NAICS 51

Information in California: 2026 Market Risk Report

Entry risk 56.6 (High), ranked #51 of 51 states. 31,052 establishments, 537,780 jobs.

Entry Risk Assessment

Entry Risk Score 56.6
Low 0-30
Moderate 30-42
Elevated 42-55
High 55+
High Risk

ⓘ Lower is better. Relative to national information average.

Despite ranking top 5 in growth momentum, California presents structural entry friction. Wage pressure (94.9) and an overall risk score of 56.6 indicate that top-line growth may not translate to favorable unit economics for new establishments.

5-Year Firm Retention
3.9%
Percentile within industry
Rank #50 of 51 states
Growth Momentum
↑ 69.4
Scale of 0-100
Rank #2 of 51 states
Establishment Density
9.7
vs. national average
Rank #15 of 51 states
Market Volatility
25.1
Lower is more stable
Wage Pressure Index
94.9
Labor cost pressure

31,052 Establishments in California

31,052
Establishments
-2.1% YoY
537,780
Total Employment
-3.8% YoY
$287,317
Average Annual Wage
+19.2% YoY

California vs National Information Average

How California's information market compares to the national average across all 51 states.

Metric CA National Difference
Entry Risk Score 56.6 43.6 +13.0
5-Year Retention 3.9% 51.0% -47.1
Growth Momentum 69.4 34.6 +34.8
Market Volatility 25.1 24.1 +1.0
Establishment Density 9.7 18.3 -8.6
Wage Pressure 94.9 41.8 +53.1

Green = favorable vs national average. Red = less favorable. Metrics are relative within information only.

California Ranks #51 of 51 for Information

California ranks #51 out of 51 states for information market entry conditions.

Information Entry Risk by State

Rank State Risk Score Classification
#1 North Dakota 28.8 low
#2 Arkansas 30.0 moderate
#3 Alaska 31.5 moderate
#4 Pennsylvania 31.8 moderate
#5 Alabama 32.1 moderate
#51 California You 56.6 high
Entry Risk by State Alaska — 31.5 · #3 Alabama — 32.1 · #5 Arkansas — 30.0 · #2 Arizona — 49.2 · #41 California — 56.6 · #51 Colorado — 46.7 · #31 Connecticut — 54.5 · #47 District of Columbia — 51.0 · #43 Delaware — 48.0 · #36 Florida — 46.5 · #30 Georgia — 48.9 · #39 Hawaii — 55.2 · #48 Iowa — 38.3 · #15 Idaho — 43.8 · #24 Illinois — 48.5 · #38 Indiana — 40.2 · #19 Kansas — 37.6 · #12 Kentucky — 32.6 · #6 Louisiana — 51.7 · #44 Massachusetts — 40.2 · #17 Maryland — 48.9 · #40 Maine — 44.1 · #25 Michigan — 47.2 · #32 Minnesota — 42.6 · #22 Missouri — 36.8 · #10 Mississippi — 43.1 · #23 Montana — 33.2 · #7 North Carolina — 45.3 · #28 North Dakota — 28.8 · #1 Nebraska — 37.8 · #13 New Hampshire — 47.8 · #35 New Jersey — 52.0 · #46 New Mexico — 47.7 · #34 Nevada — 56.3 · #50 New York — 50.5 · #42 Ohio — 44.4 · #26 Oklahoma — 40.2 · #18 Oregon — 52.0 · #45 Pennsylvania — 31.8 · #4 Rhode Island — 39.9 · #16 South Carolina — 46.3 · #29 South Dakota — 33.6 · #8 Tennessee — 48.1 · #37 Texas — 41.5 · #20 Utah — 47.4 · #33 Virginia — 36.2 · #9 Vermont — 45.1 · #27 Washington — 55.7 · #49 Wisconsin — 38.1 · #14 West Virginia — 37.3 · #11 Wyoming — 42.2 · #21
Low Moderate Elevated High

Tap a state to view details

About Entry Risk Score: A weighted composite of firm retention, growth momentum, market volatility, establishment density, and wage pressure. Lower scores indicate more favorable conditions. Read full methodology →

Data Sources

Data period: 2024. Last updated: February 2026. Next refresh expected: Q2 2026 (BLS QCEW update).

Compare to Another State

How does California stack up against other states for information?

Select a state above to see the comparison

Information in Neighboring States

How California's information market compares to bordering states.

Arizona 49.2 #41/51 Oregon 52.0 #45/51 Nevada 56.3 #50/51

Other Industries in California

Construction → Healthcare and Social Assistance → Retail Trade → Accommodation and Food Services → Professional, Scientific, and Technical Services → Finance and Insurance → Real Estate and Rental and Leasing → Administrative and Support Services → Other Services →