California’s unemployment rate rises to highest in the country as layoffs mount
California’s unemployment rate rose slightly, by 0.1 percentage point, to 5.4% in June, tying Nevada for the highest rate in the U.S., according to new federal data released Friday.
The state lost a net 6,100 jobs, including 9,900 layoffs in business and professional services. Health care and government saw job gains, but other sectors all shrunk.
San Francisco’s unemployment rate rose 0.7 percentage points to 4.2% in June.
The number of jobs in San Francisco and San Mateo counties increased by 4,000 jobs in June. However, on a seasonally adjusted basis the two counties lost 700 jobs compared to the prior month, said Michael Bernick, special counsel at Duane Morris.
In June, the number of people unsuccessfully seeking work in San Francisco and San Mateo counties rose by 17.7%, according to a state survey, leading to a higher unemployment rate.
In the two counties, the government sector lost 700 jobs and private education and health services lost more than 500 positions due to school summer break.
Professional services gained 1,600 jobs.
“The change is rooted in the ongoing slowdown in the tech sector, the high costs of living, and local and state employment policies that make hiring more costly than other parts of the state,” said Bernick, former director of the state Employment Development Department.
Widespread tech layoffs have continued, with companies like Scale AI, Microsoft and Intel cutting staff.
“Although the nation’s tariff chaos is certainly creating broad uncertainty, these losses aren’t about tariffs,” said Christopher Thornberg, founding partner of Beacon Economics, in a statement. “The declines were in Manufacturing, Information, and Professional Services and centered in the Bay Area, meaning they are a reflection of the ongoing contraction in the tech space, which in turn, is being driven by AI.”
California’s May jobs gains were also revised downward to a 11,700 increase, down 6,000 jobs compared to a preliminary estimate of 17,700.
California’s unemployment rate rises to highest in the count
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#3 Re: California’s unemployment rate rises to highest in the count
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