California expected to suffer from a sluggish economy through early next year

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California has a bifurcated economy, with regions such as Los Angeles benefiting from tech investments, while other areas struggle with tariffs and the immigration crackdown, according to the latest UCLA Anderson Forecast.

The overall employment picture isn’t rosy, with the state losing 21,200 jobs in the first eight months of 2025, leaving it with an unemployment rate of 5.5%, which exceeds the national average by more than a point.

The forecast predicts sluggish growth through early 2026 for California’s economy, but growth is expected to accelerate later next year.

California’s economy has split between higher-growth areas such as Los Angeles benefiting from venture capital spe