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California’s economy stagnates amid homelessness, housing shortages, and a growing budget deficit, with unemployment at 5.5%—the highest in the nation—despite efforts to resist federal policies.
California’s persistent challenges—homelessness, housing shortages, high living costs, stagnant job growth, underperforming schools, and a multi-billion-dollar budget deficit—stem from long-standing structural issues predating President Trump’s policies.
Despite Governor Gavin Newsom’s 2018 election, the state’s economy remains sluggish, with a 5.5% unemployment rate—the highest in the nation—and job losses in July and August 2025.
Employment growth has failed to keep pace with labor force expansion, and housing and fiscal crises remain unresolved.
While state leaders emphasize resistance to federal actions, these national conflicts distract from deeper, ongoing problems that threaten California’s future prosperity.
La economía de California se estanca en medio de las personas sin hogar, la escasez de viviendas y un creciente déficit presupuestario, con un desempleo del 5,5%, el más alto de la nación, a pesar de los esfuerzos por resistir las políticas federales.