Many things surprise me about the nation’s economy under the second Trump administration, yet this trend might be the most startling.
My trusty spreadsheet compared the Bureau of Labor Statistics’ state-by-state job counts for the first quarter of 2026 with the previous year. That’s basically Donald Trump’s first year back in the White House.
During that time, California employers added 128,600 workers, more than any other state. The rest of the country added just 11,700.
Yes, hiring in the much-maligned California business climate equaled 92% of the nation’s job creation in the past year. Or roughly 10 times more than the rest of America.
Let’s note the No. 2 state for employment growth was Texas at 96,300, followed by North Carolina at 40,300, Nevada at 31,700 and Pennsylvania at 24,000.
At the same time, 25 states actually lost jobs.
The loser list was topped by Maryland (off 49,100), District of Columbia (off 42,600) and Virginia (off 33,100) – dips tied to Trump’s trimming of federal workers – then Florida (off 30,600) and Oregon (off 20,100).
Which economic guru saw this coming? Now, California doubters might suggest the Golden State’s success is largely about size.
It’s true, California’s job market is huge, with 18.1 million workers—the largest in the country and 11% of all U.S. jobs. Texas is next with 14.4 million, then New York and Florida with 10 million each, and Pennsylvania with 6.2 million.
But even considering California’s size, its workers are having a better start to 2026 than most Americans.
This California job creation equals an 0.7% one-year growth rate, the fourth-fastest pace among the states and far quicker than the nation’s meek 0.1% expansion.
Nevada led with 2% job growth, while South Carolina and North Carolina both grew by 0.8%. The biggest drops were in the District of Columbia, down 5.6%, Maryland down 1.7%, Iowa down 1.2%, Oregon down 1.0%, and New Hampshire down 0.8%.
Under-appreciated
Why does the Golden State see such an unexpected employment bump?
My guess is that it’s partly about the under-appreciated flexibility in the California economy. Bosses and workers are used to the ups and downs of business cycles.
So far, the clash between Trump’s “America First” policies and California’s global outlook hasn’t caused major problems.
In addition, despite all the chatter about California shrinking its technology clout, the state remains the epicenter of this job-creating machine. And tech’s latest hotspot – artificial intelligence – is being pioneered in the Golden State.
Nothing new
A resilient and expanding job market is nothing new for California. Let’s look back a decade.
Since the first quarter of 2016, California bosses added 1.8 million workers, or 12% of the nation’s 14.6 million jobs.
Only Texas added more jobs, with 2.4 million. Florida followed with 1.7 million, then North Carolina with 758,000, and Georgia with 651,100.
Over the past ten years, only three places lost jobs: the District of Columbia lost 53,600, Vermont lost 900, and Hawaii lost 100.
Even in percentage terms, California job creation was noteworthy. The 11% increase ranked 14th-best among the states and topped the nation’s 10% growth.
Yes, others grew far faster: Idaho (up 28%), Utah (up 26%), Nevada (up 25%), Arizona (up 22%) – and arch-rivals Florida and Texas, both up 20%.
This employment growth is more than bragging rights for California.
It helps explain trends that might otherwise seem odd — from stubbornly lofty home prices and rents to the state government’s recently strong tax collections to why freeways are jammed while a supposed “exodus” of residents continues.
Troublesome trend
This state-level scorecard hides a troublesome trend in early 2026. The job market is weak nationwide.
While California’s 128,600 new workers in the first quarter top the nation, compared with the start of 2025, it’s 29% below the state’s average job creation of 181,300 per year since 2016.
Still, California’s slowdown is minor compared to the rest of the country. The rest of the U.S. added just 11,700 jobs, which is 99% below the usual 1.3 million per year.
It’s no wonder people are worried about their finances.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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