Business Activity
Modesto Economy Adapted through COVID19 and is Moving Forward
Modesto’s economy experienced the impacts of COVID19 and public-health based restrictions on business activity. By the end of 2021, Modesto had recovered much of its employment, matching the State of California as a whole on unemployment. Rising interest rates beginning in the latter part of 2022 have been associated with widespread increases in unemployment.
Despite a dips in the Spring of 2021 and 2024 which coincide with annual renewal, the total number of active Modesto business licenses has steadily increased.
Industry Characteristics
Modesto’s economic heart is manufacturing with a concentration of food and beverage processing and related industries. Modesto is a regional center for healthcare and social services, reflected in its above-average job counts. As established industries evolve and new industries move in, Modesto’s job base is gaining technical skills.
When looking up Modesto economic data, most resources report based on the Modesto Metropolitan Statistical Area (MSA) which includes all of Stanislaus County. The economic profile of Modesto is more industrial, whereas the profile of Stanislaus County overall is more influenced by Agricultural and related activities.
Courtesy Opportunity Stanislaus
Additional Resources
Stanislaus County Comprehensive Economic Development Strategy 2023 (CEDS)
Modesto economic overview, 2023, Opportunity Stanislaus
Modesto Economy at a Glance, Western Information Office of the Bureau of Labor Statistics (Modesto MSA/Stanislaus County)
Milken Institute Best Performing Cities Reports - the Best Performing Cities report uses consistent metrics from year to year with an emphasis on job creation and income. Modesto frequently ranks above its size in this comparison of the nation’s top 200 cities, ranking as high as 33 in recent years. Modesto ranks #74 in the 2022 report.
California Employment Development Department large employers in Stanislaus County