California’s February Unemployment Rate Remains at 5.4%

Important Note: The employment data for the month of February 2026 comes from the survey week that included February 12. The release date for March 2026 data is scheduled for release on May 1.

SACRAMENTO — California’s unemployment rate stayed at 5.4 percent¹, and California’s nonfarm payroll jobs² decreased by 19,900 jobs in February 2026, according to the latest Employment Development Department (EDD) data coming from two separate surveys. January’s job gain was revised down (-11,700) to a total gain of 81,800 jobs for January 2026.

California's Labor Market, by the Numbers...

• The State's zero-change in its month-over unemployment rate contrasts with the nation’s 0.1 percentage point month-over gain. Year over, the State’s unemployment rate has held steady at 5.4 percent whereas the nation’s rate increased from 4.2 percent to 4.4 percent.
• The month-over job loss for February 2026 (-19,900) was the first time since September 2025 that the State experienced a month-over nonfarm job loss. A big factor in the decline was the first jobs reduction in Private Education & Health Services in 28 months as a major strike disrupted the sector.
• February’s decline in the number of unemployed Californians (-12,100) marks the fourth consecutive month of reductions with a total decline of 27,000 persons over that timeframe.
• Four of California's 11 industry sectors gained jobs in February, with Government (+5,800) showing the biggest gains as hiring increased in Local Government Educational Services as well as with Federal Government (excluding Department of Defense), which moved against recent trend of declines.
• Professional & Business Services (+4,100) included strong gains in Investigation and Security Services as well as Services to Buildings and Dwellings. Employment Services also contributed to the gain.
• Private Education & Health Services (-24,100) led job losses in the state, followed by Leisure & Hospitality (-4,700), which moved against trend with its first job loss after four straight months of gains. Those losses were driven by reductions in Accommodation and Food Services.

<sub>1. The unemployment rate comes from a separate federal survey of 4,400 California households.
2. The nonfarm payroll job numbers come from a federal survey of 80,000 California businesses.</sub>

Data Trends about Jobs in the Economy

Total Nonfarm Payroll Jobs (Comes from a monthly survey, seasonally adjusted, of approximately 80,000 California businesses)

• Month-over — Total nonfarm jobs in California’s 11 major industries amounted to 18,124,400 in February – a loss of 19,900 from January. This followed January’s downward revision of 11,700 jobs, resulting in a month-over January gain of 81,800 jobs.
• Year-over — Total nonfarm jobs increased by 120,500 (0.7% percent increase) from February 2025 to February 2026 compared to the U.S. year-over gain of 156,000 jobs (a 0.1% percent increase).

Total Farm Jobs — The number of jobs in the agriculture industry increased from January by 5,900 to a total of 414,400 jobs in February. The agriculture industry had 26,500 more farm jobs in February 2026 than it did in February of last year.

Data Trends about Workers in the Economy

Employment and Unemployment in California (Based on a monthly federal survey of 4,400 California households which focuses on workers in the economy)

• Employed — The number of Californians employed in February was 18,756,200, a decrease of 23,100 persons from January’s total, and up 46,000 from the employment total in February 2025.
• Unemployed — The number of unemployed Californians in February was 1,070,300, a decrease of 12,100 from January, but up 3,700 from February 2025.

Unemployment Insurance Claims (Not Seasonally Adjusted)

The following data is from a sample week that includes the 19^th of each month:
In related data that figures into the State’s unemployment rate, there were 376,705 people certifying for Unemployment Insurance (UI) benefits during the February 2026 sample week. That compares to 375,219 people in January and 407,881 people in February 2025. Concurrently, 42,712 initial claims were processed in the February 2026 sample week, which was a month-over decrease of 632 claims from January, but a year-over increase of 57 claims from February 2025.