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California Job Losses Deepen in June as Unemployment Hits 5.4%

Persistent tech layoffs combined with service-sector cuts are weighing on the state’s economic recovery.

James, a downtown San Francisco office worker, enjoys a beverage at The Cove. California’s unemployment rate rose, slightly, in June.

Overview

  • California shed 6,100 jobs in June, pushing the state unemployment rate up to 5.4%, matching Nevada for the nation’s highest.
  • Bay Area employers cut 6,800 positions, marking the region’s second consecutive month of declines across South Bay, East Bay and San FranciscoSan Mateo.
  • San Diego County’s jobless rate jumped to 4.9% as nonfarm employment slipped by 900 positions and professional and business services lost 2,800 roles.
  • Tech sector layoffs—from companies such as Scale AI, Microsoft and Intel—continued to strain California’s largest metro economies.
  • Healthcare and government sectors recorded modest job gains in June, but most other industries, including manufacturing and information, posted declines.