ICYMI: California’s best-in-class workforce drove nation-leading productivity growth in 2025

In 2025, workers in California’s private-sector, nonfarm businesses increased productivity by 4.2%, accounting for nearly one-third of the nation’s 1.8% productivity increase. In the evaluation of all 50 states and the District of Columbia, California was one of only two states to post productivity gains exceeding 4%. 

California’s productivity gains coincided with strong job growth, with the state adding 131,534 jobs over the past year—more than any other state during the same period. The Golden State is also home to four of the nation’s fastest-growing job markets through the first quarter of 2026.

The Golden State continues to lead the nation economically, outpacing all states and every developed nation, according to a recent Bloomberg analysis. In 2025, California continued a 16-year growth streak, growing faster than the second-largest state, Texas.

California also has more businesses than any other state, including Florida and Texas, supporting strong job creation and expanded economic opportunity for workers across the state. California is home to more than 4.3 million small businesses, representing 99.8% of all businesses in the state and employing 7.6 million people.

And California continues to lead the nation as the #1 state across key areas of economic strength and innovation, including: