California

Economy

In the United States, we provide for our material well-being mainly through markets. Private markets provide not only for basic necessities like food, housing, and medicine, but others, from entertainment to transportation, that shape the quality and character of life.

Summary of Results.

The US has the second largest economy in the world. In California progress in economic output and productivity has been improving.

Download Section
View State Dashboard
  • Economic Output
    Specific Measure

    Real gross domestic product (GDP), or the level of production within a state's boundaries, expressed in 2023 US dollars

    (Source: Authors' analysis of Bureau of Economic Analysis and Bureau of Labor Statistics data). Recessions are highlighted in gray.
    State Rank
    State vs. US trend
    1

    Why did we include this measure?

    GDP measures the value of output of final goods and services—a state's economic production. Because GDP depends not just on the quantity of output but also on prices, the measure reflects the value of that output to consumers in their market exchanges. As such, it is an important measure of income and material well-being.

    View Economic Output Nationwide

    California State Trend Improving

  • Productivity
    Specific Measure

    Labor productivity of the private nonfarm sector, indexed to 2017

    (Source: Bureau of Labor Statistics). Recessions are highlighted in gray.
    State Rank
    State vs. US trend
    2

    Why did we include this measure?

    It is not just how much we produce that matters but how much time we need to put into it. Productivity growth is one of the main drivers of overall economic growth and signals increases in human and physical capital and innovations in products, technology, management, and work processes. This allows us to increase our material prosperity while also having leisure time to rest, exercise, vacation, and spend time with our families and friends and in civic and community activities.

    View Productivity Nationwide

    California State Trend Improving

Measures in green indicate an improving state trend or that this state ranks in the top third of states in the country.

Measures in red indicate a declining state trend or that this state ranks in the bottom third of states in the country.

Measures in yellow indicate stable trends or that this state ranks in the middle third of states in the country.