California’s jobless rate highest in nation
California’s unemployment rate rose to 5.3% in February, the highest level among all U.S. states, as it lost 3,400 non-farm jobs during the month.
California’s unemployment rate was up 0.1 percentage points from January as it surpassed Nevada, which previously had the nation’s highest unemployment rate. Nevada’s rate fell to 5.2%, from 5.3%, in the same time, according to data released Friday. The national unemployment rate was 3.9% in February, a two-year high.
Underscoring a faltering job market, California’s job growth in January was revised downward to 25,600 jobs compared to an earlier estimate of 58,100 jobs, according to the California Employment Development Department.
San Francisco’s unemployment rate was down slightly to 3.8% in February, from 4% in January, after seeing a jump at the start of the year, according to state data.
Statewide, the construction sector saw the heaviest losses of 9,600 jobs, and trade, transportation and utilities lost 7,300 jobs in February. Private education and health services gained 15,400 jobs, the most of any sector.
“Job losses occurred in nearly all of the major sectors, and would have been greater if not for the gains in health care,” said Michael Bernick, special counsel at law firm Duane Morris.
Bernick, the former director of the state EDD, cited California’s high cost of living for fueling a shortage of entry-level workers, as well as layoffs in tech.
“The tech sector, especially major firms, overhired in the first post-pandemic year, and has been shedding jobs since,” he said. “The Bay Area is the new epicenter of artificial intelligence startups. But these startups so far are creating a small number of jobs.”
Cisco, Instacart and Grammarly were among the Bay Area tech companies that slashed jobs in February.
More severe pandemic business lockdowns compared to other states and higher regulations are also factors dampening the job market, Bernick said.
The state’s unemployment rate is seasonally adjusted, while individual counties’ rates are not.
The San Francisco metro division, which includes San Mateo County, lost 1,300 jobs in February. The tech-heavy information sector lost 800 jobs and retail trade was down by 700 jobs. Professional and business services gained 1,600 jobs, and private educational services gained 2,000 jobs.
The San Francisco region has lost 16,700 jobs between February 2023 and February 2024, including 14,300 jobs in information amid heavy tech layoffs.
Across the Bay Area, Contra Costa County’s unemployment was 5% in February; Alameda County was at 4.9%; Napa was at 4.5%; Sonoma at 4.4%; Santa Clara was at 4.3%; Marin was at 4%; and San Mateo was at 3.7%, the lowest level in the state.