News Summary

San Diego County’s unemployment rate increased to 5.2% in July, surpassing both the previous month and last year’s figures. The county lost 15,500 jobs compared to June, primarily due to cuts in the government sector. Although some sectors saw job growth, economists express concern that high inflation and wages may push residents to seek employment elsewhere. The economic data will be vital for policymakers aiming to stimulate job growth.

San Diego County Faces Rising Unemployment Rates as Job Growth Slows Mid-Year

San Diego County’s unemployment rate has climbed to 5.2% in July, a noticeable increase from a revised 4.9% in June and higher than the 4.8% rate recorded during the same month last year. This rise in unemployment contrasts with the overall rates for California, which stands at 6.1%, and the national average of 4.6%.

In July, San Diego County saw a decrease of 15,500 jobs in total nonfarm employment, falling to 1,557,600 from 1,573,100 in June. This decline is reflective of a broader regional economic slowdown mirrored by national trends. Specific sectors experienced significant cuts, particularly the government sector, which lost 17,200 jobs, primarily attributed to summer recess.

Within the government sector, state positions were diminished by 2,900, whereas federal employment numbers remained unchanged. Additionally, the agricultural sector saw a decrease of 100 jobs. The disconnect between job losses and gains in other sectors has left local economists analyzing the overall impact on the job market.

Sector Performance and Job Gains

Despite the overall job decline in July, seven industries reported positive growth, contributing to a combined 3,000 new jobs. The private education and health services sectors led the way, adding 1,400 jobs largely due to health care and social assistance roles. Year-over-year, from July 2024 to July 2025, total nonfarm employment in the region has increased by 6,300 jobs, indicating some potential for recovery, particularly within the private education and health sectors.

However, the increase in agricultural jobs does not mirror this optimism, having fallen by 100 year-over-year. While private education and health services have benefitted from an impressive growth of 14,400 jobs over the past year, totaling 13,300 sourced specifically from health care and social assistance, some sectors faced losses. Professional and business services recorded the largest year-over-year decline, accounting for 6,800 fewer jobs, with manufacturing not far behind at 3,800 job losses.

Impact on Local Workforce and Economic Indicators

San Diego County’s labor force stands at approximately 1.67 million individuals, reflecting a year-over-year increase of 1%. Economists are concerned that ongoing economic conditions may drive residents to leave the area in search of better job opportunities, especially as San Diego faces the highest inflation rate in the nation at 4%.

The economic landscape in San Diego mirrors the nationwide slowdown, yet local experts believe that the crisis may not be as dire as the current unemployment numbers suggest. One contributing factor to the slowdown is the high minimum wage in California, which may impede job creation, particularly for young workers aged 16 to 19.

Job Market Overview and Future Prospects

As of July, significant job openings were reported in various industries, with retail salespersons leading the way with 1,579 ads, followed by registered nurses with 1,490 ads, computer occupations at 896, and home health/personal care aides with 857. Major employers actively seeking talent included UC San Diego, Sharp Healthcare, Qualcomm, Scripps Health, Starbucks, General Atomics, and Apple.

San Diego County’s unemployment rate of 5.2% compares notably higher than rates in some other large Californian counties, such as Los Angeles County at 6.4% and San Francisco County at 4.4%. The current economic data will be critical for local policymakers as they devise strategies to stimulate job growth and reduce unemployment in the coming months.

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Additional Resources

• San Diego Union Tribune: Rising Unemployment
• Wikipedia: Unemployment
• Fox 5 San Diego: Unemployment Rate Reaches 5.2%
• Google Search: San Diego unemployment rate
• NBC San Diego: Unemployment Rate Rises
• Google Scholar: San Diego job market
• CoStar: Unemployment Rate Edges Down
• Encyclopedia Britannica: Unemployment
• Times of San Diego: Unemployment Rate Hits 4.2%

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.