Tech Downturn Hits West Coast Economy

The West Coast is experiencing a tech downturn that is impacting various sectors of the economy, leading to layoffs and reduced business activity. California, Oregon, and Washington have seen higher unemployment rates, falling wages, strained state budgets, and slower job growth since the middle of the previous year. The downturn is not limited to the technology industry but also affects construction, housing, finance, manufacturing, and retail. The economic downturn is putting pressure on state budgets. California, which previously had a significant surplus, is now facing a budget deficit of $32 billion due to lower earnings among the wealthy, who contribute a significant portion of the state's income tax revenue. Oregon is also grappling with the economic challenges caused by tech company troubles, including Intel's canceled expansion plans, layoffs, and pay cuts.