Sacramento, California – California’s economic weight is showing up in more than the size of its GDP. New figures highlighted by Gov. Gavin Newsom point to a state adding jobs faster than its peers, lifting wages and accounting for a disproportionate share of U.S. economic growth.
The numbers are especially striking when compared with California’s share of the population. The state represents about 12% of Americans but generates roughly 14% of total U.S. economic output.
Between the first quarter of 2025 and the first quarter of 2026, California employers added approximately 131,534 jobs, the largest gain of any state during that period. Since the beginning of 2026, California has accounted for 16.5% of overall U.S. job growth.
Newsom said the results reflect investments across industries ranging from clean energy and manufacturing to health care and logistics.
“California isn’t just keeping pace — we’re driving the national economy,” Newsom said, pointing to the state’s position as the world’s fourth-largest economy and its role in creating new jobs.
Paychecks have also moved higher. Average weekly wages reached $1,954 in the fourth quarter of 2025, up 4.6% from a year earlier. That exceeded the national wage increase of 4.2%.
Another increase is already scheduled. California’s statewide minimum wage will rise to $17.40 an hour on Jan. 1, 2027, nearly two-and-a-half times the federal minimum wage.
The broader economy has expanded sharply as well. California’s annual GDP reached $4.25 trillion in 2025, an increase of more than $1.18 trillion since Newsom took office. First-quarter 2026 output reached an annualized $4.4 trillion.
During that quarter, California’s economy grew at a 3.7% annualized rate, compared with 2.1% nationally, 0.9% in Texas and 1.6% in Florida.
California also remains a major small-business center, with more than 4.3 million small businesses employing 7.6 million people. State figures also rank California first nationally in new business starts, manufacturing, high-tech business, agriculture and venture capital — adding another layer to an economy that continues to influence growth far beyond its borders.