California workers earn 20% more than national average, Newsom highlights major growth in jobs, wages and business investment
Sacramento, California – California’s economy is not just large by U.S. standards. With output reaching about $4.5 trillion, the state now produces an outsized share of the nation’s economic activity while remaining a center for manufacturing, technology, agriculture, research and life sciences.
Governor Gavin Newsom used the 2026 California Economic Summit in Long Beach to highlight that scale, pointing to job growth, wages, business activity and investment as signs that California continues to hold a leading position across major sectors.
Since Newsom took office, California’s economy has grown by more than $1.58 trillion. Although the state represents about 11.5% of the U.S. population, it accounts for nearly 14% of national GDP. California also leads the country in 17 of 20 major economic sectors, according to figures released by the governor’s office.
Manufacturing alone generated $391 billion in economic output in 2025, while inflation-adjusted statewide economic growth reached 3.5% that year. Texas and Florida each grew 2.8%, while New York posted 2.5%.
Job creation has also been a major part of the administration’s economic message. California added 138,500 of the 603,000 net payroll jobs created nationwide between August 2025 and August 2026, or roughly 23% of the total. During the first eight months of 2026, the state added 114,700 jobs.
Workers have seen higher earnings as well. Average weekly wages reached $1,986 during the first quarter of 2026, about 20% above the national average. California is also home to more than 4.3 million small businesses employing 7.6 million people.
“California has created the formula for success, with more jobs and more businesses, leading in every sector across the board,” Newsom said.
Innovation remains central to the state’s strategy. California companies attracted $366 billion in venture capital through August 2026, more than three times the combined total raised in the other 49 states. The state’s colleges and universities also performed $14.4 billion in research and development during fiscal year 2024.
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Beyond statewide growth, California’s Jobs First initiative has directed investment toward regional economies. In 2025, nearly $1.6 billion was invested across all 13 regions, supporting more than 61,000 jobs and planned training opportunities for more than 142,000 workers.
The administration’s argument is clear: California’s economic advantage rests not on one industry, but on a broad mix of businesses, workers, research institutions and regional investment intended to keep the state competitive well beyond Newsom’s tenure.
