Mary Heim is head of Demographics Research at the Department of Finance. She says the growth is not from people flocking to the golden state.
"In fact what's happening is a lot of people are hunkering down and just not moving."
Heim says the recession has a lot to do with that. It's expensive to move, and jobs are still sparse nationwide.
"I think that as long as the economy stays down population growth will stay at a relatively low level, but I would anticipate at some point they'll both turn around."
Heim says according to the research, even many illegal immigrants are leaving the state. She says 80 percent of the population increase can be attributed to births this year.