ICYMI: The nation’s economic engine, California, continues to lead in job creation and raising wages
Through July 2026, California accounted for one in six new jobs in the nation
What you need to know: California is adding jobs more than three times as fast as the nation, delivering strong productivity gains, and raising wages for workers — demonstrating the continued strength and resilience of the Golden State economy.
SACRAMENTO — Governor Gavin Newsom today highlighted California’s continued economic strength, as the Golden State drives job growth while boosting productivity and delivering higher wages for workers.
California isn’t just keeping pace — we’re driving the national economy. We’re the fourth-largest economy in the world, delivering nation-leading job gains and more than our share of America’s new jobs. From clean energy and manufacturing to health care and logistics, we’re investing in people and the industries of the future, and putting more money in the pockets of working Californians. While the critics root for California to fail, we’re focused on what matters: creating opportunity, growing our economy, and building the future.
Governor Gavin Newsom
From the first quarter of 2025 to the first quarter of 2026,California employers added approximately 131,534 jobs — more than any other state during the same period. The Golden State has contributed 16.5 percent of the nation’s overall job growth since the beginning of the year.
That job growth is being matched by outsized economic performance: California is the single largest contributor to national productivity growth and accounts for roughly 14% of total U.S. economic output, despite representing just 12% of the nation’s population.
Wages rose as well, with average weekly wages rose 4.6% over the year to $1,954 in the fourth quarter of 2025 — outpacing the 4.2% national increase.
And as California creates jobs and increases productivity, the state is also working to ensure workers share in that growth. While the federal government hasn’t raised the minimum wage in nearly two decades, under California law, which adjusts the minimum wage annually to keep pace with inflation, the statewide minimum wage will increase to $17.40 per hour on January 1, 2027 — nearly two-and-a-half times the federal minimum wage.
World-leading economy
Since Governor Newsom took office, California’s annual GDP has grown by more than $1.18 trillion, reaching $4.25 trillion in 2025. First-quarter 2026 economic output reached an annualized $4.4 trillion, following annual GDP gains exceeding $200 billion in each of the previous two years.
California also remains home to more businesses than Texas or Florida, and continues to be America’s startup capital — with more than 4.3 million small businesses employing 7.6 million Californians.
In the first quarter of 2026, California’s economy grew at a 3.7% annualized pace — its best quarterly growth ranking since 2013 and one of the fastest growth rates in the nation and well above U.S. growth of 2.1%. Meanwhile, Texas grew 0.9% and Florida 1.6% during the same period.
As the world’s fourth largest economy, California continues to lead the nation where it matters most — creating new businesses, attracting venture capital, driving technological innovation, expanding advanced manufacturing, growing high-tech industries, and producing more than any other state. In fact, The Golden State continues to be: #1 state for new business starts, #1 state for manufacturing, #1 state for high-tech business, #1 state for agriculture, #1 state for venture capital.