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California’s Unemployment Rate Drops to 5.4 Percent in January

Published:

NR No. 25-11
Contact: Loree Levy/Greg Lawson
916-654-9029
mediainquiries@edd.ca.gov

Important Note: Employment data for January 2025 comes from the survey week that included January 12 while February 2025 data will release March 28, 2025. Statistics released today reflect updates to initial 2024 monthly estimates as part of the annual benchmark revision.

Nonfarm employment is unchanged at 18,032,400

SACRAMENTO — California’s unemployment rate dropped to 5.4 percent1 in January 2025 while nonfarm payroll jobs2 remained unchanged from December 2024, according to data released today by the Employment Development Department (EDD) from two separate surveys. January’s job gain follows a post-benchmark, revised job gain of 39,000 for December 2024.

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

  • The job market expansion reached 57 months in January 2025. California gained 3,112,600 jobs since April 2020, averaging 54,607 jobs per month.

  • January 2025 marked the third consecutive month-over decline (-6,400) in unemployed people.

  • Five of California's 11 industry sectors gained jobs in January with Private Education and Health Services (+18,500) showing strength in health-related fields such as General Medicine and Surgical Hospitals, Continuing Care Retirement Communities and Assisted Living Facilities for the Elderly, and Individual and Family Services.

  • Trade, Transportation, & Utilities posted the largest month-over loss (-14,200) with declines in Wholesale Trade, Couriers and Messengers, and Warehousing and Storage.

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. 

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 — Nonfarm jobs in 11 major industries totaled 18,032,400 in January—a zero net gain from December. This followed December’s post-benchmark revision of 97,000 jobs, resulting in a month-over gain of 39,000 jobs in December.
  • Year-over — Total nonfarm jobs increased by 22,400 (0.12 percent increase) from January 2024 to January 2025 and the U.S. had an annual gain of 2,018,000 (1.2 percent increase).

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Major Industries Month-over Change (Dec. 2024–Jan. 2025) Year-over Change (Jan. 2024–Jan. 2025) Total Payroll Jobs as of Jan. 2025

Private Education and Health Services

+18,500 +148,200 3,371,000

Other Services

+1,900 -4,300 595,800
Manufacturing +1,600 -33,400 1,236,500
Government +1,600 +58,300 2,693,700

Leisure and Hospitality

+1,000 -29,500 2,014,400

Mining and Logging

0 -700 18,700
Construction -1,700 -27,600 901,700
Professional and Business Services -2,000 -49,400 2,774,300
Financial Activities -2,800 -21,800 795,600
Information -3,900 -11,700 530,200
Trade, Transportation, and Utilities -14,200 -5,700 3,100,500

Total Farm Jobs — Agriculture industry jobs increased from December by 2,700 to 24,200 in January. Agriculture had 10,300 more farm jobs in January 2025 than January of last year.

Data Trends about Workers in the Economy

Employment and Unemployment in California (Based on a monthly federal survey of 5,100 California households which focuses on workers in the economy)

  • Employed — The number of Californians employed in January was 18,635,600, an increase of 17,600 from December’s total of 18,618,000 and up 69,600 from January 2024.
  • Unemployed — The number of unemployed Californians was 1,069,100 in January, a decrease of 6,400 over the month but up 68,200 compared to January 2024.
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California Labor Force Month-over Change (December 2024 – January 2025) Year-over Change (January 2024 – January 2025)
* Civilian Labor Force (19,704,800) +11,300 +137,800
Total Civilian Employment (18,635,600) +17,600 +69,600
Unemployment (1,069,100) -6,400 +68,200

* Labor force by place of residence, including workers involved in trade disputes.

Unemployment Insurance Claims (Not Seasonally Adjusted)

The following data is from a sample week that includes the 19th of each month:

In related data that figures into the State’s unemployment rate, there were 394,387 people certifying for Unemployment Insurance (UI) benefits during the January 2025 sample week. That’s down from 398,795 people in December and up from 392,541 in January 2024. 46,109 initial claims were processed in the January 2024 sample week—a month-over decrease of 2,906 claims and a year-over decrease of 1,087 claims from January 2024.

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California Unemployment Insurance Claims Month-over Change (December 2024–January 2025) Year-over Change (January 2024 –January 2025)
UI Recipients (394,387) -4,408 +1,846
New UI Claims (46,109) -2,906 -1,087
MONTHLY LABOR FORCE DATA FOR COUNTIES
January 2025 (Preliminary); 2024 Benchmark
NOT SEASONALLY ADJUSTED
COUNTY LABOR FORCE EMPLOYMENT UNEMPLOYMENT RATE
STATE TOTAL 19,703,400 18,610,700 1,092,700 5.5%
ALAMEDA 866,500 826,400 40,000 4.6%
ALPINE 550 510 40 7.1%
AMADOR 14,980 14,050 930 6.2%
BUTTE 92,600 86,800 5,900 6.3%
CALAVERAS 17,590 16,430 1,170 6.6%
COLUSA 11,420 9,380 2,050 17.9%
CONTRA COSTA 582,600 554,900 27,700 4.8%
DEL NORTE 8,930 8,340 600 6.7%
EL DORADO 91,100 86,400 4,600 5.1%
FRESNO 475,800 434,900 40,900 8.6%
GLENN 12,210 11,260 960 7.8%
HUMBOLDT 60,300 56,900 3,400 5.6%
IMPERIAL 73,500 60,300 13,200 17.9%
INYO 8,300 7,890 400 4.8%
KERN 412,700 375,700 3,700 9.0%
KINGS 59,600 53,700 5,900 9.8%
LAKE 26,660 24,520 2,130 8.0%
LASSEN 8,150 7,560 590 7.2%
LOS ANGELES 5,098,100 4,802,700 295,400 5.8%
MADERA 70,420 64,450 5,970 8.5%
MARIN 125,100 120,000 5,100 4.1%
MARIPOSA 6,860 6,370 490 7.1%
MENDOCINO 36,530 34,170 2,360 6.5%
MERCED 122,200 108,800 13,400 11.0%
MODOC 3,070 2,790 280 9.1%
MONO 7,850 7,480 370 4.8%
MONTEREY 215,800 194,100 21,800 10.1%
NAPA 75,400 72,000 3,400 4.5%
NEVADA 48,200 45,800 2,400 4.9%
ORANGE 1,625,800 1,559,500 66,400 4.1%
PLACER 206,370 197,470 8,900 4.3%
PLUMAS 7,350 6,620 730 9.9%
RIVERSIDE 1,193,100 1,129,300 63,800 5.3%
SACRAMENTO 781,200 742,300 38,900 5.0%
SAN BENITO 34,560 32,090 2,470 7.1%
SAN BERNARDINO 1,038,400 984,100 54,300 5.2%
SAN DIEGO 1,660,300 1,584,800 75,500 4.5%
SAN FRANCISCO 510,500 489,900 20,700 4.0%
SAN JOAQUIN 372,300 346,500 25,800 6.9%
SAN LUIS OBISPO 132,400 126,600 5,800 4.4%
SAN MATEO 417,600 401,700 15,900 3.8%
SANTA BARBARA 217,500 205,800 11,700 5.4%
SANTA CLARA 1,061,100 1,015,200 45,900 4.3%
SANTA CRUZ 135,500 126,000 9,500 7.0%
SHASTA 80,800 76,000 4,800 5.9%
SIERRA 1,310 1,220 90 6.9%
SISKIYOU 16,140 14,720 1,420 8.8%
SOLANO 216,800 205,100 11,700 5.4%
SONOMA 246,700 235,600 11,100 4.5%
STANISLAUS 257,600 238,600 19,000 7.4%
SUTTER 45,900 41,440 4,460 9.7%
TEHAMA 26,940 25,050 1,890 7.0%
TRINITY 5,390 5,030 370 6.8%
TULARE 224,200 200,000 24,300 10.8%
TUOLUMNE 21,800 20,530 1,270 5.8%
VENTURA 419,700 398,800 20,900 5.0%
YOLO 111,820 105,050 6,780 6.1%
YUBA 36,020 33,390 2,630 7.3%