"Several reports, as touted by some top California leaders such as Gov. Gavin Newsom, have established that the state is among the world's biggest economies as measured by gross domestic product. Tech leaders such as Nvidia are spearheading an artificial intelligence boom that has caused market cap values to rocket higher. Hiring trends, however, paint a starkly different picture of the state's economic health: California has one of the nation's weakest job markets."
"Measuring the annual pace of job growth among the states, California ranked 37th in 2025. In 2024, it was 32nd. "It is no surprise that even with California's many economic advantages, the state ranks low in adding payroll jobs," said Michael Bernick, an employment attorney with law firm Duane Morris and a former director of the state Employment Development Department. "Over the past few decades, California has built an edifice of hiring costs and regulations that discourage employers.""
California ranks among the world's largest economies by GDP while experiencing weak payroll job growth. Major technology firms and an AI boom have driven market capitalization gains, yet hiring lags and tech firms continue to shed positions. Annual state job growth placed California 37th in 2025 and 32nd in 2024. High hiring costs and regulatory burdens create disincentives for employers. Statewide job growth remains below the national average. The combination of significant corporate valuation gains and sluggish employment expansion produces an underperforming state job market.
Read at The Mercury News
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