California's economic outlook for 2025 remains positive, with the state's economy expected to grow above trend at 2.4%[2]. Governor Newsom recently unveiled a statewide plan for economic growth, announcing $245 million in investments to support workers and bolster the Los Angeles region's ongoing recovery from wildfires[6]. The plan, dubbed the California Jobs First Economic Blueprint, aims to drive sustainable economic growth, innovation, and access to good-paying jobs over the next decade.
In a groundbreaking initiative, California is set to launch the nation's first digital democracy effort to improve public engagement[1]. The Engaged California program will bring together community voices and viewpoints supported by digital platforms, empowering Californians to help inform policy decisions and program design. The pilot program will initially focus on helping Los Angeles recover and rebuild following recent firestorms.
On the environmental front, AccuWeather experts predict that California will remain drought-free through 2025, following two winters of epic storms[3]. This forecast comes as a relief to many Californians who have faced severe drought conditions in recent years. However, the state continues to grapple with wildfire risks, as evidenced by the devastating fires that struck Los Angeles in early January 2025[7]. These fires were fueled by a combination of dry vegetation resulting from a "hydroclimate whiplash" effect and strong Santa Ana winds.
The Los Angeles County Economic Development Corporation's 2025 Economic Forecast Report projects real GDP growth for the county at 2.1% in 2025, with nonfarm payroll jobs expected to grow by 0.7%[10]. However, unemployment is projected to rise to 6.1%, up from 5.7% in 2024. The report also highlights ongoing challenges in housing affordability, with just 11% of households able to afford a median-priced home.
Looking ahead, California faces both opportunities and challenges. The state is preparing for major events such as the 2028 Olympics, which continue to drive infrastructure investment and business opportunities. However, regional wildfire risk and climate resilience remain significant concerns for long-term economic planning. Additionally, two storm systems are expected to bring heavy rain and mountain snow to Central and Southern California in early March, potentially impacting local communities and infrastructure[9].
This content was created in partnership and with the help of Artificial Intelligence AI