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Beacon Economics

July 17, 2026

Beacon Employment Report | California

Presented by Beacon Economics

Copyright © Beacon Economics LLC

INDUSTRY OVERVIEW

Year-over-year, Health Care led growth, with payrolls in California expanding by 135,300 or 4.5%. Other sectors posting strong gains over the last year include Leisure and Hospitality (36,800 or 1.8%), Education (19,300 or 4.6%), Professional, Scientific, and Technical Services (14,100 or 1.0%), Retail Trade (9,100 or 0.6%), Other Services (6,900 or 1.2%), and Real Estate (1,100 or 0.4%).

Government led declines over the last year, with payrolls falling by 32,400, a -1.2% decrease. Job losses have been driven by declines in Federal and State Government, while Local Government has grown. Other sectors with notable contractions over the last year include Information (-16,900 or -3.2%), Construction (-15,400 or -1.7%), Admin Support (-15,100 or -1.4%), Manufacturing (-13,300 or -1.1%), Finance and Insurance (-9,000 or 1.8%), Transportation, Warehousing, and Utilities (-7,200 or -0.9%), Management (-4,200 or -1.5%), and Wholesale Trade (-2,600 or -0.4%).

Month-over-month, growth was mixed at the industry level. Health Care led payroll gains in June, with payrolls expanding by 10,400, an increase of 0.3% on a month-over-month basis. Other sectors posting strong gains during the month include Education (5,100 or 1.2%), Leisure and Hospitality (1,100 or 0.1%), Professional, Scientific, and Technical Services (800 or 0.1%), and Real Estate (500 or 0.3%).

Government saw the largest declines over the month, with payrolls falling by -7,600, a decrease of -0.3% on a month-over-month basis. Other sectors posting significant losses during the month include Construction (-4,100 or -0.5%), Admin Support (-2,900 or -0.2%), Transportation, Warehousing, and Utilities (-2,000 or -0.2%), Manufacturing (-1,400 or -0.1%), Finance and Insurance (-1,300 or -0.2%), Management (-1,000 or -0.4%), Other Services (-700 or -0.1%), Wholesale Trade (-400 or -0.1%), and Retail Trade (-400).

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