Quality of Life: Economy and Economic Opportunity

Indicators of California's economy and economic opportunity serve as measures of prosperity and opportunities for prosperity.  These indicators include per capita income, median household income, unemployment rates, poverty rates and employment growth.  Please click here for a pdf of the full set of indicators on the economy and economic opportunity.

  • California is ranked 10th in the nation on per capita income, a measure of wealth that factors in the number of residents in each state.  In 2006, California's per capita income was $39,359, up from $25,312 in 1996.
  • California is home to some of the wealthiest and poorest communities in the nation.  Among the nation's 364 Metropolitan Statistical Areas, or regional groupings of communities, four of the top 15 wealthiest areas and three of the poorest 15 areas - as measured by per capita income - are in California.
  • California's average household income is rising.  From 1996 to 2000, median household income, which reflects the average earnings of all the people who share a household, grew from $49,664 to $55,319 (inflation adjusted), an increase of 11.4 percent.  During that time period, the national median household income posted 6.1 percent growth.
  • Economic gains are tied to employment and many Californians struggle to find work.  In December 2007, California's labor force included 18.4 million workers.  Of those, 17.3 million were employed and more than 1.1 million were out of work.  Another 595,000 workers report they would like a job, but are not counted as part of the labor force because they are not actively looking for work. 
  • Unemployment challenges are particularly difficult for Blacks and Latinos.  In November 2007, the unemployment rate for Hispanics was 6.3 percent and 9.5 percent for Blacks, significantly higher than the rate of 5.6 for white Californians.
  • The percentage of families living in poverty is declining but challenges remain.  From 1996 to 2006, California reduced its poverty rate from 16.9 percent to 12.2 percent.  But seven of California's counties have poverty rates above 20 percent, indicating that one in five families in those counties did not earn enough money to meet basic needs.
  • To address poverty and unemployment, California must grow its employment base.  From 2001 to 2005, California increased employment by 3.48 percent, but eight states posted double-digit increases during those same years.
  • California may be losing its edge in a knowledge-based economy.  Jobs in California are divided into 11 broad categories or industries.  From 1996 to 2006, as a percentage of all jobs, California lost jobs in farming, information, manufacturing, government, and trade, transportation and utilities.  The greatest increase was in construction, an area that has been particularly hard hit by the recent downturn in the housing market.