California’s unemployment rate stayed at 5.4% in February 2025, even though the state lost 7,500 jobs. This follows an even larger job loss of 21,400 positions in January, according to the Employment Development Department (EDD). The steady unemployment rate might be due to people leaving the workforce or finding part-time positions rather than full-time jobs.
Despite these recent losses, California’s job market has grown consistently for almost five years, driven by recovery efforts following the COVID-19 pandemic and ongoing economic diversification. Compared to February 2024, the state has added 78,200 jobs, showing slow but steady improvement overall.
In February, fewer people were unemployed compared to January, dropping by 8,200. However, there were still 60,600 more unemployed people than at the same time last year. While some people are finding jobs, sectors like hospitality, construction, and business services face significant challenges.
