California Unemployment Rate Hits 2-Year Low at 5.1 Percent
The state of California has seen its unemployment rate drop to 5.1 percent in July 2026, marking the second consecutive month of decline, according to data from the Employment Development Department (EDD). The rate is also the lowest it's been since February 2024.
Despite a loss of 20,500 nonfarm payroll jobs in July, California has added a total of 70,500 jobs since the beginning of this year, averaging a gain of 10,070 jobs per month. The state contributed 16.5 percent of the nation's overall job growth during this period, with an increase of 426,000 jobs nationwide.
The EDD also reported that four industry sectors added jobs in July, led by Construction (+2,900) and Trade, Transportation, & Utilities (+2,800). However, Professional & Business Services posted the state's largest job loss (-15,300), driven primarily by declines in Computer System Design and Advertising.