Cal Facts 2004
California's Economy and Budget in Perspective
California Is the World's Sixth
- California's gross state product is nearly $1.5
trillion, making it one of the world's largest economies.
- California accounts for over 13 percent of the
nation's output, and trails only Japan, Germany, the
United Kingdom, and France.
- Our nation's next largest state economy--New York--is about 60 percent the size of California's.
California's Economy Is
Share of State Employment in 2004
- The state's economy is highly diversified, with
workers and businesses in virtually every industry sector.
- In 2002, the U.S. government adopted an updated system of classifying economic activities (called
the North America Industry Classification System,
or NAICS), to better reflect today's economy.
- Under NAICS, the state's largest sector is trade,
transportation, and utilities, which encompasses
everything from major retail outlets, to import-export
businesses, to transportation and warehousing.
- Other major nongovernmental industries include
professional and business services, educational and
health services, and manufacturing. A new industry classification is information, which includes
production, broadcasting, and Internet businesses.
Foreign TradeAn Important
Source Of California Economic Activity
California Exports, 2003
- Exports of goods made in California totaled $94
billioi2003. Based on partial-year data, it appears
that exports will increase by over 20 percent in 2004.
- California-made exports directly account for about
- 8 percent of gross state product. In addition to
creating major markets for products of California
companies, foreign trade results in numerous jobs related to
port-related activity, wholesale trade, warehousing,
Construction and Services Have
Led Job Growth Over the Past Decade
Annual Average Percent Change in California Jobs, 1994 Through 2004
- California has added about 2.4 million jobs over
the past decade, an annual growth rate of 1.8 percent.
- The fastest growing sector has been construction, which has grown at an
average rate of 6 percent
- The bulk of new jobs, however, have been in the
state's large and diverse services sectors.
- Manufacturing declined by almost 160,000 jobs,
reflecting major reductions in high-tech jobs in 2001
California Home Prices Have Soared
Median Home Prices by Region, August 2004
- Home prices have soared in recent years, and
now stand at all-time highs.
- The statewide median home price rose from
$250,000 imid-2000 to $474,000 imid-2004.
- Orange County and the San Francisco Bay Area
have the highest median prices, each approaching $650,000. The least expensive
region is the
Central Valley, with a median price of $290,000.
California Is the Nation's
Leading Agricultural Producer
Top California Agricultural Products by Sales
- Total farming-related sales in California were
$26 billioi2002. This amount represented about
one-eighth of the national total, and equaled the total of
the second and third largest farm states--Texas
($14 billion) and Iowa ($12 billion).
- California is a major producer of fruits, nuts, and
berries (accounting for two-thirds of the national total), as
well as vegetables and melons (accounting for over
one-third of the national total).
- The state is a dominant producer of many
specialty crops, such as strawberries, kiwis, and artichokes.
California Population Growth To Slow
- California's population grew very rapidly in the
post World War II era, averaging well over 3.5
percent annually through the mid-1960s.
- Average growth since then, while still about twice
that of the nation, has slowed to somewhat under 2
- Despite this slower growth, California now has
roughly 36 million people, and has been adding more than half-a-million people yearly (adding a city the size of
Long Beach each year).
- Growth should taper in the future, reflecting stable in-migration and the on-going general trend of
The Inland Counties Have
Been Growing the Fastest
Total Population Growth, 1999-2004
- The highest population growth rates have
occurred mainly in the Central Valley and foothill counties,
and in Riverside and San Bernardino Counties in Southern California.
- The five Southern California counties of Los
Angeles, Orange, Riverside, San Bernardino, and San Diego account for 55 percent of California's total
population in 2004, and 59 percent of the total increase in population since 1999.
- Los Angeles County experienced the largest
absolute increase since 1999--more than three-quarters of
a million new people, or a quarter of statewide growth.
California's Age Mix Changing
As Baby Boomers Grow Older
Population Change2004 Through 2010
- Californians' average age is increasing, as
baby boomers enter their 50s and continue to cause
rapid growth of the 45-64 age group.
- The K-12 school-age population will grow the
slowest of all groups, reflecting declines in birth rates over
- the past decade and somewhat lower in-migration in recent years.
Over a Quarter of Californians
Are Foreign Born
- Due to strong past in-migration from other
nations, more than one-in-four of California's current residents 9.5 million
people were born outside of the
United States. This compares to one-in-eight nationally.
- About half of foreign-born Californians are from Latin America, while another third are from Asia.
- Net foreign in-migration currently totals around
200,000 persons annually. This represents roughly
40 percent of California's annual population growth.
The Legislative Analyst's Office (LAO) is a
nonpartisan office which provides fiscal and policy information and advice
to the Legislature.
To request publications call (916) 445-4656.
This report and others, as well as an E-mail
subscription service, are available on the LAO's Internet site at
www.lao.ca.gov. The LAO is located at 925 L Street, Suite 1000,
Sacramento, CA 95814.
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