Sacramento, CA — California continues to grapple with high unemployment, holding the position as the state with America’s second-highest unemployment rate, according to the latest report from the U.S. Bureau of Labor Statistics.
In July, California’s unemployment rate was 5.5%, just behind Washington, D.C., which posted 6%, the bureau noted. The Golden State has remained in the second-worst spot for consecutive months, with 5.4% unemployment in June. The total number of people without jobs in California increased slightly to 1,088,641 in July, up from 1,070,414 in June.
Job Growth Amid High Unemployment
Despite the uptick in unemployment, California added 15,000 nonfarm, payroll jobs across 11 major industries in July, according to the Employment Development Department (EDD). Overall employment in these sectors reached 18,022,700, showing modest growth in the state’s labor market.
Six industries posted gains last month. The largest increase occurred in private education and health services, with 23,100 new positions in health care and social assistance and an additional 12,600 jobs in ambulatory health care services. These gains reflect California’s ongoing demand for healthcare professionals and educators.
In the government sector, employment growth was modest. Local government added 7,200 jobs, while state positions increased by 400. The federal workforce saw a slight decline, shedding 400 jobs in July.
Sector Losses and Challenges
Not all industries experienced growth. The professional and business services category, which includes specialized design, computer design, and scientific research and development, recorded the largest month-over-month loss. This sector has faced consistent declines each month in 2025, indicating potential structural shifts in California’s professional job market.
Despite these challenges, California’s labor market has made significant gains over the longer term. Since April 2020, the state has added a total of 3,102,900 jobs, averaging 49,252 new positions per month across various sectors. This demonstrates ongoing recovery efforts following the pandemic-induced economic downturn.
Outlook for California Workers
The employment trends reflect a mixed economic picture. On one hand, the state continues to struggle with high unemployment, while on the other, sectors such as health care, education, and local government are expanding. Policymakers and economic analysts emphasize the importance of supporting growing industries while addressing the persistent gaps in professional and business services.
The EDD’s report highlights the need for California to continue strategic workforce development programs, particularly targeting industries with declining employment, to ensure sustainable job growth and broader economic stability.
For more details on California’s employment trends and industry-specific changes, read the full report at The Center Square.
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