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Independent, objective, nonpartisan research
Blog Post · January 21, 2025

Six Fast Facts on Californians’ Economic Mood

photo - Woman Shopping for Clothes in Los Angeles

For several years PPIC has asked Californians whether they believe that a person can work hard to get ahead financially—and for years, fewer and fewer residents have answered yes. Today, just one third of Californians still believe the American Dream is possible, while over half now feel that the dream has collapsed, according to the December PPIC Statewide Survey. The issues lurking behind this discontent are not new, and the numbers behind the issues show that while Californians are frustrated for themselves, they’re also looking out for each other.

1. Californians are anxious for their children. Most Californians (70%) fear that the financial future for today’s children may be bleak, an anxiety that has built up over ten years: in 2014 just over half of Californians (55%) shared this worry. The concern may be related to the half million disconnected young Californians (16–24) who are not in school, employed, or seeking a job. Further feeding this anxiety, most parents worry over saving enough for their child’s college education.

2. Californians worry about having money for food, bills, and emergencies. While most Californians are somewhat satisfied with their own personal finances, close to a third (29%)—including half of lower-income adults—are making hard choices to make ends meet, cutting back on meals or food to save money. Others have had their hours cut at work (22%) or could not pay a bill (21%). If a $1,000 emergency expense came up, about one in five adults would find it very difficult or nearly impossible to pay.

3. Californians are stressed about housing. About a fifth of adults say they struggled to pay rent or their mortgage (22%) this year. For many Californians, high housing costs have become the locus of their financial stresses: a greater share of people are renting, and renters often pay over half their income for housing.

4. Californians fear that the good jobs are slipping away. More than 80% of adult employed Californians believe they have at least a fair amount of job security. At the same time, Californians across the state complain that jobs that pay well are beginning to dwindle. A tight labor market had pushed up wages—but not in all sectors, and inflation has squeezed away gains.

5. Californians support their fellow workers. On the bright side, Californians of all stripes believe in the power of workers. Overwhelming majorities of adults (70%) and likely voters (75%) approve of labor unions, with majorities of Democrats (87%), independents (68%), and Republicans (57%) approving. However, voters rejected a November measure to raise the state minimum wage.

6. Californians want the state to help train workers and to help workers care for their kids. Californians want action from the Golden State that supports workers. About eight in 10 adults favor greater funding for job training programs so that more workers have the skills they need for today’s jobs. About three quarters support the state spending more to make child care programs available to more lower-income working parents.

Even as state leaders prepare for the changes that will arrive with the incoming administration in areas ranging from climate to immigration, Californians have a fiscal wish list for the new president. Half of Californians expect bad economic times in the next yearcompared to 60% in October—and they expect the incoming president to do something about it. Although inflation did ease in the latter part of the year, Californians want Trump to prioritize bringing down high costs and inflation and to build an economy that gives every American a chance to succeed.

Topics

American dream California State Legislature child care Donald Trump Economy Housing inflation Jobs and Employment labor unions Political Landscape Poverty & Inequality renters Statewide Survey voters workers Workforce and Training