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This fact brief was originally published as an experiment to test the concepts behind fact briefs.

Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.

FACT BRIEF

Is California’s economy showing signs of strong recovery alongside lingering impacts from the coronavirus?

Tuesday, July 13, 2021

By Lisa Freedland

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YES

California’s economy is recovering from pandemic closures that were more severe than in many other states. In the calendar first quarter the state grew at 6.3%, only slightly off the national pace of 6.4%.

Travel restrictions hit the state hard; with international arrivals still restricted, recovery is expected to be lag in the leisure and hospitality sectors. In May 2021, the state’s unemployment rate, at 7.9%, was the third-highest in the U.S. The state legislature in May noted reports that up to 30% of the state’s restaurants closed permanently.

Offsetting that, the state benefited from the strength of its technology industry, with highly-paid workers largely able to continue working from home. In the four quarters ending March 31, “state wages and salaries were up 5.9%, the nation’s just 4%,” the state legislature analyst’s office reported. Healthy incomes and tax receipts have resulted in a windfall for the state government that the legislative analyst estimates at $38 billion.

This fact brief is responsive to conversations such as this one.

Sources

Bureau of Economic Analysis Q1 2021 gross domestic product by state

University of New Hampshire COVID-19 Economic Crisis: By State

California State Senate Briefing paper: Impacts and implications of the COVID-19 pandemic on the state’s restaurant industry

California Legislative Analyst’s Office Q1 2021 personal income report

California Legislative Analyst’s Office The 2021-22 budget (surplus estimate)

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Gigafact

Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.

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About fact briefs published on Gigafact

Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.