More than 1,100 businesses relocated from California to other states in 2023, while 1,000 firms migrated to Florida, the U.S. Bureau of Labor Statistics (BLS) reported. Overall, California had a net loss of 533 migrating businesses last year, by far the most of any state. The state lost 1,134 firms and gained 601.
In contrast, 497 firms left Florida against the 1,000 that moved in, for a net gain of 503.
Along with California, New York (278) and Illinois (218) also had net losses of more than 101 businesses. States with net outbound migration of 51 to 100 firms were Maryland, Massachusetts and Colorado.
Along with Florida, Tennessee (158), South Carolina (149) and Texas (125) had net inbound migration of more than 101 businesses. North Carolina gained 51.
Since 2015, California has recorded 2,389 net business departures:
- 2015: -104
- 2016: -70
- 2017: -57
- 2018: -65
- 2019: -209
- 2020: -165
- 2021: -445
- 2022: -741
- 2023: -533
Since 1994, the first year for which BLS provided data, California has recorded a net loss of 3,128 business that moved out of state. During the same time, New York has shown a net outbound migration of 5,890 businesses.
“Wherever people are located, they demand the goods and services that fulfill their wants and needs,” BLS said. “Thus, as people migrate, so too does economic activity. While the prospect of new opportunity can attract people and businesses to cross state lines, other factors can lead them to move as well. Proximity to family and friends, better weather or simply a desire to live somewhere new are all explanations for why people—and their businesses—might choose to live and work in a new state. Similarly, taxes and regulatory barriers and other business environments may lead businesses to explore opportunities in states with more favorable conditions and fewer constraints.”
BLS provided the numbers of businesses that moved into and out of California and Florida in 2023. A request to BLS for the same information for the other 48 states was denied “due to strict rules on respondent confidentiality.”
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