Particle.news
Download on the App Store
7 ARTICLES
·
last wk.

California’s Unemployment Rate Climbs to 5.5% as Tech Cutbacks and San Diego Layoffs Bite

Seasonal government payroll cuts in San Diego County coincided with tech and professional services layoffs that drove California’s unemployment to an eight-month high

Construction added the most workers of any sector in July in Colorado, driving a gain of 3,700 jobs last month. Pictured here are workers building a group of homes at a subdivision near 86th Avenue in west Greeley at the end of last year. (Jim Rydbom/Staff Photographer)
A custodial workers vacuums inside an office building in San Francisco, in 2022. California’s unemployment numbers continue to rise, partially because of a tough tech sector.
Employment Development Department headquarters at the State Capitol complex in Sacramento. EDD main office. Google Maps
Image

Overview

  • California’s unemployment rate rose to 5.5% in July, marking the highest state-level jobless rate nationally and a 0.1-point increase from June.
  • Despite the uptick in unemployment, California added a net 15,000 payroll jobs in July, highlighting a divergence between household and establishment survey measures.
  • San Diego County saw a 15,500 drop in nonfarm employment last month, led by 17,200 government-sector job cuts primarily due to summer recess.
  • July losses were concentrated in tech-oriented fields, with professional and business services shedding 7,100 jobs and the information sector losing 1,000, while manufacturing remains down by 32,500 year over year.
  • Health care and private education contributed the most gains statewide, adding 23,100 jobs, as experts attribute tech slumps to AI automation, pandemic overhiring reversals and public-sector hiring freezes.