California has come second in the nation when it comes to job cuts so far this year according to a new report.
Andrew Challenger with the executive coaching firm, Challenger, Gray and Christmas, says the Golden State has reported around 37,000 job cuts through the first six months of the year.
"The number one job cut came from the automotive sector, which is not what you'd typically expect in California, but Tesla announced that they were cutting more than 3,500 jobs, the leading cut that happened in California this month," said Challenger.
Nearly 11,000 jobs were cut in June alone according to the data. The retail sector, health care-products sector and services sector all reported the most job cuts. Companies cited restructuring, store closures, and cost-cutting measures as the three biggest reasons why jobs have been cut over the last six months in California.
"We continue to see the most cuts coming from the retail sector, where brick-and-mortar is slowly being phased out in favor of e-commerce. We've tracked almost 3,000 store closures this year," Challenger said.
On Friday, the Labor Department announced that the U.S. economy added another 213,000 jobs in June, with unemployment rising slightly to 4 percent. The good news for the economy comes even as storm clouds gather over a possible trade war with China.
Challenger said the economy is moving at a great pace, even as employers slow their hiring in a tight labor market.
"It's a tight labor market, the economy is moving at a fairly good pace. Employers are just not really letting too many people go, and not hiring too many people right now. We've kinda seen a slowdown in the number of new hires, as well as the companies that are announcing major layoffs."
Photo: Getty Images