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US State economic profile
California - Economic Profile
Statistics, economic information and rankings for the Golden State
In 2026, the state of California has a population of 39,651,788, having grown an annualized 0.3% over the five years to 2026, which ranks it 40th out of all 50 US states by growth rate. California's gross state product (GSP) in 2026 reached $3.4tn, with growth of 1.7% over the 5 years to 2026. Businesses in California employed a total of 22,889,115 people in 2026, with average annual employment growth over the past five years of 1.6%. The top three sectors by total employment are Information, Real Estate & Rental & Leasing, Professional, Scientific & Technical Services, while the unemployment rate across the state in 2026 was 6.0%.
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State economic profile
California Economic Overview
$3.4tn
Gross state product
39,651,788
Population
5,213,511
Businesses
What is California's Gross Domestic Product (GDP)?
In 2026, California's GDP reached $3.4tn, representing an increase of 1.7% from 2025. California's GDP has grown at an annualized rate of 2.0% over the five years to 2026. Moreover, California's trailing five-year GDP growth ranks it 32nd out of all 50 US states.
State GDP, or Gross State Product, is a measurement of a state's output, or the sum of value added from all industries in the state. It is a common indicator used to track the health of a state's economy.
You can track trends in California's GDP, and compare them to the national average, using the chart below.
State economic profile
California Industry Trends
Learn about current trends affecting the most significant industries for California's state economy, down to the county level. IBISWorld offers state industry research reports on over 30,000 industries across all 50 states in the US, including 642 industries in California.
What are California's Largest Industries by Revenue?
The largest industries by revenue in California are Search Engines, Electronic Part & Equipment Wholesaling and Drug, Cosmetic & Toiletry Wholesaling, which generated $210.0b, $202.9b and $196.7b in 2026.
| Industry | 2026 revenue | |
|---|---|---|
| 1. | Search Engines | $210.0b |
| 2. | Electronic Part & Equipment Wholesaling | $202.9b |
| 3. | Drug, Cosmetic & Toiletry Wholesaling | $196.7b |
| 4. | Hospitals | $196.0b |
| 5. | Automobile Wholesaling | $192.7b |
| 6. | Health & Medical Insurance | $178.5b |
| 7. | Software Publishing | $163.0b |
| 8. | New Car Dealers | $146.0b |
| 9. | Public Schools | $145.3b |
| 10. | Commercial Banking | $143.0b |
State economic profile
Top Companies in California
Learn about current trends affecting the top companies in California. IBISWorld offers benchmarking data and tools on over 5,000 companies in the US.
Top 10 Companies Headquartered in California by Employment
The largest companies by employment in California are University of California, Amazon.Com and Home Depot, inc., which employed 227,000, 170,000 and 53,790 people in 2026.
| Company | 2026 employment | Share of employment | |
|---|---|---|---|
| 1. | University of California | 227,000 | 1.0% |
| 2. | Amazon.Com | 170,000 | 0.7% |
| 3. | Home Depot, inc. | 53,790 | 0.2% |
| 4. | Kroger | 47,221 | 0.2% |
| 5. | Naval Base San Diego | 35,000 | 0.2% |
| 6. | Walt Disney Co | 35,000 | 0.2% |
| 7. | United States Postal Service | 28,170 | 0.1% |
| 8. | Los Angeles County Sheriff's Department | 18,000 | 0.1% |
| 9. | California Department of Transportation | 15,000 | 0.1% |
| 10. | Alphabet | 10,000 | 0.0% |
State economic profile
California Sector Statistics
In California, certain sectors drive a higher share of state GDP and employ more workers than others. However, simply looking at raw numbers doesn't always tell the whole story. Factoring in the current year growth percentage, in addition to the annualized growth percentage over the past five years, will give you a deeper understanding of the economic situation.
What is California's GDP by Sector?
The Information, Real Estate & Rental & Leasing and Professional, Scientific & Technical Services sectors contributed the most to California's GDP in 2026, representing a combined 45.5% of state GDP.
GDP trends by sector are an important indicator of which sectors are contributing the most value-add to the state economy, in addition to how the state economy is evolving over time.
| Sector | GDP | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Information | 587,108,365,949 | 9.0% | 8.6% |
| Real Estate & Rental & Leasing | 469,788,940,627 | 2.1% | 2.2% |
| Professional, Scientific & Technical Services | 407,064,423,115 | 4.0% | 3.5% |
| Manufacturing | 360,696,873,863 | 0.8% | 0.0% |
| Healthcare & Social Assistance | 252,845,504,073 | 4.4% | 4.4% |
| Retail Trade | 198,740,276,617 | 4.5% | 4.3% |
| Wholesale Trade | 133,962,467,314 | -2.8% | -3.1% |
| Finance & Insurance | 128,744,480,999 | -2.1% | -4.0% |
| Administration, Business Support and Waste Management Services | 108,518,184,692 | 2.0% | 2.2% |
| Transportation & Warehousing | 103,461,755,331 | 2.3% | 1.5% |
| Accommodation & Food Services | 91,909,147,979 | 2.4% | 1.7% |
| Construction | 88,283,348,672 | -4.5% | -5.2% |
| Management of Companies and Enterprises | 61,181,200,464 | 1.7% | 1.2% |
| Arts, Entertainment & Recreation | 57,563,400,023 | 8.1% | 10.1% |
| Other Services (except Public Administration) | 49,028,158,412 | -1.4% | -0.6% |
| Utilities | 41,835,951,812 | 1.2% | 1.4% |
| Educational Services | 35,906,261,497 | 2.4% | 3.3% |
| Agriculture, Forestry, Fishing & Hunting | 34,868,246,189 | -0.2% | -0.8% |
| Mining | 8,926,423,451 | 3.7% | 1.3% |
What is California's Employment by Sector?
The Healthcare & Social Assistance, Retail Trade and Professional, Scientific & Technical Services sectors contributed the most to employment in California in 2026, representing a combined 31.9% of state employment.
Employment trends by sector are an important indicator of which sectors are growing or contracting most rapidly relative to the state economy as a whole.
| Sector | Employment | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Healthcare & Social Assistance | 2,679,324 | 2.3% | 3.0% |
| Retail Trade | 2,466,265 | 1.5% | 2.5% |
| Professional, Scientific & Technical Services | 2,154,679 | 2.3% | 2.9% |
| Administration, Business Support and Waste Management Services | 1,888,751 | 1.6% | 1.7% |
| Accommodation & Food Services | 1,851,662 | 1.1% | 4.5% |
| Transportation & Warehousing | 1,722,909 | 5.1% | 5.5% |
| Educational Services | 1,535,406 | 0.5% | 1.8% |
| Information | 1,447,399 | 4.0% | 6.1% |
| Construction | 1,297,572 | 2.1% | 2.2% |
| Manufacturing | 1,275,101 | 1.0% | 1.9% |
| Arts, Entertainment & Recreation | 940,780 | 2.0% | 4.0% |
| Finance & Insurance | 934,900 | 1.1% | 1.7% |
| Wholesale Trade | 860,473 | 0.9% | 1.4% |
| Real Estate & Rental & Leasing | 841,012 | 1.5% | 1.9% |
| Other Services (except Public Administration) | 811,093 | 1.2% | 3.2% |
| Utilities | 100,894 | 2.2% | 1.4% |
| Agriculture, Forestry, Fishing & Hunting | 61,206 | 1.5% | -0.9% |
| Mining | 19,689 | -1.3% | 1.4% |
State economic profile
California Employment Trends
22.9m
Employment
6.0%
Unemployment
What Employment Trends are Impacting California?
The state of California employs 22,889,115 people in 2026, which ranks it 1st out of all 50 US states. Employment in California has grown at an annualized rate of 3.0% over the five years to 2026, overperforming the national average of 1.7%. Major sectors by employment in California include Healthcare & Social Assistance, Retail Trade and Professional, Scientific & Technical Services, which employed 2,679,324, 2,466,265 and 2,154,679 people in 2026, respectively. California's unemployment rate is 6.0% in 2026, which ranks it 49th out of all 50 US states. California's unemployment rate has trended downwards at a rate of -3.1% over the five years to 2026, overperforming the US economy as a whole.
Employment trends indicate the degree of tightness or slack in labor markets, in addition to the overall strength of an economy. Faster employment growth typically indicates a strong and growing economy, while lower unemployment tends to imply tightness in labor markets.
You can track unemployment trends in California, and compare them to the US economy, using the chart below.
$217.9k
Per capita disposable income
What is California's Per Capita Disposable Income?
Per capita disposable income, also known as disposable personal income (DPI), is the amount of money that the average person in an economy has available for spending and saving after accounting for income taxes. California's DPI in 2026 was $217.9k, compared to the US average of $156.5k, which places it 26th out of all 50 US states.
Disposable income is regarded as a key economic indicator as trends in disposable income are indicative of the level of aggregate demand, the state of labor markets and the financial strength of households.
You can track trends in California's per capita disposable income, and compare it to the US average, using the chart below.
State economic profile
California Construction & Building Trends
$30,919.4tn
Nonresidential construction
$26.0tn
Residential construction
92,242
Building permits
What can construction trends tell you about a state’s economy?
In California, non-residential construction was $30,919.4tn in 2026, which ranks it 13th out of all 50 US states. Residential construction was $26.0tn in 2026, which places California 13th out of all 50 US states. The number of building permits issued in California in 2026 was 92,242, representing a -5.1% annualized growth rate between 2021 and 2026.
Trends in the construction sector are important because it creates jobs, income and tax revenue for a state. In addition, construction sector activity impacts other sectors in its supply chain, including manufacturing, wholesaling, warehousing, transportation, and real estate, rental and leasing services. Therefore, construction trends are important indicators of the health of an economy.
You can track trends in the number of building permits issued in California, and compare it to trends in the number issued in the United States as a whole, using the chart below.
State economic profile
California Population Statistics
Which Counties in California have the Largest Populations?
The counties with the highest populations in California are Los Angeles County, San Diego County and Orange County, which had populations of 9,432,888, 3,252,956 and 3,097,009 people in 2026.
| Region | 2026 population | Annual growth 2021-26 | Share of population |
|---|---|---|---|
| Los Angeles | 9.4m | -0.8% | 23.8% |
| San Diego | 3.3m | -0.2% | 8.2% |
| Orange | 3.1m | -0.4% | 7.8% |
| Riverside | 2.6m | 0.8% | 6.4% |
| San Bernardino | 2.2m | 0.1% | 5.6% |
| Santa Clara | 1.9m | -0.5% | 4.7% |
| Alameda | 1.6m | -0.7% | 4.0% |
| Sacramento | 1.6m | N/A | 4.0% |
| Contra Costa | 1.1m | -0.2% | 2.9% |
| Fresno | 1.0m | 0.2% | 2.6% |
| Kern | 915.8k | 0.1% | 2.3% |
| San Joaquin | 821.5k | 0.8% | 2.1% |
| Ventura | 817.8k | -0.5% | 2.1% |
| San Francisco | 785.6k | -1.0% | 2.0% |
| San Mateo | 705.6k | -1.0% | 1.8% |
| Stanislaus | 550.9k | N/A | 1.4% |
| Tulare | 484.6k | 0.4% | 1.2% |
| Sonoma | 476.8k | -0.3% | 1.2% |
| Solano | 447.8k | -0.1% | 1.1% |
| Placer | 440.6k | 1.3% | 1.1% |
| Santa Barbara | 438.2k | -0.2% | 1.1% |
| Monterey | 423.7k | -0.5% | 1.1% |
| Merced | 300.9k | 1.0% | 0.8% |
| San Luis Obispo | 281.9k | N/A | 0.7% |
| Santa Cruz | 256.3k | -0.7% | 0.7% |
State economic profile
California Demographics
In California, 39.2% of the population has a Bachelors or higher. The largest ethnic group in California is Hispanic, accounting for 41.3% of the state's population.
Education level in California
| Education level | Share (%) |
|---|---|
| Bachelors or higher | 39.2 |
| Other | 60.8 |
Race in California
| Race | Share (%) |
|---|---|
| Hispanic | 41.3 |
| White | 32.5 |
| Asian | 16.9 |
| Black | 5.4 |
| Other | 3.9 |
California State industry reports
IBISWorld State Industry Reports help you quickly understand how an industry performs at the state level compared with the national level, with accurate and unbiased industry information with a local focus. Use this collection to:
- Discover key local industry trends
- Identify threats and opportunities at the subnational level
- Inform your business strategies and planning
See our list of 642 California industry reports.
Other states to explore
Compare California’s economy with other states in the United States.
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