US EditionCalifornia state report warns economy is 'stagnant,' 'fragile'
- California's Legislative Analyst's Office released a February 2025 report describing the state's economy as stagnant and fragile, with ongoing job losses and falling revenues.
- This economic weakness follows over two years of slowdown marked by nearly 200,000 private sector job losses since January 2023 and no jobs added in 2025.
- Declining consumer spending, a 13% rise in credit card delinquencies from 2023 to 2024, and dependence on stock market gains rather than wages contribute to economic strain.
- Nearly four million Californians owe $151 billion in federal student loans, and resuming payments for about 2.5 million borrowers may reduce disposable income further.
- The LAO warns that combined structural weaknesses and recent federal policies increase recession risks and could deepen California's economic fragility.
24 Articles
24 Articles
Los Angeles Times
Despite political promises, Californians are stressed about their finances
California's legislative leaders are working on their promises to address affordability, but voters are growing more concerned about their financial future.
California Economy Stagnant Report Signals Trouble Ahead - American Faith
A new report from California’s Legislative Analyst’s Office (LAO) paints a bleak picture of the state’s economy, describing it as “stagnant” and “fragile,” with job losses, falling consumer spending, and unsustainable reliance on stock market gains driving serious fiscal concerns. The warning is backed by multiple indicators showing the state slipping toward recession territory. California has added no new jobs in 2025, with nearly 200,000 priva…
The Avery Journal-Times
California state report warns economy is 'stagnant,' 'fragile'
(The Center Square) - A new report from the state-funded Legislative Analyst’s Office has found the California economy is “stagnant” and “fragile,” with “less revenue expected." The report cites sustained job losses, declining consumer spending, an “unsustainable” stock market and…
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