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California's Economy Faces Mild Contraction, Unemployment to Hit 6.1%

6/19/2025

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Summary

Story summary

UCLA's Anderson Forecast anticipates a mild contraction in California's economy, with unemployment projected at 6.1% by 2025.
The contraction is attributed to President Trump's tariffs and immigration policies, which may drive inflation and impede growth.
Stagnation in key sectors such as technology and construction is affecting job growth and consumer spending.
Nationally, modest economic recovery is expected through 2027, with California's growth forecasted at only 0.1% in 2025.

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Story summary

UCLA's Anderson Forecast anticipates a mild contraction in California's economy, with unemployment projected at 6.1% by 2025.
The contraction is attributed to President Trump's tariffs and immigration policies, which may drive inflation and impede growth.
Stagnation in key sectors such as technology and construction is affecting job growth and consumer spending.
Nationally, modest economic recovery is expected through 2027, with California's growth forecasted at only 0.1% in 2025.