I think it's a bad term, but I would guess that he means "anywhere in the world where that kind of labor is mobile" ...? Sketchy. The general point he's trying to make is that government workers in California (and maybe elsewhere?) tend to get the kinds of perks and pay raises normally only given to much higher wager earners in the private sector.
You know: you can get 6 weeks of vacation and a nice pension even if you're making $40k; in the private sector, if you make $40k you'll be lucky to get some of your health care paid for. In the private sector, you can take wednesday afternoons off (without a dock of your pay) to play golf if you make $200k; in California, you can take every other Friday off (without a dock) if you work 9 hours/day in the preceeding 9 days ... even if you are a clerk. That kind of thing.
/jordan