Under Governor Gavin Newsom, California's economy has seen significant growth, adding over $1.5 trillion since his tenure began. At the 2026 California Economic Summit in Long Beach, Newsom emphasized that the state's economic output has reached $4.5 trillion, solidifying its position as a leader in nearly every major sector.

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California accounts for approximately 14% of the U.S. GDP with only 11.5% of the nation's population, exceeding Texas's economy by 47%. A Bloomberg analysis confirms that California has consistently outpaced all other states and developed nations economically.

The state leads the country in 17 out of 20 major economic sectors, including key areas like manufacturing, agriculture, construction, and health care. The manufacturing sector alone generated $391 billion in 2025, representing an 18% increase over Texas.

In terms of growth rates, California saw a 3.5% increase in 2025 compared to 2.8% in Texas and Florida and 2.5% in New York. Additionally, with over 4.3 million small businesses, which employ 7.6 million people, California has been a major contributor to job creation, accounting for nearly 25% of the nation's new jobs added in the last year. From August 2025 through August 2026, the state added 138,500 jobs out of a national total of 603,000.

Average weekly wages in California reached $1,986 in early 2026, surpassing the national average by 20%. Increases in paid sick leave and family leave under Newsom's leadership have also improved workers' financial security.

California's minimum wage has risen from $12 to a projected $17.40 in the coming year, more than double the federal minimum wage. Overall, California's private nonfarm economic productivity grew by 4.2% in 2025, a rate more than double the nation’s average.

The state continued to lead in innovation, with Governor Newsom's proposed $7.5 billion research bond geared towards advanced technology and scientific research. In 2026, California companies attracted $366 billion in venture capital, more than the total from the other 49 states combined.

California's research institutions are also at the forefront, receiving over 50,000 U.S. patents in fiscal year 2025, while the University of California system secured the highest number of patents for any university globally. Additionally, California's life sciences sector generated $394 billion and supported over one million jobs in 2025.

To address potential job disruptions from AI technology, Newsom has initiated measures to ensure worker protections, including legislative actions to limit the use of AI in employment decisions and enhance workplace privacy. Recent legislative updates focused on antitrust laws aim to foster fair competition and protect small businesses.

The Jobs First initiative, established in 2021, has allocated significant resources to regional economic development. Recent investments are projected to create approximately 20,000 jobs across California, demonstrating a commitment to sustaining growth and enhancing community engagement.