STATE ECONOMIC PROFILE
California Economic Overview
$3.4tn
GROSS STATE PRODUCT
Growth Rate 2020-25
State Growth Rank
3.3%
20
39,541,372
POPULATION
Growth Rate 2020-25
State Growth Rank
0.0%
44
4,826,391
BUSINESSES
Growth Rate 2020-25
State Growth Rank
3.3%
17
Overview of the California Economy
In 2025, the state of California has a population of 39,541,372, having grown an annualized 0.0% over the five years to 2025, which ranks it 44th out of all 50 US states by growth rate. California's gross state product (GSP) in 2025 reached $3.4tn, with growth of 3.3% over the 5 years to 2025. Businesses in California employed a total of 21,566,427 people in 2025, with average annual employment growth over the past five years of 2.5%. The top three sectors by total employment are Information, Real Estate and Rental and Leasing, Professional, Scientific and Technical Services, while the unemployment rate across the state in 2025 was 6.0%.
What is California's Gross Domestic Product (GDP)?
In 2025, California's GDP reached $3.4tn, representing an increase of 3.3% from 2024. California's GDP has grown at an annualized rate of 2.8% over the five years to 2025. Moreover, California's trailing five-year GDP growth ranks it 20th 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
What are California's Largest Industries by Revenue?
The largest industries by revenue in California are Drug, Cosmetic & Toiletry Wholesaling, Health & Medical Insurance and Automobile Wholesaling, which generated $201.7b, $199.2b and $193.9b in 2025.
STATE ECONOMIC PROFILE
Top Companies in California
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 2025.
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 and Rental and Leasing and Professional, Scientific and Technical Services sectors contributed the most to California's GDP in 2025, representing a combined 44.5% of state GDP.
GDP trends by sector are an important indicator of which sectors are contributing the most value-add to the state's economy, in addition to how the state economy is evolving over time.
What is California's Employment by Sector?
The Healthcare and Social Assistance, Retail Trade and Professional, Scientific and Technical Services sectors contributed the most to employment in California in 2025, representing a combined 33.2% 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.
STATE ECONOMIC PROFILE
California Employment Trends
21.6m
EMPLOYMENT
Growth Rate 2020-25
State Growth Rank
1.6%
38
6.0%
UNEMPLOYMENT
Growth Rate 2020-25
State Growth Rank
-9.5%
25
What Employment Trends are Impacting California?
The state of California employs 21,566,427 people in 2025, which ranks it 1st out of all 50 US states. Employment in California has grown at an annualized rate of 1.6% over the five years to 2025, underperforming the national average of 2.0%. Major sectors by employment in California include Healthcare and Social Assistance, Retail Trade and Professional, Scientific and Technical Services, which employed 2,614,652, 2,455,012 and 2,080,847 people in 2025, respectively. California's unemployment rate is 6.0% in 2025, which ranks it 49th out of 50 states. California's unemployment rate has trended downwards at a rate of -9.5% over the five years to 2025, 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.
$204.8k
PER CAPITA DISPOSABLE INCOME
Growth Rate 2020-25
State Growth Rank
7.1
25
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 2025 was $204.8k, compared to the US average of $143.7k, which places it 25th 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
$40,018.0tn
NONRESIDENTIAL CONSTRUCTION
Growth Rate 2020-25
State Growth Rank
12.3%
31
$27.1tn
RESIDENTIAL CONSTRUCTION
Growth Rate 2020-25
State Growth Rank
1.5%
10
96,607
BUILDING PERMITS
Growth Rate 2020-25
State Growth Rank
-1.8%
16
What can construction trends tell you about a state’s economy?
In California, non-residential construction was $40,018.0tn in 2025, which ranks it 31st out of all US states. Residential construction was $27.1tn in 2025, which places California 10th in the United States. The number of building permits issued in California in 2025 was 96,607, representing a -1.8% annualized growth rate between 2020 and 2025.
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 9,509,020, 3,258,549 and 3,109,881 people in 2025.
STATE ECONOMIC PROFILE
California Demographics
Education Level California
Race in California
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 by providing 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 651 California Industry Reports.
