Many things surprise me about the nation\u2019s economy under the second Trump administration, yet this trend might be the most startling.<\/p>\n
My trusty spreadsheet<\/a> compared the Bureau of Labor Statistics\u2019 state-by-state job counts<\/a> for the first quarter of 2026 with the previous year. That\u2019s basically Donald Trump\u2019s first year back in the White House.<\/p>\n During that time, California employers added 128,600 workers, more than any other state. The rest of the country added just 11,700.<\/p>\n Yes, hiring in the much-maligned California business climate equaled 92% of the nation\u2019s job creation in the past year. Or roughly 10 times more than the rest of America.<\/p>\n Let\u2019s 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.<\/p>\n At the same time, 25 states actually lost jobs.<\/p>\n The loser list was topped by Maryland (off 49,100), District of Columbia (off 42,600) and Virginia (off 33,100) \u2013 dips tied to Trump\u2019s trimming of federal workers \u2013 then Florida (off 30,600) and Oregon (off 20,100).<\/p>\n Which economic guru saw this coming? Now, California doubters might suggest the Golden State\u2019s success is largely about size.<\/p>\n It\u2019s true, California\u2019s job market is huge, with 18.1 million workers\u2014the 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.<\/p>\n But even considering California\u2019s size, its workers are having a better start to 2026 than most Americans.<\/p>\n 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\u2019s meek 0.1% expansion.<\/p>\n 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%.<\/p>\n Under-appreciated<\/p>\n Why does the Golden State see such an unexpected employment bump?<\/p>\n My guess is that it\u2019s partly about the under-appreciated flexibility in the California economy. Bosses and workers are used to the ups and downs of business cycles.<\/p>\n So far, the clash between Trump\u2019s \u201cAmerica First\u201d policies and California\u2019s global outlook hasn\u2019t caused major problems.<\/p>\n In addition, despite all the chatter about California shrinking its technology clout, the state remains the epicenter of this job-creating machine. And tech\u2019s latest hotspot \u2013 artificial intelligence \u2013 is being pioneered in the Golden State.<\/p>\n Nothing new<\/p>\n A resilient and expanding job market is nothing new for California. Let\u2019s look back a decade.<\/p>\n Since the first quarter of 2016, California bosses added 1.8 million workers, or 12% of the nation\u2019s 14.6 million jobs.<\/p>\n 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.<\/p>\n Over the past ten years, only three places lost jobs: the District of Columbia lost 53,600, Vermont lost 900, and Hawaii lost 100.<\/p>\n Even in percentage terms, California job creation was noteworthy. The 11% increase ranked 14th-best among the states and topped the nation\u2019s 10% growth.<\/p>\n Of course, others grew far faster: Idaho (up 28%), Utah (up 26%), Nevada (up 25%), Arizona (up 22%) \u2013 and arch-rivals Florida and Texas, both up 20%.<\/p>\n This employment growth is more than bragging rights for California.<\/p>\n It helps explain trends that might otherwise seem odd \u2014 from stubbornly lofty home prices and rents to the state government\u2019s recently strong tax collections to why freeways are jammed while a supposed \u201cexodus\u201d of residents continues.<\/p>\n Troublesome trend<\/p>\n This state-level scorecard hides a troublesome trend in early 2026. The job market is weak nationwide.<\/p>\n While California\u2019s 128,600 new workers in the first quarter top the nation, compared with the start of 2025, it\u2019s 29% below the state\u2019s average job creation of 181,300 per year since 2016.<\/p>\n Still, California\u2019s 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.<\/p>\n It\u2019s no wonder people are worried about their finances.<\/p>\n Metro moves<\/p>\n California is home to four of the country\u2019s fastest-growing job markets.<\/p>\n Peek at the one-year employment change through 2026\u2019s first quarter across the nation\u2019s 100 metropolitan areas with the largest job markets.\u00a0Stockton had the fastest job growth in California, with 2.1% more jobs over the past year. This was the second-highest growth rate in the country, just behind Fayetteville, Arkansas, at 2.4%.<\/p>\n The three other California job markets among the 10 fastest-growing this year were San Jose\u2019s 1.4% increase, ranked sixth; Fresno\u2019s 1.35% increase, ranked eighth; and Bakersfield\u2019s 1.3% increase, ranked ninth.<\/p>\n By the way, only one of California\u2019s 10 largest metros lost jobs: Ventura County, down 0.3% over the year, ranked 74th out of 100. The other large California job markets, ranked by percentage growth:<\/p>\n \u2013 Sacramento: Its 0.72% employment increase ranked 26th among the 100 metros.<\/p>\n \u2013 Inland Empire: 0.71% increase, No. 27.<\/p>\n \u2013 San Diego: 0.6% increase, No. 31.<\/p>\n \u2013 Los Angeles-Orange County: 0.32% increase, No. 42.<\/p>\n \u2013 San Francisco: 0.3% increase, No. 44.<\/p>\n Finally, here\u2019s another sign of U.S. job weakness: Employment dropped in the past year in 44 of the nation\u2019s 100 employment hubs, with the largest loss in Washington, D.C., at 3.1%.<\/p>\n