California's life sciences industry generated $394 billion in economic output in 2025, according to a new report from industry group BIOCOM California. The figure captures the sector's broader economic footprint, extending beyond direct employer contributions to include indirect and induced impacts across the state.
Despite the massive output, employment contracted across all three of California's major life sciences hubs last year. The San Francisco Bay Area, San Diego, and the Los Angeles/Orange County region each recorded declines in industry headcount, though specific job loss numbers were not disclosed in the report.
The $394 billion figure is drawn from a 2025 assessment by BIOCOM California, which represents over 1,400 life sciences organizations. Direct employment reached 406,505 people, but the industry's total economic impact is more than three times that payroll base.
The conflicting trends — rising economic output alongside shrinking employment — highlight a period of restructuring rather than outright decline. Productivity gains or a shift toward higher-value activities may explain why output grew even as headcount fell.
BIOCOM California did not provide a breakdown of output by region or company, and the job losses were characterized as decreases rather than precise percentages. The group's methodology for calculating economic output was not detailed in the brief.