"Economically speaking, California was gifted with some winning trend lines in 2025. But there were also numerous lumps of coal within the state's business patterns that are better not seen again. This is not just a Golden State malaise. National economics don't look so hot either. And numerous unorthodox policies in the Trump administration's first year have not paid off, so far."
"1. Sluggish staffing: The economy is basically about job growth. And while California bosses added workers at a 79,400-a-year pace in the past year, that's stingy. Think about the 254,000-a-year expansion in 2019-2024. That's a 69% drop in the number of growth-minded bosses. 2. Growing joblessness: Less hiring meant it was tough to replace a lost job or find a new one. The statewide unemployment rate ran at 5.4% over the past year, up from 4.8% over the previous five years."
California recorded modest economic gains in 2025 alongside several negative trends that need reversal in 2026. Employers added workers at a 79,400-a-year pace in the past year, down from a 254,000-a-year expansion in 2019–2024, a 69% decline. The statewide unemployment rate averaged 5.4% over the past year, up from 4.8% over the previous five years. New-business applications with employees fell to 173,000 from a 188,000-a-year pace, an 8% decline. Wage gains in Southern California and the Bay Area averaged 4.2%, slightly below a 4.4% prior pace. Traffic congestion in six California markets produced 103 hours lost in 2024.
Read at www.ocregister.com
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