September 19, 2025
Beacon Employment Report | California
Presented by Beacon Economics
Copyright © Beacon Economics LLC
California Gains Few Jobs In Latest Numbers
Labor Supply Expanding Slowly; ICE Raids Not Affecting Labor Force To Date
3,800
Monthly Job Increase
California’s nonfarm payroll jobs increased in August (the latest data), with total nonfarm employment in the state growing to a seasonally adjusted 18,011,200, an increase of just 3,800 positions over the month.
At the same time, July’s job losses were revised from their preliminary estimate, a 15,000 increase, to a 300 decrease. Overall, California’s labor market continues to be supported by locally serving industries such as Health Care, Government, Education, and Leisure and Hospitality.
5.5%
Unemployment Rate
“We’re seeing a softening in U.S. payrolls so it isn’t surprising that California’s job growth has been paltry,” said Justin Niakamal, Research Manager at Beacon Economics. “The brighter side of this is that the recent Fed cut and the Fed’s signaling of further cuts, could provide a short-term boost to hiring plans.”
Employment growth in the state continues to trail the nation. Since February 2020 (the start of the pandemic), total nonfarm employment in California has grown 2.0% compared to a 4.8% increase nationally. In addition, the state increased payrolls by just 0.4% from August 2024 to August 2025, trailing the 0.9% increase nationally over the same period.
6,600
Monthly Labor Supply Growth
California’s unemployment rate was 5.5% in August 2025, unchanged from the prior month. California’s unemployment rate is the second highest in the nation, behind only Washington D.C..
California’s labor supply continues to slowly rise, expanding by 6,600 in August. Since February 2020, the state’s labor force has grown by just 229,800 workers, a 1.2% increase. To date, the recent ICE raids do not appear to have had an impact on the state’s labor force.
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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.
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