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California’s Unemployment Rate Drops to 5.4% for January 2026

Employers Added 93,500 Jobs

Important Note: The employment data for the month of January 2026 comes from the survey week that included January 12. February 2026 data will be released on April 17. Statistics released today reflect updates to initial 2025 monthly estimates as part of the annual benchmark revision.

SACRAMENTO — California’s unemployment rate came in at 5.4%1 in January 2026, a decrease from the December 2025 rate of 5.5%. In addition, the State’s employers added 93,500 nonfarm payroll jobs2. These recent data points released by the Employment Development Department (EDD) come from two separate surveys. In addition, as a result of annual benchmark revisions updating past estimates, California’s job loss of 11,100 in 2025 was revised to a gain of 56,600 while the nation’s estimated year-over gain of 584,000 jobs was revised down to 116,000 jobs – a decline of 468,000 jobs in 2025.

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

  • California’s unemployment rate declined by 0.1 percentage point over the month, matching the national month-over change. Year-over, the State’s unemployment rate has held steady, while the national rate has increased by 0.3 percentage points over the same timeframe.
  • January’s month-over job gain (+93,500) was the largest since January 2024. The state’s jobs accounted for more than 74 percent of the nation’s gain of 126,000 jobs in January 2026.
  • January marked the third consecutive month that unemployment has decreased in California, with the largest month-over unemployment decrease since August 2022.
  • Eight of California's 11 industry sectors gained jobs in December, with Private Education and Health Services (+31,800) showing gains for the 27th consecutive month, driven by California’s aging population. The industry posted gains in Offices of Physicians, Home Health Care Services, General/Medical Surgical Hospitals, and Child Day Care Services.
  • Information (-1,400) experienced the largest month-over loss due to larger-than-expected declines in Motion Picture and Video Industries, Software Publishers, and Web Search Portals, and Other Information Services.

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 — Total nonfarm jobs in 11 major industries totaled 18,156,000 in January – a gain of 93,500 from December. This followed December’s post-benchmark revision of 41,300 jobs, resulting in a month-over December gain of 3,500 jobs.
  • Year-over — Total nonfarm jobs increased by 131,200 (1% increase) from January 2025 to January 2026 compared to the U.S. year-over gain of 130,000 jobs (0.1% increase).

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Major Industries Month-over Change
(Dec. 2025 - Jan. 2026)
Year-over Change
(Jan. 2025 - Jan. 2026)
Total Payroll Jobs
as of Jan. 2026

Private Education and Health Services

+31,800 +192,100 3,579,600

Leisure and Hospitality

+22,200 +37,300 2,053,400

Professional and Business Services

+13,900 +8,700 2,766,400

Other Services

+11,400 +14,700 606,700

Trade, Transportation, and Utilities

+6,700 -6,900 3,057,300

Construction

+6,100 -15,400 886,900

Manufacturing

+2,700 -16,600 1,215,800

Financial Activities

+1,500 -4,700 790,100

Mining and Logging

-100 -400 18,200

Government

-1,300 -75,200 2,661,000

Information

-1,400 -2,400 520,600

Total Farm Jobs — Agriculture industry jobs decreased from December by 22,100 to 406,800 jobs in January. Agriculture had 11,700 more farm jobs in January 2026 than it did in January 2025.

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 January was 18,779,800, down 5,100 from December’s total and up 77,300 compared to January of last year.
  • Unemployed The number of unemployed Californians was 1,082,300 in January, a decrease of 10,900 over the month, but an increase of 20,500 from January 2025.
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California Labor Force Month-over Change (Dec. 2025 – Jan. 2026) Year-over Change (Jan. 2025 – Jan. 2026)
* Civilian Labor Force (19,862,200) -15,800 +98,000
Total Civilian Employment (18,779,800) -5,100 +77,300
Unemployment (1,082,300) -10,900 +20,500

* 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 375,219 people certifying for Unemployment Insurance (UI) benefits during the January 2026 sample week. That compares to 386,980 people in December and 394,387 people in January 2025. Concurrently,43,344 initial claims were processed in the January 2026 sample week, which was a month-over decrease of 4,148 claims from December and a year-over decrease of 2,765 claims from January 2025.

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California Unemployment Insurance Claims Month-over Change (Dec. 2025 – Jan. 2026) Year-over Change (Jan. 2025 – Jan.  2026)
UI Recipients (375,219) -11,761 -19,168
New UI Claims (43,344) -4,148 -2,675
MONTHLY LABOR FORCE DATA FOR COUNTIES
January 2026 (Preliminary); 2024 Benchmark
NOT SEASONALLY ADJUSTED
COUNTY LABOR FORCE EMPLOYMENT UNEMPLOYMENT RATE
STATE TOTAL

19,622,900

18,537,900

1,085,000

5.5%

ALAMEDA

860,200

820,300

39,900

4.6%

ALPINE

590

550

40

6.6%

AMADOR

14,700

13,740

960

6.5%

BUTTE

89,600

83,700

5,900

6.6%

CALAVERAS

17,380

16,190

1,200

6.9%

COLUSA

11,220

9,220

2,000

17.8%

CONTRA COSTA

577,200

549,700

27,500

4.8%

DEL NORTE

9,250

8,600

650

7.0%

EL DORADO

89,900

85,200

4,700

5.2%

FRESNO

472,700

430,900

41,900

8.9%

GLENN

11,670

10,720

950

8.1%

HUMBOLDT

59,500

56,100

3,400

5.6%

IMPERIAL

74,400

60,500

13,900

18.6%

INYO

8,230

7,810

420

5.1%

KERN

408,700

371,300

37,500

9.2%

KINGS

59,400

53,400

5,900

10.0%

LAKE

26,530

24,350

2,190

8.2%

LASSEN

8,260

7,620

630

7.6%

LOS ANGELES

5,112,600

4,833,400

279,200

5.5%

MADERA

69,900

63,900

6,000

8.6%

MARIN

122,400

117,300

5,100

4.2%

MARIPOSA

6,720

6,200

520

7.7%

MENDOCINO

36,030

33,680

2,350

6.5%

MERCED

123,900

110,800

13,100

10.6%

MODOC

2,990

2,710

280

9.2%

MONO

8,160

7,810

350

4.3%

MONTEREY

208,200

186,200

22,000

10.6%

NAPA

72,000

68,500

3,500

4.9%

NEVADA

47,190

44,820

2,360

5.0%

ORANGE

1,606,200

1,540,100

66,100

4.1%

PLACER

207,900

198,700

9,200

4.4%

PLUMAS

7,250

6,480

770

10.6%

RIVERSIDE

1,197,300

1,131,500

65,800

5.5%

SACRAMENTO

782,800

742,200

40,600

5.2%

SAN BENITO

34,200

31,700

2,500

7.2%

SAN BERNARDINO

1,035,300

979,900

55,400

5.3%

SAN DIEGO

1,650,300

1,573,200

77,200

4.7%

SAN FRANCISCO

499,600

479,400

20,300

4.1%

SAN JOAQUIN

374,800

349,100

25,700

6.8%

SAN LUIS OBISPO

130,500

124,500

6,000

4.6%

SAN MATEO

408,600

393,100

15,500

3.8%

SANTA BARBARA

218,400

206,400

12,000

5.5%

SANTA CLARA

1,024,700

982,000

42,700

4.2%

SANTA CRUZ

135,600

126,000

9,600

7.1%

SHASTA

81,700

76,900

4,800

5.9%

SIERRA

1,340

1,250

90

6.5%

SISKIYOU

15,880

14,360

1,510

9.5%

SOLANO

218,300

206,300

12,000

5.5%

SONOMA

244,000

232,900

11,100

4.6%

STANISLAUS

253,400

234,600

18,900

7.4%

SUTTER

45,600

41,000

4,600

10.1%

TEHAMA

27,120

25,320

1,800

6.6%

TRINITY

5,450

5,080

370

6.8%

TULARE

220,300

195,800

24,500

11.1%

TUOLUMNE

21,570

20,300

1,260

5.9%

VENTURA

416,700

395,900

20,800

5.0%

YOLO

112,400

105,400

7,100

6.3%

YUBA

36,100

33,400

2,700

7.4%