News Summary
California’s unemployment rate has risen to 5.5% for July, despite adding 15,000 nonfarm jobs. The number of unemployed individuals has reached over 1 million, with significant job losses in the tech sector. While the Bay Area added jobs, ongoing job losses in core sectors raise concerns about the economic stability of the region.
California has recorded the highest unemployment rate in the nation at 5.5% for July, an increase from 5.4% in June. This rise comes despite the state adding 15,000 nonfarm jobs during the same month, according to data from the Employment Development Department (EDD). The latest statistics indicate that the number of unemployed individuals in California has reached 1,088,600, which marks an increase of 18,200 since June and 31,800 from one year ago.
Notably, the recent job growth in California represents 20.5% of the 73,000 jobs added nationally in July. However, this job gain follows a downward revision in June, where an initial report indicated job losses of 9,500. Year-over-year data reveals that California has seen a net addition of 83,800 jobs, primarily within sectors such as private education, health services, and government roles.
In July, six out of eleven industry sectors in California reported job gains. However, the professional and business services sector continued to struggle, exhibiting consistent job losses throughout 2025. The information sector, heavily reliant on technology, lost 1,000 jobs from June to July and has experienced a total decline of 12,400 jobs since July 2024. Economists express growing concern regarding the reliance on the tech sector and ongoing housing supply issues which could exacerbate the Bay Area’s economic stability.
Within California, the Bay Area added 2,800 jobs in July, recovering from a loss of 1,700 jobs in June. This recovery is tempered by the fact that the region has lost a total of 17,400 jobs year-to-date in 2025. More specifically, the East Bay gained 900 jobs, with both the South Bay and San Francisco-San Mateo region adding 800 jobs each. While these figures provide a glimmer of hope, the Bay Area also witnessed significant tech industry losses in July, with a statewide decline of 6,700 tech jobs, 2,500 of which were attributed to the Bay Area.
The health care sector in the Bay Area performed strongly, adding 4,800 jobs in July alone. Gains were spread across various regions, with 2,100 jobs in the East Bay, 1,600 jobs in the South Bay, and 1,000 jobs in the San Francisco-San Mateo area. In contrast, industries such as manufacturing, retail, and construction faced job losses of 1,100, 800, and 100 respectively during the same period.
Underlying these employment trends are significant layoffs in California’s technology sector, which has recorded over 10,000 job cuts in 2025 alone. These layoffs stem from adjustments made in response to the pandemic and the ongoing transition to artificial intelligence technologies. As companies adapt to new market demands and efficiencies, job security remains tenuous for many in the workforce.
Looking ahead, economists warn that despite the job gains in July, the Bay Area’s labor market is on “shaky ground.” The ongoing job losses in core sectors and dependency on the volatile tech industry might present challenges for future stability and growth in California’s economy.
Deeper Dive: News & Info About This Topic
- San Francisco Chronicle
- Kron 4 News
- Orange County Register
- Victorville Daily Press
- Silicon Valley News
- Wikipedia: Unemployment
- Google Search: California unemployment rate
- Google Scholar: California unemployment jobs
- Encyclopedia Britannica: Unemployment
- Google News: California unemployment
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, 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 Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
