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GDP Growth
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California’s Real GDP grew by 2.8% in the second quarter of 2024, below the 3.0% US average and ranked 27th among the states.
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The Information sector, including high-tech and media, remains a significant contributor but its impact has declined over the past three quarters.
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Manufacturing and Health Care sectors also played key roles in the recent GDP growth.
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Seven industries experienced contraction, with Accommodation & Food Services being the hardest hit.
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Texas has outpaced California in cumulative growth since 2022, with a 12.9% increase compared to California's 3.8%.
Personal Income
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California's Personal Income grew by 6.5%, exceeding the national average of 5.3% and placing California fourth among all states.
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A significant part of the income growth came from Medi-Cal transfer payments, which saw substantial increases due to program expansion.
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The other two components of Personal Income--net earnings and dividends, interest, and rent-- grew 5.0% in the 2nd Quarter, close to the national average.
Employment Trends
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Future job growth potential is slowing as employers reduce hiring plans.
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The number of unfilled job openings in California decreased by 1.7%, reflecting levels seen during the height of the pandemic in 2020.
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California’s unemployment-to-job-opening ratio is 1.6, one of the worst in the nation, compared to the US ratio of 0.9.
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Companies, including Astellas Gene Therapies and Canoo, continue to move operations or headquarters out of California to states like Texas and North Carolina.
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These relocations reflect a broader trend of businesses seeking more cost-effective locations.
Unemployment Insurance (UI) Debt
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California's Unemployment Insurance Fund debt surpassed $20 billion, making it one of the last two states, alongside New York, still carrying pandemic-era debt.
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California’s UI program accounts for 19.9% of all state unemployment payments despite representing only 11.4% of the national workforce, reflecting the state's generous benefits system.
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