News Summary
San Diego County has recorded a rise in its unemployment rate to 5.2%, the highest since September 2021. Factors such as seasonal job losses, particularly in education, and declines in the tech sector contribute to this unsettling trend. Despite the challenges faced, certain sectors like healthcare and private education are showing job growth, indicating a mixed employment landscape. The county’s labor force remains steady, but inflation and pressures in key industries continue to create economic uncertainty.
San Diego County’s unemployment rate has risen to 5.2% in July 2025, increasing from 4.9% in June. This marks the highest level of unemployment in the region since September 2021. In comparison, the statewide unemployment rate for California stood at 6.1%, while the national average increased to 4.6%.
A significant contributor to the job losses in July, which totaled 17,200 positions, is the absence of teachers during the summer break. The construction sector experienced a loss of 400 jobs, and the professional and business services sector saw a reduction of 900 positions from June to July. When adjusted for seasonality, San Diego’s unemployment rate would be approximately 4.8%.
The unemployment level has been on the rise since March, reflecting a concerning trend within the county’s workforce. Year-over-year analysis shows that the professional and business services sector alone has lost 6,800 jobs, with notable declines occurring in the technology and biotech fields. Factors contributing to this decline include a slowdown in hiring within the tech industry, exacerbated by job displacement due to advancements in artificial intelligence.
San Diego’s labor force comprised approximately 1.67 million individuals in July 2025, growing by 1% compared to the previous year. However, total nonfarm employment within the county decreased from 1,573,100 to 1,557,600, resulting in a loss of 15,500 jobs over the course of a single month. The major contributor to this drop was the government sector, which saw the highest number of losses at 17,200 jobs, primarily due to seasonal fluctuations.
Despite these declines, certain sectors managed to show growth. Private education and health services added 14,400 jobs over the past year, particularly in healthcare and social assistance sectors, which saw an increase of 13,300 jobs. The fluctuating job market highlights that while some areas are struggling, others are experiencing job growth, creating a mixed employment landscape in the region.
San Diego’s inflation rate is currently reported as the highest nationwide at 4%, which is also the highest level observed since 2023. This inflationary pressure has raised concerns regarding job availability and wage stability, which may further impact the region’s overall employment rate.
The demand for labor remains, particularly in the hospitality sector, where there are anecdotal reports of a shortage of chefs. Job postings for various roles reveal a significant demand for retail salespersons, with 1,579 job listings, and registered nurses with 1,490 postings. Positions also remain available in computer occupations, with 896 openings.
Major employers seeking to fill positions in the current labor market include UC San Diego, Sharp Healthcare, Qualcomm, Scripps Health, Starbucks, General Atomics, and Apple. Even with the existing unemployment figures, these companies are actively looking for talent, which underscores the complexity of the current job market.
Looking at a broader context, San Diego County’s unadjusted jobless rate of 5.2% remains lower than Los Angeles County’s rate of 6.4%, while adjacent counties such as Orange, San Francisco, and Santa Clara report lower rates at 4.8% and 4.4%, respectively.
In summary, while San Diego County faces a rising unemployment rate and significant job losses in several sectors, pockets of growth remain. Full-time and part-time opportunities continue to be available, suggesting a need for adaptability in the local labor force to navigate these economic challenges.
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Additional Resources
- Fox 5 San Diego
- San Diego Union Tribune
- Times of San Diego
- CoStar
- San Diego Union Tribune
- Wikipedia: Unemployment in the United States
- Google Search: unemployment rate California
- Google Scholar: California unemployment statistics
- Encyclopedia Britannica: Unemployment
- Google News: San Diego unemployment
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego 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 Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
