As California deals with housing affordability issues and the threat of a potential recession, its tech giants are struggling with layoffs and slowing growth. Many big tech companies, like Meta, Apple, and Google, have stopped hiring new people and even let thousands of their workers go, a trend that started in early 2023. These layoffs are a stark change from the fast growth and high salaries seen in the past ten years.
Even though the economy is facing some problems, online gambling is growing fast and getting more creative. California’s tech companies, like fintech giant Intuit, are leading the way in making online gambling better. They use their know-how in finance, security, and app building to develop platforms that give quick and easy payouts, making way for instant payout casino sites. Such innovative fintech solutions let players get their winnings within minutes, which makes the experience much better.
Despite the innovation in faster payout systems created by tech companies, California faces additional challenges. California faces a slowdown, fueled by the high cost of living, particularly in the Bay Area. High housing costs and running expenses make it tough for companies to hire and keep the best workers. Investors are less confident because of global economic and political issues and are investing less.
This slowdown is hitting Californians hard. With rising costs and shaky investor confidence, many people are feeling the financial pinch, as shown by the surge in bankruptcies and foreclosures.
Bankruptcy filings in California are at their highest level in four years, showing that residents are struggling financially. The Conference Board’s consumer confidence index shows Californians are less confident about the economy because they’re worried about the future.
More than 8,000 cases under Chapter 7 were filed in California for bankruptcy. Despite this increase, the current rate remains below levels before 2020. Across the country, more individuals are having trouble paying their debts and filing for bankruptcy.
More people in California are also losing their homes. About 12 out of every 1,000 people lost their homes, a 50% increase over the past year, though still below the levels before 2020. National foreclosure rates followed a similar trend, with a 14% rise from the past year.
Californians are also a little bit more behind on their bills. About 1.24% of debts are now 90 days or more overdue. This is higher than last year, but it’s still lower than it was before 2020. Across the country, 1.83% of bills are overdue, a number a little higher than last year.
While California’s consumer debt remains high at $33,000 per person, the gap with the national average is shrinking, and debt levels in the state declined by 0.7% in the second quarter. These signs show people are having a harder time with money, but they’re not as bad as they’ve been in the past.
