California boasts steady unemployment rate, promising job market growth ahead of summer

SACRAMENTO, Calif. (CN) — The Golden State says that its unemployment rate has held steady this spring, sitting at 4.5% in May, as the job market continues to grow since recovery began in 2020. 

In a new California Employment Development Department report Friday, the state says that employers added 47,300 non-farm payroll jobs to the economy, or 14% of the national job gain of 339,000. Data from two surveys show the total non-farm employment for April increased by 2,900 jobs.

California now has the fourth-largest economy in the world. Since the economic expansion began in April 2020, the state has added 3,170,200 jobs, or on average, 85,681 new jobs per month.

Total non-farm jobs in the state's 11 major industries totaled 18,088,200 in May — a net gain of 47,300 from April. Those jobs also increased by 427,500, or 2.4%, since May 2022, compared to the U.S. annual gain of 4,063,000 jobs, a 2.7% increase.

Eight of California’s 11 industry sectors gained jobs in May. The private education and health services sector added the most at 16,400 jobs, including in general medical and surgical hospitals, nursing care facilities and industry groups. The professional and business services sector enjoyed the second-strongest month-over increase at 11,700 new jobs, including in the computer systems design and scientific research and development areas. 

However, the manufacturing sector suffered the largest month-over job reduction, losing 5,700 jobs. The state blamed losses in computer and electronic, fabricated metal, machine and apparel manufacturing.

The number of Californians employed in May increased by 9,900 people since April, while the unemployed rate grew by 14,900 over the month – 122,600 more than in May 2022.

There were 391,004 people seeking unemployment insurance benefits during the May sample week, compared to 427,741 in April and 330,412 in May 2022.

The counties with the highest unemployment rates are Imperial, Colusa and Tulare at 16%, 13.5% and 10%, respectively, all within the eastern regions of inland California. The lowest unemployment rates continue to be in the state’s coastal northern regions, with San Mateo County holding at 2.7%, followed by San Francisco, San Luis Obispo and Marin counties, all at 3%.

Governor Gavin Newsom recently said that California is maintaining funds to continue increasing employment and workforce development in a proposed budget — which must be signed with the Legislature’s agreement by July 1 — despite a deficit topping above $30 billion. 

Employment data for June is scheduled for release on July 21.

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