Let's hope these California economic dips don't return in 2026

"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. As a sort of California year-in-review, let's ponder 11 economic twists that don't need to return in 2026."

"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. Not an alarming level, but it's the wrong direction. 3. Slowing opportunities: Look at who's starting California operations with employees. There were 173,000 new-business applications of this type in the past year vs. a 188,000-a-year pace in the previous five years. That's an 8% drop in one measurement of business dreams."

California added workers at a 79,400-per-year pace in the past year, down sharply from a 254,000 annual expansion in 2019–2024, a 69% decline in hiring momentum. The statewide unemployment rate averaged 5.4% over the past year, up from 4.8% over the prior five years. New-business applications for operations with employees fell to 173,000 from a 188,000 annual pace, an 8% drop. Wage gains in Southern California and the Bay Area averaged 4.2% versus 4.4% previously. Modest employment growth and return-to-office trends increased congestion, with Texas A&M estimating 103 hours lost in traffic in 2024. National indicators and recent federal policy moves have not produced stronger performance.

Read at The Mercury News