California’s unemployment rate dipped slightly in December 2025, offering a modest sign of stability as statewide job losses continued at a slower pace. New figures released by the California Employment Development Department show the unemployment rate at 5.5 percent, down from a revised 5.6 percent in November.
The decline matched the national month-to-month change, though California’s rate remained unchanged from a year earlier. By contrast, the national unemployment rate rose 0.3 percentage points over the year. State employers shed an estimated 1,700 nonfarm payroll jobs in December, according to the department.
The data comes from two separate federal surveys. Unemployment figures are based on a household survey of roughly 4,400 California residents, while job totals reflect responses from about 80,000 businesses statewide.
Job Losses Mark Turning Point
December marked a notable shift in the state’s labor market. California recorded a year-over-year loss of 11,200 nonfarm jobs, the first annual decline since March 2021. State officials also revised November employment figures downward, reducing the previously reported gain by 2,000 jobs to a net increase of 30,500.
The total number of unemployed Californians declined for the second straight month after rising steadily from April through September 2025. That reversal helped push the unemployment rate lower despite overall job losses.
Five of the state’s 11 major industry sectors added jobs during the month. Private Education and Health Services led gains with 5,000 new positions, extending its growth streak to 47 consecutive months. Most of those gains came from hospitals and social assistance providers, reflecting continued demand tied to California’s aging population.
Government Hiring Offsets Declines
Government employment rose by 4,500 jobs in December, the second-largest monthly increase among all sectors. Local government accounted for 3,900 of those jobs, while state government educational services posted above-average gains.
Construction recorded the steepest monthly decline, losing 5,000 jobs statewide. The department attributed much of that drop to unusually wet weather during the survey period, which affected utility system construction and building finishing contractors.
Other sectors showed mixed results, with gains in some service industries offset by losses tied to seasonal and weather-related factors.
What the Numbers Mean Locally
While the release focuses on statewide totals, the trends often carry implications for communities across the San Gabriel Valley. Education, health care, and government remain key sources of employment for residents in cities such as El Monte, Baldwin Park, and Rosemead. Construction slowdowns tied to weather can also affect local contractors and related businesses.
The department cautioned that December data reflects conditions during the survey week that included December 12. The release date for January 2026 figures has not been finalized while the state awaits updated information from the U.S. Department of Labor’s Bureau of Labor Statistics.
More detailed local data and industry breakdowns are available on the Employment Development Department website at https://www.edd.ca.gov.
