January 9, 2026
Beacon Employment Report | California
Presented by Beacon Economics
Copyright © Beacon Economics LLC
The Beacon Employment Report has been updated with October and November data (delayed due to the federal government shutdown). Please note that because of the shutdown the Household Survey data for October was not collected and will not be released. For the current report, Beacon Economics’ analysts imputed the October data. We will update this report again as soon as the latest data becomes available.
Latest Numbers Show Job Gains
Housing Shortage Still Constraining Labor Supply; Unemployment Ticks Down
32,500
Monthly Job Gain
California’s nonfarm payroll jobs grew in November, with total nonfarm employment in the state rising to a seasonally adjusted 18,024,900, an increase of 32,500 positions over the month, according to an analysis released by Beacon Economics. September’s jobs losses were revised to a 6,200 decline in the latest numbers, 1,700 more than the preliminary estimate of 4,500.
5.5%
Unemployment Rate
Overall, California’s labor market continues to be supported mostly by locally serving industries such as Health Care, Government, and Leisure and Hospitality, but growth still trails the nation. California increased payrolls by just 0.2% from November 2024 to November 2025, compared to a 0.5% increase nationally over the same period.
While growth remains positive in California, employment levels are down 120,900 over the past year, a 0.8% decline, without the gains in Health Care.
California’s unemployment rate fell to 5.5% in November, a 0.1 percentage-point decrease from September. (Editor’s note: Due to the government shutdown, no household survey data was released for October). At 5.5% California’s unemployment rate remains among the highest in the nation, behind only Washington D.C.
43,200
September-November Labor Supply Growth
California’s labor supply is growing slowly, expanding by just 43,200 from September to November. Since February 2020, the state’s labor force has grown by just 277,500 workers, a 1.4% increase. This trails the nation’s 4.3% growth over the same period. California’s chronic housing shortage continues to be the greatest constraint to labor supply growth.
The recent ICE raids do not appear to be having a significant impact on California’s labor force, however the states chronic housing shortage continues to limit its ability to grow.
(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