News Summary
California’s unemployment rate climbed to 5.5% in July, the highest in the country, despite adding 15,000 nonfarm jobs. The state’s job market faces ongoing challenges, with significant layoffs in technology and a decline in the professional services sector. Out of 11 industries, six showed job gains, but overall concerns about the job market’s health persist. Economists are wary of the heavy reliance on the tech industry and ongoing housing supply issues.
California has recorded an unemployment rate of 5.5% for July, marking it as the highest rate in the nation. This reflects a slight increase from the previous month, where the rate stood at 5.4%. Despite adding 15,000 nonfarm jobs during the same month, the state is facing challenges in its job market.
According to data released by the Employment Development Department (EDD), the job growth in July represented 20.5% of the 73,000 total jobs created nationally. However, it came on the heels of a downward revision of the previous month’s figures, where California experienced a loss of 9,500 jobs. In a year-over-year comparison, the state has added 83,800 jobs with notable gains in sectors such as private education, health services, and government.
Out of the eleven industry sectors in California, six showed job gains in July. Noteworthy is the decline in the professional and business services sector, which has consistently reported losses through 2025. Additionally, the information sector, heavily influenced by technology, suffered a loss of 1,000 jobs from June to July and a total decline of 12,400 jobs compared to July 2024.
As of July, California has 1,088,600 individuals without jobs, representing an increase of 18,200 since June and a rise of 31,800 from the same period last year. The significant layoffs in the state’s technology industry have been largely attributed to adjustments following the pandemic and restructuring aimed at enhancing artificial intelligence capabilities, contributing to over 10,000 job cuts recorded in 2025.
Regional Job Market Performance
The Bay Area specifically added 2,800 jobs in July, recovering from a loss of 1,700 jobs the prior month. However, when evaluated year-to-date, the region has shed 17,400 jobs in 2025. The East Bay saw a net gain of 900 jobs, while both the South Bay and the San Francisco-San Mateo region added 800 jobs each in July.
Despite these gains, there were significant job losses within technology, with 6,700 tech jobs eliminated statewide, including 2,500 in the Bay Area. On the other hand, the health care sector in the Bay Area reported an addition of 4,800 new jobs during July, with notable contributions across multiple regions: 2,100 jobs in the East Bay, 1,600 in the South Bay, and 1,000 in the San Francisco-San Mateo area.
Economic Concerns
Other industries in the Bay Area reported job cuts in July, including manufacturing with a loss of 1,100 jobs, retail which lost 800 jobs, and construction suffering a decline of 100 jobs. Economists have voiced concerns regarding the Bay Area’s labor market outlook, emphasizing the region’s heavy reliance on the technology sector and ongoing issues with housing supply. The overall health of the Bay Area job market has been described as “on shaky ground,” despite the recent job gains.
The fluctuating employment figures underscore a complex landscape in California’s economy. The combination of job gains and rising unemployment illustrates the ongoing challenges facing workers and businesses alike. The next job market assessment will be critical in understanding the long-term implications of these trends.
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle: Unemployment Rate Rises in California
- Wikipedia: Unemployment
- Kron4: California Unemployment Rate Highest in the Nation
- Google Search: California Unemployment Rate
- Orange County Register: Southern California Unemployment Hits 6.1%
- Google Scholar: California Job Market
- Silicon Valley: Bay Area Jobs and Tech Economy
- Encyclopedia Britannica: California Economy
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.
