California Unemployment Rate Drops as the state posted its lowest jobless rate since May 2024. New data released by the California Employment Development Department shows the statewide unemployment rate fell to 5.2% in June, marking a modest improvement in the labor market despite a slight decline in payroll jobs.
The Employment Development Department reported California lost 2,900 nonfarm payroll jobs during June after revising May’s employment figures downward by 18,700 jobs. The revision changed May’s estimated gain into a loss of 15,600 jobs. The unemployment rate is based on a federal survey of about 4,400 California households, while payroll employment data comes from a separate survey of roughly 80,000 businesses.
California Unemployment Rate Drops Despite Job Losses
State officials noted the lower unemployment rate reflects continued declines in the number of unemployed Californians. June marked the seventh straight month that unemployment fell, reducing the total number of unemployed residents by 70,000 during that period.
California’s unemployment rate also compared favorably with national trends. Since June 2025, the state’s unemployment rate declined by 0.3 percentage points while the national unemployment rate increased by 0.1 percentage points.
Although payroll employment slipped for a second consecutive month, California continued to account for nearly 15% of the nation’s job growth since the start of 2026. That remains well above the state’s typical share of total U.S. nonfarm employment.
Private Education and Health Services led all industries with a gain of 15,500 jobs. Growth was driven by private schools, health practitioner offices, and individual and family services, which recorded its sixth consecutive month of employment gains.
Leisure and Hospitality also posted a modest increase of 1,100 jobs. Arts, entertainment and recreation employers added positions, though restaurants and food service businesses experienced weaker-than-usual seasonal hiring.
Government recorded the largest monthly decline, losing 7,600 jobs. Most reductions occurred in state, county and local educational services as schools entered their summer recess. State officials said part of the decline reflected normal seasonal staffing changes.
The June employment figures are based on survey data collected during the week that included June 12. The Employment Development Department plans to release July labor market statistics on Aug. 21.
Residents seeking county employment data, industry trends or workforce resources can find additional information through the California Employment Development Department. National labor market information is also available from the U.S. Bureau of Labor Statistics.
While statewide employment trends do not always mirror conditions in individual San Gabriel Valley communities, local employers, job seekers and workforce agencies closely monitor these monthly reports for signs of economic momentum and future hiring activity.
