News Summary
California’s unemployment rate has increased to 5.5% in July, the highest in the nation, despite adding 15,000 jobs. The state faces job losses, particularly in tech, with 1,088,600 people unemployed. Key sectors like health care show growth, revealing resilience, while the overall job market remains precarious, especially in the Bay Area, where tech layoffs have impacted employment significantly.
California’s unemployment rate has reached 5.5% as of July, marking it as the highest rate in the nation. This figure comes as a slight increase from June’s rate of 5.4%. Despite adding 15,000 nonfarm jobs in July, the state continues to experience significant job losses in key sectors, particularly in technology.
The Employment Development Department (EDD) reported that California accounted for 20.5% of the 73,000 jobs gained nationally in July. However, this comes on the heels of a downward revision indicating a loss of 9,500 jobs in June. Year-over-year, California’s job market has seen a net gain of 83,800 jobs, with notable contributions from sectors such as private education, health services, and government. Six out of the eleven industry sectors added jobs in July, giving a glimpse of resilience in some areas of the state’s economy.
Despite these positive indicators, the data reflects an underlying challenge in the job market. The professional and business services sector has been a consistent weak point, showing ongoing job losses. Additionally, the information sector, which is dependent on technological developments, lost 1,000 jobs from June to July and has seen a total decline of 12,400 jobs compared to the previous year.
As of July, 1,088,600 individuals were counted as unemployed in California, a rise of 18,200 from June and an increase of 31,800 compared to July 2024. Much of these losses can be attributed to significant layoffs in the technology industry, particularly as companies adjust operations in the wake of the pandemic and transition towards artificial intelligence solutions. In total, over 10,000 job cuts have been reported within the tech sector since the start of 2025.
Regionally, the Bay Area did see a gain of 2,800 jobs in July, recovering from a loss of 1,700 jobs in June. Nevertheless, it still stands at a job loss of 17,400 for the year to date in 2025. The East Bay contributed 900 additional jobs, while both the South Bay and the San Francisco-San Mateo area added 800 jobs each during the same month.
However, the tech sector’s struggles have been pronounced, with California experiencing a total of 6,700 job losses in the field during July. The Bay Area alone accounted for 2,500 of these job cuts. In stark contrast, the health care sector in the Bay Area added 4,800 jobs, characterized by strong gains across various regions—2,100 in the East Bay, 1,600 in the South Bay, and 1,000 in San Francisco-San Mateo.
Other sectors in the Bay Area did not fare as well; construction lost 100 jobs, while the retail and manufacturing industries saw declines of 800 and 1,100 jobs, respectively, in July. Economists are increasingly concerned about the job market outlook in the Bay Area, pointing to the heavy reliance on the tech sector and ongoing issues surrounding housing supply. The labor market in this region has been described as being “on shaky ground,” indicating a precarious situation despite the job recoveries seen in July.
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle
- Kron4 News
- Orange County Register
- Victor Valley Daily Press
- North Bay Business Journal
- Wikipedia: Unemployment in the United States
- Google Search: California unemployment rate
- Google Scholar: California unemployment rate
- Encyclopedia Britannica: Unemployment
- Google News: California unemployment rate
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, 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 Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
