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California Job Loss Stretches to Four Months With Nation’s Highest Unemployment

The preliminary September report arrived late after the federal shutdown.

Overview

  • California shed 4,500 jobs in September and its unemployment rate rose to 5.6%, above the U.S. rate of 4.4% and highest among states.
  • The Bay Area eked out a 500-job gain, with the South Bay down 700, the East Bay up 700, San FranciscoSan Mateo up 300, and mixed results across North Bay counties.
  • Losses were concentrated in professional and business services (down 10,400) and trade and transportation (down 8,700), while health care added 13,100 jobs.
  • The figures are preliminary federal estimates released after a 43-day data delay, with California’s Employment Development Department set to issue detailed county data next.
  • Analysts tie part of the weakness to ongoing tech layoffs at companies such as Google, Meta, and Microsoft, even as the U.S. added 119,000 jobs in September.