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Beacon Economics

August 21, 2026

Beacon Employment Report | California

Presented by Beacon Economics

Copyright © Beacon Economics LLC

INDUSTRY OVERVIEW

Year-over-year, Health Care led growth, with payrolls expanding by 115,100 or 3.8%. Other sectors posting strong gains over the last year were Leisure and Hospitality (35,500 or 1.8%), Education (19,600 or 4.7%), Retail Trade (12,200 or 0.8%), Other Services (12,100 or 2.0%), Professional, Scientific, and Technical Services (3,300 or 0.2%), Transportation, Warehousing, and Utilities (1,700 or 0.2%), and Real Estate (300 or 0.1%).

Information led declines over the last year, with payrolls falling by 20,000, a -3.8% decrease. This is being driven by drops in Software Publishers and Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. Other sectors with notable declines over the last year include Government (-15,000 or -0.6%), Finance and Insurance (-13,900 or -2.8%), Manufacturing (-12,500 or -1.0%), Admin Support (-10,800 or -1.0%), Construction (-6,700 or -0.7%), Management (-5,800 or -2.0%), and Wholesale Trade (-2,300 or -0.4%).

Month-over-month, only a handful of sectors increased payrolls in July. Transportation, Warehousing, and Utilities led the gains with payrolls expanding by 4,100, an increase of 0.5% on a month-over-month basis. Other sectors posting strong gains during the month were Health Care (3,500 or 0.1%), Construction (2,900 or 0.3%), and Other Services (2,700 or 0.4%).

Professional, Scientific, and Technical Services saw the largest payroll decline in July, with payrolls falling by -9,200, a contraction of -0.7% on a month-over-month basis. Other sectors posting significant declines during the month were Leisure and Hospitality (-7,400 or -0.4%), Admin Support (-6,200 or -0.6%), Finance and Insurance (-2,500 or -0.5%), Information (-1,900 or -0.4%), Government (-1,400 or -0.1%), Education (-1,400 or -0.3%), Manufacturing (-1,300 or -0.1%), Real Estate (-1,100 or -0.4%), Retail Trade (-700), and Wholesale Trade (-600 or -0.1%).

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