California Economy

California Economy

On comparing California’s economy to the rest of the world and other states in the US, one could get an approximate idea of the inflow and outflow of monetary resources in the state. Californian economy is the largest amongst all states in the United States of America and ranks eighth globally.

California Economy As of 2008

  • The Gross State Product in 2008 was $1.85 trillion. This is as much as 13% the country’s Gross Domestic Product.  The Gross Domestic Product rate settled at 0.4%

Under the North American Industry Classification System, the economy of California is segregated into international trade and tourism and oil and electricity amongst others.

California International Trade and Tourism

  • Travel and tourism has been one of the major contributors to the economy of California in the United States of America. In 2008, the merchandise export trade reached an 11.1% mark. This was significantly lower than the 15.4% mark that was maintained in 2000.
  • The total revenue from exports in California in 2007 reached a staggering $134 billion out of which $48 billion was recovered from computers and electronics alone.  
  • In the year 2005, it was revealed, by the Bureau of Economic Analysis that 542,600 Californians were employed by multinational companies under foreign control, ranking the state first amongst all its counterparts.
  • The major foreign players on Californian soil during the year 2005 were the United Kingdom, Japan, Switzerland, France and Germany. These countries employed over 4.2% of the state’s total population in private enterprises.
  • Los Angeles is the most frequently visited place in the state.

Agriculture and Californian Economy

  • The economy of California is greatly influenced by the amount of agricultural investments and returns. California comes in 5th, worldwide, for its ability to export food and agricultural products all over the world.
  • Export of agricultural and perishable items from California have been gaining importance and have accounted for over 2% of the $1.85 trillion gross domestic product.
  • Californian economy benefitted greatly due to airborne exports and totaled revenue of $685 million in 2007. This enabled the state to export more products by air than 23 other states did, together, combining all means of transportation.

California Economy at a Glance

Data Series Dec 2009 Jan 2010 Feb 2010 Mar 2010 Apr 2010 May 2010
Labor Force Data
Civilian Labor Force 18,101.6 18,118.4 18,161.7 18,245.9 18,312.6 18,339.6
Employment 15,867.7 15,849.8 15,884.7 15,938.5 16,014.4 16,062.4
Unemployment 2,233.9 2,268.6 2,277.0 2,307.4 2,298.2 2,277.2
Unemployment Rate 12.3 12.5 12.5 12.6 12.5 12.4
Nonfarm Wage and Salary Employment
Total Nonfarm 13,809.6 13,835.0 13,837.8 13,851.8 13,877.2 13,905.5
12-month % change -5.7 -4.9 -3.9 -3.1 -2.4 -1.7
Mining and Logging 24.1 24.6 24.2 24.4 24.7 24.7
12-month % change -15.7 -12.8 -12.3 -10.6 -6.4 -3.9
Construction 568.5 577.8 558.5 555.7 554.2 552.0
12-month % change -21.8 -19.0 -17.4 -16.4 -14.2 -12.8
Manufacturing 1,231.2 1,241.3 1,242.1 1,241.3 1,237.1 1,238.4
12-month % change -10.6 -8.7 -7.0 -5.8 -5.1 -4.1
Trade, Transportation, and Utilities 2,573.5 2,575.3 2,579.6 2,583.1 2,582.5 2,572.9
12-month % change -6.2 -5.6 -4.7 -3.7 -3.1 -3.1
Information 449.5 437.7 452.3 450.1 445.8 450.5
12-month % change -4.7 -2.8 0.2 -0.7 0.8 2.0
Financial Activities 782.5 782.6 780.5 778.9 780.8 779.8
12-month % change -5.4 -4.7 -4.1 -3.6 -2.9 -2.5
Professional & Business Services 2,018.8 2,020.6 2,031.0 2,032.2 2,038.7 2,042.9
12-month % change -6.8 -6.2 -4.2 -2.9 -1.6 -0.7
Education & Health Services 1,747.2 1,754.7 1,760.5 1,768.0 1,766.6 1,761.5
12-month % change 0.2 0.7 1.3 1.6 1.9 1.4
Leisure & Hospitality 1,476.2 1,478.7 1,471.1 1,474.3 1,485.6 1,489.2
12-month % change -4.6 -3.8 -3.6 -2.5 -1.7 -1.4
Other Services 467.3 468.5 470.7 475.8 477.1 479.5
12-month % change -6.6 -6.0 -4.6 -3.0 -3.0 -2.0
Government 2,470.8 2,473.2 2,467.3 2,468.0 2,484.1 2,514.1
12-month % change -1.7 -1.5 -1.8 -1.7 -1.5 0.1
Mass Layoffs
Layoff events, all industries 412 533 335 373 477 345
Initial claimants, all industries 30,229 46,474 23,191 28,180 42,426 31,197

California Economy Statistics

  Number Percent
Employment Status
Population 16 years and over 25,596,144 100.0
In labor force 15,977,879 62.4
Civilian labor force 15,829,202 61.8
Employed 14,718,928 57.5
Unemployed 1,110,274 4.3
Percent of civilian labor force 7.0 (X)
Armed Forces 148,677 0.6
Not in labor force 9,618,265 37.6
Females 16 years and over 12,998,409 100.0
In labor force 7,212,610 55.5
Civilian labor force 7,195,990 55.4
Employed 6,673,578 51.3
Own children under 6 years 2,782,416 100.0
All parents in family in labor force 1,441,714 51.8
Commutin to Work
Workers 16 years and over 14,525,322 100.0
Car, truck, or van -- drove alone 10,432,462 71.8
Car, truck, or van -- carpooled 2,113,313 14.5
Public transportation (including taxicab) 736,037 5.1
Walked 414,581 2.9
Other means 271,893 1.9
Worked at home 557,036 3.8
Mean travel time to work (minutes) 27.7 (X)
Employed civilian population 16 years and over 14,718,928 100.0
Occupation
Management, professional, and related occupations 5,295,069 36.0
Service occupations 2,173,874 14.8
Sales and office occupations 3,939,383 26.8
Farming, fishing, and forestry occupations 196,695 1.3
Construction, extraction, and maintenance occupations 1,239,160 8.4
Production, transportation, and material moving occupations 1,874,747 12.7
Industry
Agriculture, forestry, fishing and hunting, and mining 282,717 1.9
Construction 915,023 6.2
Manufacturing 1,930,141 13.1
Wholesale trade 596,309 4.1
Retail trade 1,641,243 11.2
Transportation and warehousing, and utilities 689,387 4.7
Information 577,463 3.9
Finance, insurance, real estate, and rental and leasing 1,016,916 6.9
Professional, scientific, management, administrative, and waste management services 1,711,625 11.6
Educational, health and social services 2,723,928 18.5
Arts, entertainment, recreation, accommodation and food services 1,204,211 8.2
Other services (except public administration) 761,154 5.2
Public administration 668,811 4.5
Class of Worker
Private wage and salary workers 11,257,393 76.5
Government workers 2,158,071 14.7
Self-employed workers in own not incorporated business 1,249,530 8.5
Unpaid family workers 53,934 0.4
Income in 1999
Households 11,512,020 100.0
Less than $10,000 967,089 8.4
$10,000 to $14,999 648,780 5.6
$15,000 to $24,999 1,318,246 11.5
$25,000 to $34,999 1,315,085 11.4
$35,000 to $49,999 1,745,961 15.2
$50,000 to $74,999 2,202,873 19.1
$75,000 to $99,999 1,326,569 11.5
$100,000 to $149,999 1,192,618 10.4
$150,000 to $199,999 385,248 3.3
$200,000 or more 409,551 3.6
Median household income (dollars) 47,493 (X)
With earnings 9,502,776 82.5
Mean earnings (dollars) 64,725 (X)
With Social Security income 2,565,234 22.3
Mean Social Security income (dollars) 11,331 (X)
With Supplemental Security Income 607,106 5.3
Mean Supplemental Security Income (dollars) 6,990 (X)
With public assistance income 563,409 4.9
Mean public assistance income (dollars) 4,819 (X)
With retirement income 1,774,452 15.4
Mean retirement income (dollars) 18,826 (X)
Families 7,985,489 100.0
Less than $10,000 457,118 5.7
$10,000 to $14,999 365,527 4.6
$15,000 to $24,999 834,317 10.4
$25,000 to $34,999 873,396 10.9
$35,000 to $49,999 1,207,938 15.1
$50,000 to $74,999 1,615,410 20.2
$75,000 to $99,999 1,034,671 13.0
$100,000 to $149,999 955,377 12.0
$150,000 to $199,999 310,407 3.9
$200,000 or more 331,328 4.1
Median family income (dollars) 53,025 (X)
Per capita income (dollars) 22,711 (X)
Median earnings (dollars):    
Male full-time, year-round workers 40,627 (X)
Female full-time, year-round workers 31,722 (X)
Poverty Status in 1999
Families 845,991 (X)
Percent below poverty level (X) 10.6
With related children under 18 years 699,159 (X)
Percent below poverty level (X) 15.3
With related children under 5 years 366,529 (X)
Percent below poverty level (X) 19.0
Families with female householder, no husband present 350,138 (X)
Percent below poverty level (X) 25.0
With related children under 18 years 310,533 (X)
Percent below poverty level (X) 32.5
With related children under 5 years 147,900 (X)
Percent below poverty level (X) 44.0
Individuals 4,706,130 (X)
Percent below poverty level (X) 14.2
18 years and over 2,949,030 (X)
Percent below poverty level (X) 12.3
65 years and over 280,411 (X)
Percent below poverty level (X) 8.1
Related children under 18 years 1,705,797 (X)
Percent below poverty level (X) 19.0
Related children 5 to 17 years 1,216,541 (X)
Percent below poverty level (X) 18.5
Unrelated individuals 15 years and over 1,321,169 (X)
Percent below poverty level (X) 23.1

California Economy Stats

Employment 16,874,149 [1st of 52]
Gross State Product > Current Dollars $1,543,835,000,000.00 [1st of 56]
Median Earnings for Male Full-Time, Year-Round Workers $42,626.00 [16th of 51]
Median Family Income $58,327.00 [14th of 51]
Median Household Income $51,185.00 [9th of 51]
Nest Egg Index 97.86 [32nd of 50]
Percent below poverty level 13.3% [20th of 51]
Percent of Children Below Poverty Level 18.9 % [21st of 51]
Percent of Households With Retirement Income 15.3 % [40th of 51]
Percentof People 65 Years and Over Below Poverty Level 7.8 % [34th of 51]
Percentof Related Children Below Poverty Level 18.5 % [20th of 51]
Personalincome $1,340,319,000,000.00 [1st of 51]
Totaltax burden $85,721,483,000.00 [1st of 50]
Totaltax burden (per capita) $2,391.65 [9th of 50]
Unemployment 847,509 [1st of 52]
Unemploymentrate 4.8% [17th of 52]
Welfare Caseloads > Percent change in total families -4% [34th of 54]
Welfare Caseloads > Percent change in total recipients -7.6% [37th of 54]
Welfare Caseloads > Total families 449,170 [1st of 54]
Welfare Caseloads > Total recipients 1,085,627 [1st of 54]

California Taxation

California Corporate Tax Rates

Entity Type Tax Rate
Corporations other than banks and financials 8.84%
Banks and financials 10.84%
Alternative Minimum Tax (AMT) rate 6.65%
S corporation rate 1.5%
S corporation bank and financial rate 3.5%

California Standard Deductions

Filing Status Deduction Amount
Single and married/RDP filing separately $3,516
Married/RDP filing jointly, head of household and qualifying widow(er) $7,032
The minimum standard deduction for dependents $850

California Tax Rate Schedules

If the Taxable Income is
Over But not over Tax is Of Amount Over
$0 $6,827 $0.00 Plus 1% $0
$6,827 $16,185 $68.27 Plus 2% $6,827
$16,185 $25,544 $255.43 Plus 4% $16,185
$25,544 $35,460 $629.79 Plus 6% $25,544
$35,460 $44,814 $1,224.75 Plus 8% $35,460
$44,814 And over $1,973.07 Plus 9.3% $44,814