AI is booming on the West Coast. So why is unemployment so high there? | CNN Business

Despite AI skills and more than a decade of management experience in technology, Juan Ruiz has struggled to switch jobs in a state known for its tech scene: California. Ruiz has been looking for a new job with more pay since October 2024, sending out hundreds of applications, he told CNN. So far, it’s been crickets. “Nobody’s calling back,” Ruiz said. America’s tech companies are benefiting from the largest investment surge in history, according to the Bank of International Settlements — many of them headquartered on the West Coast. Yet unemployment in the region is among the highest in the country: In June, California, Oregon and Washington were tied for the second-highest jobless rate, at 5.2%, according to the Bureau of Labor Statistics, behind Washington, DC’s 6%. Tech hiring has slowed sharply over the past few years, especially on the West Coast. The sluggish job market has shut out new entrants and left people like Ruiz feeling stuck. While companies are spending on AI, in many cases they’re also conducting layoffs instead of expanding headcount, affecting employment broadly. And it’s not just tech companies, according to economists. “AI technology is get