California’s Unemployment Rate Improves to 5.1 Percent
Important Note: The employment data for the month of July 2026 comes from the survey week that included July 12. The release date for Aug. 2026 data is scheduled for release on Sept. 18.
SACRAMENTO — California’s unemployment rate dropped to 5.1 percent1 as the State also lost 20,500 nonfarm payroll jobs2 in July 2026 according to the latest Employment Development Department (EDD) data, which comes from two separate surveys. July marks the second straight month of a decline in the unemployment rate, while total jobs for the State back in June were revised up (+9,000), resulting in an overall gain of 6,100 jobs.
California's Labor Market, by the Numbers...
- July 2026’s unemployment rate of 5.1 percent is the lowest it’s been since Feb. 2024.
- California added 70,500 jobs since the beginning of 2026, averaging a gain of 10,070 jobs per month.
- Despite the month-over job loss of 20,500, the State has contributed 16.5 percent of the nation’s overall job growth (+426,000) since the beginning of the year.
- July marks the State’s eighth consecutive monthly decline in the number of unemployed Californians (-18,000), totaling 87,600 fewer persons over that timeframe.
- Four of California's 11 industry sectors added jobs in July, led by Construction (+2,900). These gains were led by an above-average increase in Building Equipment Contractors, some of which are tied to the construction of housing and infrastructure.
- Trade, Transportation, & Utilities (+2,800) also saw an increase in employment with above-average gains in the Air Transportation, Truck Transportation, Couriers and Messengers, and Warehousing and Storage subsectors.
- Professional & Business Services (-15,300) posted the State’s largest month-over job loss going against trends for this time of year, driven primarily by declines in jobs related to Computer System Design and Advertising. Employment Services also saw a larger-than-expected reduction in jobs.
1. The unemployment rate comes from a separate federal survey of 4,400 California households.
2. The nonfarm payroll job numbers come from a federal survey of 80,000 California businesses.
Data Trends about Jobs in the Economy
Total Nonfarm Payroll Jobs (Comes from a monthly survey of approximately 80,000 California businesses – seasonally adjusted)
- Month-over – Total nonfarm jobs in California’s 11 major industries amounted to 18,133,000 in July – a reduction of 20,500 from June. This followed June’s upward revision of 9,000 jobs, resulting in a month-over June gain of 6,100 jobs.
- Year-over – Total nonfarm jobs increased by 112,700 (0.63 percent increase) from July 2025 to July 2026 compared to the U.S. year-over gain of 316,000 jobs (0.2 percent increase).
| Major Industries | Month-over Change June 2026 – July 2026 |
Year-over Change July 2025 – July 2026 |
Total Payroll Jobs as of July 2026 |
|---|---|---|---|
| Construction | +2,900 | -6,700 | 887,400 |
| Trade, Transportation, and Utilities | +2,800 | +11,600 | 3,056,600 |
| Other Services | +2,700 | +12,100 | 605,400 |
| Private Education and Health Services | +2,100 | +134,700 | 3,617,100 |
| Mining and Logging | -100 | -100 | 18,300 |
| Manufacturing | -1,300 | -12,500 | 1,201,900 |
| Government | -1,400 | -15,000 | 2,669,700 |
| Information | -1,900 | -20,000 | 512,400 |
| Financial Activities | -3,600 | -13,600 | 780,200 |
| Leisure and Hospitality | -7,400 | +35,500 | 2,047,400 |
| Professional and Business Services | -15,300 | -13,300 | 2,736,600 |
Total Farm Jobs – The number of jobs in the agriculture industry decreased by 4,200 since June to a total of 409,100 jobs in July. The agriculture industry had 15,600 more farm jobs in July 2026 than it did in July 2025.
Data Trends about Workers in the Economy
Employment and Unemployment in California (Based on a monthly federal survey of 4,400 California households which focuses on workers in the economy)
- Employed – The number of Californians employed in July was 18,543,600, a decrease of 52,200 from June and down 197,400 compared to July of last year.
- Unemployed – The number of unemployed Californians was 1,006,500 in July, a decrease of 18,000 from June and a decrease of 88,800 from July 2025.
| California Labor Force | Month-over Change (June 2026 – July 2026) | Year-over Change (July 2025 – July 2026) |
|---|---|---|
| * Civilian Labor Force (19,550,000) | -70,300 | -286,300 |
| Total Civilian Employment (18,543,600) | -52,200 | -197,400 |
| Unemployment (1,006,500) | -18,000 | -88,800 |
* Labor force by place of residence, including workers involved in trade disputes.
Unemployment Insurance Claims (Not Seasonally Adjusted)
The following data is from a sample week that includes the 19th of each month:
In related data that figures into the State’s unemployment rate, there were 346,151 people certifying for Unemployment Insurance (UI) benefits during the July 2026 sample week. That compares to 346,867 people in June and 386,665 people in July 2025. Concurrently, 37,990 initial claims were processed in the July 2026 sample week, which was a month-over decrease of 5,956 claims from June and a year-over decrease of 3,870 claims from July 2025.
| California Unemployment Insurance Claims | Month-over Change (June 2026 – July 2026) | Year-over Change (July 2025 – July 2026) |
|---|---|---|
| UI Recipients (346,151) | -716 | -40,514 |
| New UI Claims (37,990) | -5,956 | -3,870 |
| County | Labor Force | Employment | Unemployment | Rate |
|---|---|---|---|---|
| STATE TOTAL | 19,360,400 | 18,336,200 | 1,024,200 | 5.3% |
| ALAMEDA | 850,700 | 811,200 | 39,500 | 4.6% |
| ALPINE | 430 | 390 | 40 | 9.5% |
| AMADOR | 14,810 | 13,980 | 840 | 5.7% |
| BUTTE | 87,900 | 82,500 | 5,400 | 6.1% |
| CALAVERAS | 17,530 | 16,460 | 1,070 | 6.1% |
| COLUSA | 11,500 | 10,320 | 1,190 | 10.3% |
| CONTRA COSTA | 571,300 | 543,900 | 27,400 | 4.8% |
| DEL NORTE | 9,200 | 8,640 | 560 | 6.1% |
| EL DORADO | 88,700 | 84,400 | 4,300 | 4.9% |
| FRESNO | 472,200 | 435,600 | 36,500 | 7.7% |
| GLENN | 11,290 | 10,460 | 830 | 7.3% |
| HUMBOLDT | 58,500 | 55,300 | 3,100 | 5.3% |
| IMPERIAL | 73,400 | 59,000 | 14,400 | 19.7% |
| INYO | 8,380 | 8,000 | 380 | 4.5% |
| KERN | 403,900 | 369,100 | 34,800 | 8.6% |
| KINGS | 59,700 | 54,600 | 5,100 | 8.6% |
| LAKE | 25,910 | 24,070 | 1,840 | 7.1% |
| LASSEN | 7,840 | 7,310 | 530 | 6.7% |
| LOS ANGELES | 4,937,400 | 4,679,700 | 257,700 | 5.2% |
| MADERA | 70,400 | 65,200 | 5,200 | 7.4% |
| MARIN | 122,700 | 117,600 | 5,100 | 4.2% |
| MARIPOSA | 7,910 | 7,480 | 430 | 5.4% |
| MENDOCINO | 36,330 | 34,340 | 1,990 | 5.5% |
| MERCED | 122,600 | 111,500 | 11,100 | 9.1% |
| MODOC | 3,070 | 2,890 | 180 | 6.0% |
| MONO | 8,800 | 8,440 | 350 | 4.0% |
| MONTEREY | 227,900 | 215,000 | 12,900 | 5.7% |
| NAPA | 74,500 | 71,400 | 3,100 | 4.2% |
| NEVADA | 46,960 | 44,740 | 2,220 | 4.7% |
| ORANGE | 1,603,600 | 1,535,700 | 67,900 | 4.2% |
| PLACER | 205,600 | 196,500 | 9,100 | 4.4% |
| PLUMAS | 8,070 | 7,620 | 460 | 5.6% |
| RIVERSIDE | 1,178,000 | 1,108,900 | 69,000 | 5.9% |
| SACRAMENTO | 773,900 | 734,500 | 39,500 | 5.1% |
| SAN BENITO | 34,300 | 32,200 | 2,000 | 5.9% |
| SAN BERNARDINO | 1,016,500 | 960,400 | 56,100 | 5.5% |
| SAN DIEGO | 1,634,400 | 1,558,000 | 76,500 | 4.7% |
| SAN FRANCISCO | 498,300 | 478,700 | 19,600 | 3.9% |
| SAN JOAQUIN | 370,400 | 346,700 | 23,700 | 6.4% |
| SAN LUIS OBISPO | 131,900 | 125,900 | 6,000 | 4.5% |
| SAN MATEO | 408,100 | 392,600 | 15,500 | 3.8% |
| SANTA BARBARA | 222,700 | 212,700 | 9,900 | 4.5% |
| SANTA CLARA | 1,027,300 | 985,400 | 41,900 | 4.1% |
| SANTA CRUZ | 137,100 | 129,800 | 7,300 | 5.3% |
| SHASTA | 80,300 | 76,100 | 4,200 | 5.3% |
| SIERRA | 1,580 | 1,520 | 70 | 4.2% |
| SISKIYOU | 15,970 | 14,810 | 1,150 | 7.2% |
| SOLANO | 214,800 | 203,500 | 11,300 | 5.3% |
| SONOMA | 243,800 | 233,200 | 10,500 | 4.3% |
| STANISLAUS | 252,100 | 234,500 | 17,600 | 7.0% |
| SUTTER | 45,600 | 42,100 | 3,500 | 7.6% |
| TEHAMA | 26,480 | 24,800 | 1,680 | 6.3% |
| TRINITY | 5,690 | 5,390 | 300 | 5.3% |
| TULARE | 211,200 | 189,400 | 21,800 | 10.3% |
| TUOLUMNE | 21,990 | 20,800 | 1,180 | 5.4% |
| VENTURA | 412,500 | 392,900 | 19,600 | 4.7% |
| YOLO | 111,200 | 105,000 | 6,200 | 5.6% |
| YUBA | 35,300 | 32,900 | 2,400 | 6.7% |
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