The Center for Jobs and the Economy has released our initial analysis of the June employment and labor force data. The EDD and BLS releases are again on different schedules. Data for the other states will be addressed in our Full Jobs Report after it is released by Bureau of Labor Statistics next week. For additional information and data about the California economy visit www.centerforjobs.org/ca.
Nonfarm Jobs Dip 2,900
Nonfarm wage and salary jobs (seasonally adjusted) fell 2,900 in the preliminary estimate for June. The preliminary gain of 3,100 in May was revised to a loss of 15,600, posting the 4th out of the past 5 months where the change in jobs was zero or below. California has seen a net gain of only 200 nonfarm jobs since January.
By industry, the preliminary June numbers continue to mask the jobs retrenchment in most private industries. While the state’s job gains over the past 12 months are equivalent to 14.9% of total US growth in this period, that outcome is solely the result of growth in Health Care & Social Assistance which added 135,400 jobs predominately as the result of public expenditures, while Other Private industries combined grew by only 3,900.
Although the June data is not yet available, Department of Health Services reports through May 2026 indicate that part time, minimum wage In Home Supportive Service (IHSS) workers funded as a Medi-Cal benefit provided nearly half of those 135,400 jobs.
California Labor Force
California’s seasonally adjusted unemployment rate notched down 0.1 percentage point to 5.2% as the labor force fell for the 7th month in a row and as unemployed workers left the workforce rather than securing earned income employment. The total number of employed fell 34,800 in the preliminary numbers, the 6th loss in a row and a combined loss of 189,600 since last December. The number of unemployed remained above the 1 million mark beginning in January 2024.
California Unemployment
California’s reported unemployment rate (seasonally adjusted) improved to 5.2%, but did so as the result of continued declines in the labor force. The US posted a comparable dip but also as the result of a drop in the labor force.
The Latino unemployment rate saw the same improvement to 5.7%, but remained higher than the comparable rates for the state (0.1 point higher at 5.2%), Whites (level at 5.0%), and Asians (0.1 point higher at 4.1%). Blacks retained the highest unemployment rate at 8.5% (0.5 point lower).
The demographic data, which is taken from a 12-month moving average of the Current Population Survey data, is not directly comparable to the headline monthly data which is based on the same survey data but which is estimated using labor force models. The demographic data, however, is useful for showing the relative labor force status of these groups.
Employment again fell, by 34,800 (seasonally adjusted) in May, while US employment fell by 507,000.
California unemployment fell 13,800, while US unemployment fell by 213,000. Even though there has been marginal improvement in the numbers so far this year, California unemployment has been above 1 million every month since January 2024, the highest levels since the pandemic period in 2021. Rather than people being able to find jobs, the year-to-date 69,100 improvement in the unemployment numbers has come as workers have left the labor force. Combined with a year-to-date drop of 189,600 in the number of employed workers, the labor force has fallen by 1.3%, further diminishing the potential for future jobs growth by reducing the available labor supply.
Nonfarm Jobs
Nonfarm wage and salary jobs (seasonally adjusted) in the preliminary estimate fell by 2,900, resulting in a total gain of 106,900 jobs for the year but only 200 since January.
For the US as a whole, nonfarm jobs rose 57,000 in June, while the previous two months were revised down by a total of 105,000. The US showed a gain of 506,000 for the year.
Counties with Double-Digit Unemployment
The number of counties with an unemployment rate (not seasonally adjusted) at 10% or above notched up to 3. The unadjusted rates ranged from 3.6% in San Mateo to 17.6% in Imperial.
In the chart, counties with rates higher than the state average are coded in red.
