Economy of California
The economy of California is a dominant
force in the economy of the United States,
with California paying more to the federal
system than it receives in direct monetary be-
nefits.[1]
The San Francisco Bay Bridge.
Economic regions
California is home to several significant eco-
nomic regions. These include:
• Hollywood (entertainment)
• The California Central Valley (agriculture)
• Silicon Valley (computers and high tech)
• Wine producing regions such as the Napa
Valley, Sonoma Valley and Southern
California’s Santa Barbara, and Paso
Robles areas
Sectors
In 2002, the U.S. government adopted an up-
dated system of classifying economic activit-
ies (called the North America Industry Classi-
fication System, or NAICS), to better reflect
today’s economy.[2]
In terms of jobs, the largest sectors in
California’s economy as of 2006 are:
• Trade, Transportation and Utilities:
Wholesale and Retail, Import-Export
businesses, Warehousing, etc.
• Government
• Professional and Business Services:
Management of Companies and
Enterprises; Legal, Scientific and
Technical Services; Administrative and
Support Services
• Education, Health and Other services
• Leisure and Hospitality: Tourism, Arts,
Entertainment, Recreation, Food Services
• Manufacturing: Computers and
Electronics, Aerospace, Apparel, Oil, other
• Financial Services: Finance, Insurance,
Real Estate
• Construction
• Information: Motion Picture Production,
Broadcasting, Publishing, Internet
businesses and Telecommunications
The Hollywood sign is the most well-known
symbol of California’s huge entertainment
industry.
• Agriculture and Mining
In terms of output, the largest sectors are:
• Financial Services
• Trade, Transportation and Utilities
• Education, Health and Other services
• Government
• Manufacturing
• Professional and Business Services
• Information
• Leisure and Hospitality
• Construction
• Agriculture and Mining
International trade and tourism
California has historically derived significant
revenue from international trade and tour-
is