What was the California job market like in 2025? Unemployment, salary, layoffs
California experienced significant layoffs and its unemployment remained above 5% for 19 consecutive months, according to the UCLA Anderson School of Management.
But what was the 2025 job market like? And what were the highest paying cities in the state?
Here’s what to know:
What was the California job market like in 2025?
From September 2024 to September 2025, nonfarm jobs increased by 0.3%, a growth of 61,800 jobs, according to the Employment Development Department.
California’s nonfarm jobs expansion has now lasted more than five years with an unemployment rate that has stabilized over the past 12 months, according to the 2025 California Jobs Market Report by the Employment Development Department. The same report
From January to September, California’s civilian labor force grew slowly, but consistently with an average of 22,600 workers per month according to the Bureau of Labor Statistics.
How many California workers were laid off?
In 2025, California recorded the highest number of job cuts in the country, with more than 173,000 layoffs, according to a study by Excite OOH. Californian layoffs have grown 14% from the previous year.
“While the percentage growth is relatively modest, the scale reflects the state’s enormous workforce and ongoing contractions in technology, entertainment, and professional services, where companies have continued to recalibrate after years of rapid expansion,” said Excite OOH in a news release.
The state received WARN notices for a little more than 94,000 workers in California in 2025, according to WARNTracker. These notices only report on organizations in California with 75 or more employees and layoffs of 50 or more workers.
How many Californians are unemployed?
As of September — which is the most recent available data because of the federal shutdown — California unemployment sits at 5.6% while the national unemployment is at 4.4%, according to California’s Employment Development Department. There are 1.1 million unemployed individuals in California as of September.
The state’s unemployment rate has increased by 0.1 percentage points, or 30,300 workers, compared to September 2024.
By race and ethnicity, Black Americans have an unemployment rate of 8.9% and the Hispanic population has a rate of 6.0%. While unemployment for white Californians was 5.4%
What is the average wage in California?
The average weekly earnings in California, as of August, is about $1,364, which is 0.8% lower than the year before, according to the Bureau of Labor Statistics.
That translates to about $72,800 annually, not accounting for taxes.
As of August, the average weekly earnings for workers in California was higher than the national average of $1,249.
What were the top 5 highest paying cities?
Here are the top five highest paying cities in the state, according to ZipRecruiter. These cities pay on average higher than normal hourly or salary wages.
Here are the cities and annual salaries made the list:
1. San Mateo: $81,118
2. San Francisco: $80,976
3. Sunnyvale: $80,272
4. Santa Clara: $79,909
5. Fremont: $79,673
This story was originally published January 2, 2026 at 5:00 AM with the headline "What was the California job market like in 2025? Unemployment, salary, layoffs."
