California Unemployment Rate Hits 5.1% in July

California's unemployment rate has dropped to its lowest level since February 2024, reaching 5.1% in July 2026. This marks the second consecutive month of decline in the unemployment rate.

The state lost 20,500 nonfarm payroll jobs in July, but added 70,500 jobs since the beginning of 2026, averaging a gain of 10,070 jobs per month.

Despite the job loss, California has contributed 16.5% of the nation's overall job growth since the start of the year, adding 426,000 new jobs.