California is losing thousands of workers. Here’s where they’re moving

U.S. Net Migration Trends. October 2024 (National Association of Realtors)

California, by a wide margin, saw a net loss of more workers than any other state in 2023, according to a new report from the National Association of Realtors.

The Golden State saw nearly 87,000 professionals leave for opportunities elsewhere while 69,000 moved to California, the association found, based on data from the U.S. Census Bureau.

“High housing costs—particularly in areas like San Francisco and Los Angeles—coupled with a high cost of living, have driven many workers to relocate to more affordable states like Texas and Arizona,” the report stated.

The association said California’s high state income tax was also a significant factor – driving workers to states with more affordable tax policies. Those top destinations were Texas (14%), Arizona (9%), Washington (8%) and Nevada (7%).

Other cities that saw a net loss of workers in 2023 include Illinois, Louisiana, Massachusetts, New Jersey and New York.

Areas that gained the most job switchers were largely in the southern United States, such as Virginia, Texas, Tennessee, South Carolina, Georgia and Florida.

The association points out that the nation’s most populous states naturally see more migration, so comparisons can be difficult.

“Larger states naturally have more people moving in and out, so their migration numbers are often much higher simply due to the sheer volume of residents,” the report states. “This makes it difficult to fairly compare them to smaller states, which may have fewer people overall but could be more attractive on a per-capita basis.”

The most recent Census data show California’s population grew to approximately 39 million people in 2023 after three straight years of declines.

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