California: key negative statistics during Gavin Newsom’s tenure as governor

 

Some of the most commonly cited negative statistics about California during Gavin Newsom’s tenure as governor involve the state’s persistent economic challenges, high unemployment rates, ongoing budget deficits, declining private sector jobs, rising cost of living, increased homelessness, and public dissatisfaction with the direction of the state.

Key Negative Statistics

High Unemployment and Job Loss

California’s unemployment rate has consistently been among the nation’s highest, with the rate rising from 5.3% to 6.1% in 2025, compared to the national average of 4.2%.

California lost 54,800 jobs in the first quarter of 2025, and since 2023 there has been a net loss of nearly 200,000 private sector jobs.

The state has the largest share of the nation’s unemployed (15.6%), despite having a smaller percentage of the population.

Economic Stagnation and Budget Troubles

California faces recurrent budget deficits, with a $12 billion deficit in 2025 and annual projected deficits over $20 billion.

Three in four Californians say the state economy will have “bad times” financially during the next year.

43% of Californians think the budget situation is a major problem and only 44% of adults approve of Newsom’s job performance as governor.

Rising Cost of Living and Regulatory Burden

Cost of living, particularly housing and fast food prices, has soared, with fast food prices up 14.5% after a $20/hour minimum wage law that also resulted in the loss of more than 20,000 fast food jobs.

California is criticized for its heavy regulatory environment, with over 420,000 total regulations, and diminished purchasing power that drops the state’s ranking from fourth in the world by nominal GDP to eleventh when adjusted for living costs.

Public Sentiment

A recent survey found that 54% of Californians believe the state is headed in the wrong direction, a figure that has increased since Newsom took office.

One in three Californians is financially worse off today than a year ago; half say price increases caused hardship.

Additional Points Often Cited

Businesses are leaving California in significant numbers, citing tax burdens and regulation.

Homelessness remains high, and housing affordability is consistently among the state’s top public concerns.

These statistics are commonly referenced by critics who argue that Gavin Newsom’s policies have not produced positive results for the state’s economy, employment, or public satisfaction.

In addition:

Unemployment and Employment:

California’s unemployment rate stood at about 5.5% in July 2025, higher than the national average of approximately 4.2%, and among the highest in the U.S.[1][3][5].

Though 15,000 jobs were added in July 2025, the unemployment rate slightly rose from the previous month, and the number of unemployment insurance claimants remains high, with over 386,000 people certifying for benefits in July 2025[3].

Certain counties exhibit very high unemployment rates—for example, Imperial County at 18.9%, while even large counties like Los Angeles have unemployment near 5.9%[1].

Reports indicate net loss of private sector jobs since 2023, with figures showing California lost about 54,800 jobs in early 2025[User text].

Economic Concerns:

California has experienced recurrent budget deficits; a $12 billion deficit was recorded in 2025 with projections of deficits above $20 billion annually.

Public sentiment surveys show that about 75% of Californians expect bad financial times ahead, with only 44% approving Newsom’s performance as governor, and 43% regarding the budget as a major problem[User text].

Cost of Living and Business Climate:

The cost of living has markedly increased, especially due to housing costs and a 14.5% rise in fast-food prices following a $20/hour minimum wage law, which reportedly led to the loss of 20,000 fast-food jobs[User text].

California has over 420,000 regulations, contributing to business complaints about tax and regulatory burdens; this environment is cited as a factor in businesses leaving the state[User text].

Social Issues:

Homelessness remains a significant crisis and is frequently cited among top public concerns.

Surveys reflect that 54% of Californians believe the state is moving in the wrong direction, with one-third financially worse off compared to the previous year and half citing hardships due to price increases[User text].

In summary, critics of Newsom point to persistently high unemployment relative to the national average, ongoing job losses in key sectors, significant budget shortfalls, rising living costs, regulatory burdens, and declining public confidence as negative indicators of his gubernatorial tenure. These data and sentiments are commonly used in political arguments about Newsom’s governance performance[User text][1][3][5].

References:

[1] What is the unemployment rate in California right now? - USAFacts

https://usafacts.org/answers/what-is-the-unemployment-rate/state/california/

[2] California's June Unemployment Rate Changed Slightly to 5.4 Percent

https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-june-2025/

[3] California Added 15,000 Jobs in July - EDD

https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-july-2025/

[4] 18 states had unemployment rates below national average in June ...

https://www.bls.gov/opub/ted/2025/18-states-had-unemployment-rates-below-national-average-in-june-2025.htm

[5] State Employment and Unemployment Summary - 2025 M07 Results

https://www.bls.gov/news.release/laus.nr0.htm

                       Talking points:

 Negative Statistics During Gavin Newsom’s Tenure as California Governor

High Unemployment and Job Loss

California’s unemployment rate rose from 5.3% to 6.1% in 2025, compared to the national average of 4.2%.

The state lost 54,800 jobs in Q1 2025, with a net loss of nearly 200,000 private sector jobs since 2023.

California accounts for 15.6% of the nation’s unemployed, despite having a smaller population share.

In July 2025, the unemployment rate was 5.5%, with over 386,000 people claiming unemployment benefits.

Some counties face severe unemployment, e.g., Imperial County at 18.9%, Los Angeles at 5.9%.

Economic Stagnation and Budget Troubles

California faces a $12 billion budget deficit in 2025, with annual deficits projected to exceed $20 billion.

75% of Californians expect financial “bad times” in the next year.

43% view the budget situation as a major problem; only 44% approve of Newsom’s job performance.

Rising Cost of Living and Regulatory Burden

Fast food prices rose 14.5% after a $20/hour minimum wage law, leading to 20,000 fast food job losses.

Housing costs contribute to a high cost of living, with California’s purchasing power dropping its GDP ranking from 4th to 11th globally when adjusted for living costs.

Over 420,000 regulations create a heavy burden, driving businesses to leave due to taxes and compliance costs.

Public Sentiment and Social Issues

54% of Californians believe the state is headed in the wrong direction, up since Newsom took office.

One in three Californians is financially worse off than last year; half report hardship from price increases.

Homelessness remains a major crisis and a top public concern alongside housing affordability.

Criticisms of Newsom’s Policies

Critics argue Newsom’s policies have led to persistent unemployment, job losses, budget shortfalls, and rising costs.

Declining public confidence and business exits are tied to regulatory and tax burdens, reflecting negatively on governance.

References: USAFacts, EDD (June & July 2025), BLS (2025), user-provided data.