San Diego County’s Unemployment Rate Climbs Higher

News Summary

San Diego County’s unemployment rate has increased to 4.9%, up from 4% in the previous month. The rise, which surpasses last year’s rate, comes amid a loss of 900 jobs, particularly in high-paying sectors. Economists point to economic uncertainties such as tariffs and inflation as contributing factors. While industries like construction and leisure saw job growth, overall employment challenges persist, raising concerns about regional economic stability.

San Diego, California – San Diego County’s unemployment rate rose to 4.9% in June 2025, marking an increase from 4% in May and surpassing the 4.4% rate recorded in June of the previous year. This upward trend is drawing attention amid concerns over regional economic stability, as the county saw a net loss of 900 jobs from May to June.

The largest job losses were concentrated in the high-paying professional and business services sector, private education and health, and the government sector. Notably, professional and business services experienced a decrease of 2,800 jobs, while the government sector shed around 1,100 jobs, largely due to seasonal reductions as summer recess began.

Economists attribute the spike in unemployment to a combination of current economic uncertainties, including tariffs, immigration policies, and persistent inflation. The increase of 0.9% from May to June is significantly higher than the median increase of 0.6% typically observed over the past decade. Furthermore, this June 2025 figure represents the largest June increase on record since 1990.

Additionally, the seasonally adjusted unemployment rate also saw a rise, moving from 4.6% in May to 4.7% in June. These figures reflect a cautious climate among employers, particularly in manufacturing and professional services where there is hesitance to hire new staff.

While the overall job market encountered setbacks during this period, there were some positive signals. The construction sector added 1,400 jobs and the leisure and hospitality industry saw an increase of 2,300 jobs, indicating areas of growth even amidst the backdrop of job losses.

Between June 2024 and June 2025, overall nonfarm employment in San Diego County grew by 14,400 jobs, with a notable gain of 12,600 jobs in private education and health services. Over 90% of these jobs were attributed to the healthcare and social assistance sectors. However, this growth is contrasted by declines in manufacturing and professional services, which saw job losses of 4,500 and 3,600 jobs respectively over the same year.

At the state level, California’s unadjusted unemployment rate stood at 5.7% in June, while the national average was lower at 4.4%. The differences raise concerns among economists about the job quality and pay levels of positions being lost, particularly in high-value sectors. This trend of rising unemployment is not unique to San Diego, as other Southern California counties are also reporting similar increases.

In summary, June’s upsurge in San Diego County’s unemployment rate has sparked economic concern among analysts and officials alike. While job growth is evident in certain sectors, the losses in professional services, government, and manufacturing illustrate challenges in the regional economy that may require attention moving forward.

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Additional Resources

• 10 News: San Diego County Sees Unemployment Leap
• Wikipedia: Unemployment in the United States
• San Diego Union Tribune: Unemployment Drops as Tourism Hiring Surges
• Google Search: San Diego unemployment 2025
• Stacker: Counties with Highest Unemployment in California
• Google Scholar: California unemployment rate
• Times of San Diego: Unemployment Rate Declines in September
• Encyclopedia Britannica: Unemployment