California's economic growth expected to continue, but slowly and with few jobs gains

California's economy is growing faster than the U.S. average, driven by AI investments, aerospace, and defense spending. However, job growth remains weak, with only modest payroll increases and a shrinking labor force. High-tech sectors see venture capital surges, but layoffs occur in entertainment and major tech firms. Growth is expected to pick up in 2027-2028, with unemployment projected to decline and personal income to rise gradually.