What you need to know: Most of California’s jobs are in the private sector. California is home to 1.7 million private sector businesses that account for nearly 87% of California’s jobs.

SACRAMENTO - California’s 1.7 million private sector businesses remain the largest employer group in the state and continue to create the most jobs. Between January 2022 and June 2024, employers in California created more 523,000 jobs in the private sector alone.

California is the strongest economy in the nation, with one of the country’s most equitable tax systems, and standing ahead of all other states as:

-- #1 in Fortune 500 companies

-- #1 in new business starts

-- #1 in manufacturing

-- #1 in venture capital funding

-- #1 in high-tech business

-- #1 in agriculture

-- #1 in tourism

“California is an economic powerhouse - we’re driving the future of the American economy. We’re focused on creating pathways to opportunity that benefit businesses, workers, and families alike.” - Governor Gavin Newsom

California remains the 5th largest economy in the world for the seventh consecutive year, with a nominal GDP of nearly $3.9 trillion in 2023 and a growth rate of 6.1% since the year prior, according to the U.S. Bureau of Economic Analysis. On a per capita basis, California is the second-largest economy in the world among large economies.

Most companies on the Fortune 500 list

California is home to the most Fortune 500 companies in the nation  - beating out Texas, Florida, and all other states.  California is home to 1.7 million private sector businesses that account for nearly 87% of California’s jobs. Plus, leading the next generation, California is home to 32 of the world’s 50 leading AI companies.

Most revenue-generating companies

California also tops the list of Inc. Magazine’s annual rankings of the top 5,000 companies for revenue growth over the past three years, with 672 businesses generating 874,940 jobs and $317 billion in revenue over three years, and a median revenue growth of 1.637%.

Highest level of tourism spending

California has the largest market share of tourism in the nation. Travel spending in the state reached an all-time high of $150.4 billion last year - spending that is 3.8% higher than 2019 and 5.6% higher than 2022. 

The new travel-spending record generated $12.7 billion in state and local tax revenue by visitors in 2023, marking a 3% increase over 2019. Tourism created 64,900 new jobs in 2023, bringing total industry employment to 1,155,000.

California Jobs First 

California is working with local partners across the state on a regional approach to job creation and economic development. Between January 2022 and June 2024, employers in California created more than 672,000 jobs, with approximately 78%, or 523,000 jobs created in the private sector alone

To continue to foster growth and expansion, Governor Newsom, along with regional partners in 13 economic regions, recently announced the framework for the forthcoming California Jobs First Economic Blueprint to guide the state’s investments in key sectors to drive sustainable economic growth, innovation, and access to good-paying jobs over the next decade. The complete Economic Blueprint will be released early next year, along with $120 million to support “ready-to-go” job-creating projects statewide within the next three years.