September 18, 2026
Beacon Employment Report | California
Presented by Beacon Economics
Copyright © Beacon Economics LLC
Beacon Economics publishes a variety of online reports that analyze and forecast the U.S., California, and California regional economies. These publications provide users with the latest data, and with substantive commentary on the overall direction of the economy, employment and unemployment, international trade, real estate markets, consumer and business spending, and much more. The reports represent only a sampling of the kind of analysis Beacon Economics produces.
California's Job Growth Rebounds In Latest Data
Labor Supply Trending Down In Both State And Nation
39,400
Monthly Job Gain
California’s nonfarm payroll jobs rebounded in August, with total nonfarm employment in the state growing to a seasonally adjusted 18,177,200, an increase of 39,400 positions over the month.
Additionally, the initial estimate of July’s job counts was revised upward by 4,800. As a result, employment fell by 15,700 instead of 20,500 from June to July.
From August 2025 to August 2026, California increased payrolls by 0.8%, outpacing the nation’s 0.4% increase over the same period. California’s labor market continues to be supported mostly by locally serving industries such as Health Care, Retail Trade, and Education. Without the state’s sizeable gains in Health Care, employment levels in the state would be up just 0.2% over the last year.
5.1%
Unemployment Rate
California’s unemployment rate remained unchanged at 5.1% in August. The state’s unemployment rate has fallen by 0.4 percentage-points over the last year, while the nation’s rate is down 0.2 percentage-points. However, with limited job gains, declining unemployment is being driven by a contraction of California’s labor force rather than a strong job market.
The state’s unemployment rate remains among the highest in the nation, behind only Washington D.C. and tied with Oregon and Connecticut.
50,500
Labor Supply Decline
Labor force has trended down in California and the United States this year. In the most recent data, the state’s labor supply decreased by 50,500, or -0.3%, month-over-month. Over the last year, California’s labor force has fallen by 337,200 workers, a 1.7% decline, and a steeper drop compared to the nation (0.6%).
While lower levels of international migration to the United States, an aging population, and the state’s chronic housing shortage continues to limit labor supply growth, the inherent variability and noise in survey data may also be playing a role.
“The decline in the labor force is alarming, but the numbers are questionable,” said Research Manager Justin Niakamal. “The two surveys that make up these monthly numbers have diverged with the survey of household employment showing a large loss and the survey of business establishments showing a significant gain.” Niakamal notes that the data may be revised in the future.
(If you are unable to view the graphics in the Beacon Employment Report, please check your cookie settings.)
The Beacon Employment Report | California is a unique analysis of California’s employment numbers and trends. Each month, we link our own econometric predictions to data released by the U.S. Bureau of Labor Statistics and the California Employment Development Department to identify important changes in employment across industries and regions. The Beacon Employment Report is also one of the few analyses that uses seasonally adjusted numbers, which are critical to revealing accurate trends and insights within data. The analysis is a sample of the kind of research available from Beacon Economics.
The contents of this report are based on information derived from carefully selected sources Beacon Economics believe are reasonable. We do not guarantee its accuracy or completeness and nothing presented here shall be construed to be a representation of such a guarantee.
More
Information
For information about Beacon’s practice areas, please contact:
Business Development Team at [email protected]
or 424-666-2165