Web Version [link removed] | Update Preferences [link removed] [link removed] California Employment Report for June 2025

The Center for Jobs and the Economy has released our initial analysis of the June Employment Report from the California Employment Development Department. For additional information and data about the California economy, visit [[link removed]].

Revenue Tracker

The Department of Finance economic projections form the base of the revenue projections used to craft the state budget. Using the preliminary results from the June numbers, the most recent projections for the May Revise appear to be largely on target. As discussed in last month’s jobs report, however, the preliminary estimates coming from the full job counts in the Quarterly Census of Employment & Wages indicate that the state’s job numbers will be revised 102,700 lower when the annual revisions are made next March. This outcome would put the job projections off by -0.5%.

Nonfarm Jobs Drop for the 4th Month in 2025

In the preliminary numbers, seasonally adjusted nonfarm jobs fell 6,100 in June, the 4th month to date in 2025 posting a loss. The May numbers were adjusted down by 6,000 to a revised gain of 11,700, with California showing a net loss of 23,700 nonfarm jobs in the first half of the year.

The June result was the 45th highest among the states, with jobs again led by Ohio with a gain of 10,400 followed by Illinois with 9,400 and Georgia at 9,100.

Looking at net total nonfarm job gains compared to pre-pandemic peaks, California remained in 4th place behind much smaller North Carolina but with Georgia continuing to gain ground.

By industry, both government and government-dependent Healthcare & Social Assistance again dominated the picture, with gains of 11,200 in June that were more than offset by a 17,300 loss in all other private industries. Still some gains were reported within this last category, led by seasonal upswings in Arts, Entertainment & Recreation (7,700), Construction (3,100), and Private Educational Services (1,800). These gains were more than offset by greater losses led by further drops in Manufacturing (-6,400) and Accommodation & Food Services (-3,400), as well as tech-containing Information (-6,100) and Professional, Scientific & Technical Services (-3,200).

Change in Nonfarm Jobs by Industry California Unemployment Rate Up at 5.4%

California’s seasonally adjusted unemployment rate notched up 0.1 point to 5.4%, tied as the 2nd highest among the states with Nevada and below only DC. The US unemployment rate notched down 0.1 point to 4.1%. Total unemployed rose by 11,700, remaining above the 1 million level for the 18th month in a row.

5.4% CA Unemployment Rate

California's reported unemployment rate (seasonally adjusted) rose to 5.4%. The US rate edged down to 4.1%.

Among the states, California again had the second highest unemployment rate, tied with Nevada and just behind DC.

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1.7k CA Employment

Employment rose by 21,700 (seasonally adjusted).

US employment rose by 93,000.

California unemployment rose by 11,700, while US unemployment fell by 222,000. California unemployment has been above 1 million for the past 18 months in a row, the highest levels since the pandemic period in 2021.

62.4% CA Labor Force Participation Rate

California labor force (seasonally adjusted) grew by 33,400, pushing the labor force participation rate up 0.1 point to 62.4%. The US labor force edged down by 130,000, while the participation rate dipped 0.1 point to 62.3%.

Employment Recovery Progress: California Finally Breaks Pre-Pandemic Peak

Compared to the pre-pandemic peak in February 2020, California’s relative ranking for employment recovery rose slightly to the 7th lowest among the states and DC. June, however, was the first time California employment was above the pre-pandemic levels, taking 64 months to fully recover from the state’s job closures and other restrictions during that period.

Nonfarm Jobs -6.1k Nonfarm Jobs Change

Nonfarm wage and salary jobs (seasonally adjusted) were down 6,100 in the preliminary results for June, while May was revised down to a gain of 11,700.

For the US as a whole, nonfarm jobs rose 147,000 in June.

Recovery Progress: CA Nonfarm Jobs vs. Other States

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California’s monthly job performance in June was the 45th highest among the states and DC. Adjusted for size, California’s recovery level compared to the pre-pandemic peaks remained the 35th highest, while only 3 states and DC have yet to show positive recovery.

Wages & Hours 4.2% 12-month Change in Average Hourly Wage

In the seasonally unadjusted data, private average hourly wage rose 4.2% over the year, ranging from 0.4% in Construction to 8.4% in tech-containing Professional and Business Services. These higher labor costs, however, were largely offset by a reduction in average weekly hours, with an overall loss of 1.5% for all private sector jobs.

Unemployment Rates by Region

Unemployment rates (not seasonally adjusted) were higher in all regions other than the Central Coast compared to pre-pandemic February 2020 levels.

Counties with Double-Digit Unemployment 5 Counties with Unemployment Above 10%

The number of counties with an unemployment rate (not seasonally adjusted) at 10% or more rose to 5. The unadjusted rates ranged from 4.1% in San Mateo and Mono to 18.9% in Imperial.

Unemployment Rate by Legislative District

The estimated unemployment rates are shown below for the highest and lowest districts. The full data and methodology are available on the Center’s website.

The California Center for Jobs and the Economy provides an objective and definitive source of information pertaining to job creation and economic trends in California. [[link removed]] Contact 1301 I Street Sacramento, CA 95814 916.553.4093 If you no longer wish to receive these emails, select here to unsubscribe. [link removed]