News Summary
California’s unemployment rate rose to 5.5% in July, the highest in the U.S., even as the state added 15,000 nonfarm jobs. The labor market remains complex, with mixed sector performance, particularly notable job losses in technology. The Bay Area saw modest job gains, but overall, economists express concern about the state’s reliance on tech and ongoing housing issues.
California experienced an uptick in its unemployment rate in July, reaching 5.5%, the highest in the nation. This represents a slight increase from June’s rate of 5.4%. Despite this rise in unemployment, the state added 15,000 nonfarm jobs during the month, contributing to 20.5% of the 73,000 total jobs gained across the United States.
The data, released by the Employment Development Department (EDD), reflects a complex labor market where job creation contrasts with increasing unemployment figures. The job gains in California follow a downward revision showing a job loss of 9,500 for June. Year-over-year, California has gained 83,800 jobs, primarily driven by growth in sectors such as private education, health services, and government.
In July, six out of eleven industry sectors in California reported job gains. However, not all sectors thrived. The professional and business services sector experienced consistent job losses, while the technology-focused information sector faced a significant decline, losing 1,000 jobs from June to July. Comparatively, the technology sector has seen a total of 12,400 job losses over the past year, reflecting challenges including pandemic-related adjustments and strategic scaling for artificial intelligence.
The overall number of unemployed individuals in California now stands at 1,088,600, marking an increase of 18,200 from June and up 31,800 from the previous year. The technology industry, a major employer in California, has reported over 10,000 job cuts in 2025, contributing significantly to the increase in unemployment rates.
The situation in specific regions also varies. Notably, the Bay Area saw an addition of 2,800 jobs in July, recovering from a prior loss of 1,700 jobs in June. However, it has lost 17,400 jobs year-to-date in 2025, highlighting an ongoing struggle despite recent job gains. Within the Bay Area in July, the East Bay gained 900 jobs, while the South Bay and the San Francisco-San Mateo region each added 800 jobs.
In terms of job losses, the statewide figure for tech jobs in July was approximately 6,700, with the Bay Area accounting for 2,500 of those losses. The healthcare sector stood out positively during this period, with gains of 4,800 jobs in the Bay Area alone. The East Bay added 2,100 jobs in healthcare, the South Bay contributed 1,600 jobs, and the San Francisco-San Mateo region saw an increase of 1,000 jobs in this sector.
On the other hand, other major industries within the Bay Area faced job reductions. Manufacturing experienced a loss of 1,100 jobs, retail dropped 800 jobs, and construction saw a decline of 100 jobs in July. Economists are raising alarms regarding the job market outlook in the Bay Area, attributing concerns to over-reliance on the technology sector and ongoing housing supply challenges. The labor market in the Bay Area has been characterized as being “on shaky ground,” despite the temporary job gains seen in July.
Overall, while California’s job market shows signs of resilience with job gains across various sectors, the rising unemployment rate and heavy reliance on technology underscore the challenges that remain in achieving a stable workforce.
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle
- Kron4 News
- Orange County Register
- Wikipedia: Unemployment in the United States
- Google Search: California unemployment rate
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
