounce Zapp’s Bayou Blackened Ranch Potato Chips
1.5- and 8-ounce Zapp’s Big Cheezy Potato Chips

Dirty

1.5- and 2-ounce Dirty Brand Salt and Vinegar Potato Chips
2-ounce Dirty Maui Onion Chips
2-ounce Dirty Sour Cream and Onion Potato Chips

The chips are produced by Utz Quality Foods, LLC, which on April 28 issued a recall after learning “that a seasoning containing dry milk powder, sourced from California Dairies, Inc. and supplied by a third-party supplier, may contain the presence of Salmonella.”

Salmonella can lead to sometimes deadly infections in elderly people, young children and those with weakened immune systems, according to the FDA.

More than 680,000 bags are included in the recall.

Anyone who has these products should not eat them and should discard them immediately.

What to look for

Salmonella is a foodborne illness that can be fatal to young children, pregnant women, older adults and people with weakened immune systems, according to the National Institutes of Health.

Symptoms may develop 12 to 72 hours after infection, according to the FDA.

The FDA said that people with strong immune systems infected with salmonella may experience fever, diarrhea (which may be bloody), nausea, vomiting and abdominal pain. The illness can last four to seven days.

In rare cases, the infection may produce more severe illnesses such as arterial infections, endocarditis and arthritis, the agency added.

What to do if infected

If you contract salmonella, the Centers for Disease Control and Prevention recommends drinking plenty of fluids to prevent dehydration.

The CDC advises consulting a doctor before taking antidiarrheal medicine or antibiotics. If severe symptoms continue after two days, seek medical help, the agency says.

Because those with diarrhea can spread salmonella to others, it’s also recommended to avoid sharing food or preparing meals for others, sexual contact and swimming in public pools, and to stay home while sick.

Times staff writer Jasmine Mendez contributed to this report.

Business

‘Minions & Monsters’ tops the box office, but with a lower-than-expected haul

Published

19 hours ago

July 5, 2026

Press Room

‘Minions & Monsters’ tops the box office, but with a lower-than-expected haul

The Minions took over theaters this weekend as Universal Pictures and Illumination’s “Minions & Monsters” won the top spot at the box office, though with a lower-than-expected domestic haul.

The animated movie, which follows the Minions’ takeover of Hollywood, took in $61.4 million in the U.S. and Canada for the five-day Fourth of July holiday weekend, according to studio estimates. That haul was lower than analysts’ expectations for a domestic opening of about $68 million. The movie’s three-day total was $36.4 million.

But the Minions performed well internationally, bringing in about $85 million. In total, “Minions & Monsters” made $159.9 million worldwide on a production budget of about $85 million.

The film is the latest in the powerhouse franchise that began with “Despicable Me” in 2010. Across its previous six installments, the “Despicable Me” and “Minions” franchise has made more than $5.6 billion at the global box office. The last movie, 2022’s “Minions: The Rise of Gru,” made more than $940 million worldwide.

“Minions & Monsters” marks the lowest opening for the franchise. Part of the issue could be timing — the box office can be negatively affected when the Fourth of July lands on a Saturday, said Paul Dergarabedian, head of marketplace trends at Rentrak.

Walt Disney Co. and Pixar’s “Toy Story 5” came in second at the box office this weekend with a domestic three-day gross of $31 million. Angel Studios’ biopic “Young Washington” ($20.8 million), Warner Bros. and DC Studios’ “Supergirl” ($9.6 million) and Universal’s “Disclosure Day” ($6 million) rounded out the top five, according to Rentrak.

The haul for “Minions & Monsters,” coupled with the strong holdover performance of “Toy Story 5,” proved again that family films are making a dent in the summer box office.

“Toy Story 5” has now brought in a total of $764.3 million worldwide, and last month, Universal, Illumination and Nintendo’s “The Super Mario Galaxy Movie” crossed $1 billion at the global box office, becoming the first film of any kind to do so this year.

The rest of the summer theatrical lineup is also expected to bring in audiences and push domestic box office totals closer to pre-pandemic figures. Next week, Disney will release its live-action “Moana,” followed by Christopher Nolan’s “The Odyssey” and Sony Pictures’ “Spider-Man: Brand New Day.”

To date, the summer box office is now about $2.3 billion, a nearly 12% increase compared with the same period a year ago, according to Rentrak data. Compared with pre-pandemic 2019’s numbers, however, it is still down about 7%.

Business

China-backed AI tool behind fake Brad Pitt fight making Hollywood inroads

Published

1 day ago

July 5, 2026

Press Room

China-backed AI tool behind fake Brad Pitt fight making Hollywood inroads

Earlier this year, a widely circulated 15-second AI-generated video of Brad Pitt fighting Tom Cruise on a rooftop sparked outrage across Hollywood. One screenwriter called the cinematic clip “terrifying.” The Motion Picture Assn. demanded the company behind the artificial intelligence tool — Chinese tech giant ByteDance — halt its “infringing activity.”

Despite the uproar, the former majority owner of TikTok has quietly continued to court filmmakers, independent artists and executives who are eager to adopt the AI video generation model called Seedance.

Seedance was launched in the U.S. this spring at a Santa Monica event hosted by a group linked to the Chinese government.

ByteDance began hiring for 100 open roles, signed multiple independent filmmakers and artists and held private conversations about financing AI films. The company threw a lavish caviar party at Cannes and in May hosted panels promoting its cinematic tool at Amazon’s AI on the Lot event in Culver City.

“Like any new technology, Hollywood ultimately has no choice but to react to market realities. And that reality is that the new crop of AI-empowered Hollywood creatives see Seedance as having the most powerful video generator in the market right now,” said Peter Csathy of Creative Media, an entertainment and AI business advisory firm.

Joel Kuwahara, the animation producer on early seasons of “The Simpsons,” echoed Hollywood’s quiet embrace.

“Within the industry, I know that a lot of studios haven’t approved Seedance, but yet with a wink and a nod, they’re allowing Seedance to be used. … It’s kind of like a ‘don’t ask, don’t tell’ kind of a thing,’” Kuwahara told The Times.

ByteDance declined to comment on its U.S. expansion.

The race to build the dominant AI video model has created a fierce rivalry, pitting U.S. companies against the fast-closing Chinese competitors. On the American side, there are Google Veo and startups such as Runway and Luma. OpenAI’s Sora has discontinued its video tool.

The Chinese challengers Seedance, Kling and Alibaba’s HappyHorse have rapidly closed the gap on cinematic realism and have upstaged their American rivals by undercutting them on cost.

According to Artificial Analysis, a company that tracks cost and performances of different AI models, China’s Seedance is currently the most cost-effective and high-quality option compared with U.S. competitors. Seedance costs $9 per minute for video with audio generation, significantly lower than the $24 per minute required by Google’s Veo model.

That makes it an attractive tool for independent filmmakers like Rupert Wainwright, who recently met with Seedance executives at AI on the Lot.

He wants to use the the tool to help make his feature-length film called “Sebastian,” about a Christian saint set in 3rd century Rome. The hybrid AI film will be shot partly on location in Europe and partly generated with artificial intelligence.

“It’s the equivalent to when streaming a movie over the internet onto your TV finally became possible,” Wainwright said.

Kavan Cardoza.

(Kayla Bartkowski/Los Angeles Times)

In May, Steven Schneider, the producer of “Paranormal Activity,” famous for its handheld grainy footage-style filmmaking, announced “Terrarium,” his first hybrid AI horror production. The film’s director, Jason Zada, said it will be entirely generated using Seedance’s model.

Zada’s filmmaking workflow involves writing, casting, prompting and editing all simultaneously, allowing him to rewrite scripts based on “dailies” generated by AI that day.

He estimates that generating 15 seconds of high-definition video costs only $5.

“We could go from a very detailed outline, very detailed characters and have it be a bit more fluid, because we could regen[erate] as much as we want,” Zada said.

Zada plans to shoot the movie first on a soundstage with real actors and will decide later which parts work better traditionally and what should be done synthetically. He’s a member of the Directors Guild of America and said he will be employing union actors for his hybrid AI film.

Seedance also has continued building ties by offering indie creators, AI-native studios and filmmakers free monthly credits and access to unreleased features. These “tastemakers” beta test its models, offer feedback on what works, and use it for their personal filmmaking projects — which creates corporate brand awareness.

Kavan Cardoza is one such breakout filmmaker. His AI fantasy series, “The Chronicle of Bones,” which uses Seedance, features half a dozen distinct storylines and an ensemble of characters. New episodes, each not more than 30 minutes, are released on YouTube once a month. The solo filmmaker averages 3 million views per episode and has cultivated a YouTube audience of 500,000.

Most filmmakers are tool agnostic, but lately Cardoza has become completely dependent on Seedance, he said, because it solves a persistent problem: maintaining character consistency between shots.

To create one of his characters, “the last lost boy,” Cardoza took self-portraits wearing a three-faced mask and a tattered brown jacket. He used those reference images for the AI character and transforms them into a stylized person, with a personality, backstory and visual details. He fed those images back to Seedance to get consistent characters — repeating the process for each member of the cast.

“I can’t go get Brad Pitt because he costs like $5, 10, 20 million to be in my film,” Cardoza said. “I can probably get a synthetic actor that will act just as good as Brad Pitt in the future. That’s crazy to me.”

Cardoza has copyrighted his script and characters, and aims to eventually attract major studio interest to turn his intellectual property into a film which comes with a built-in fan base.

Such plans are likely to face resistance from the performers union SAG-AFTRA, which has decried the use of synthetic actors such as Tilly Norwood.

“The rise of Seedance comes down to [its] focus on pleasing filmmakers and making things that look filmic,” said Stephan Vladimir Bugaj, senior vice president of JioStar, a joint venture between Disney and India’s Reliance Industries.

ByteDance introduced timeline-based prompting so filmmakers can actually pick specific moments and tweak them, and improved the understanding of camera direction, physics, lighting and fluidity of action. All of this, Bugaj said, “unlocked a kind of spectacle filmmaking that the other models are not delivering quite as well.”

The company’s tool has been in such high demand, Zada said, that Seedance has been quoting some major Hollywood studios $2 million for unrestricted special access.

While acknowledging Seedance’s popularity and its U.S. expansion, Amit Jain, chief executive of Luma, said its ceiling in Hollywood is severely limited. Traditional studios might adopt Chinese models for some preproduction tasks such as concepting, but the geopolitical and intellectual property risks for commercial generations are too prohibitive.

“Can you imagine Disney using the ByteDance model for the next ‘Snow White’? No way,” Jain said. “This is not even a technical argument, really. That’s the reality.”

Luma has been making inroads into Hollywood selling its software but has separately funded a production service company to teach filmmakers to make hybrid AI films using its tools.

Despite conservative production budgets, AI spending by media companies is projected to grow from $2.6 billion to $12.5 billion from 2024 to 2029, according to a State of Generative AI Media report.