California’s unemployment rate rose to 5.4% in June, marking the highest rate in the nation alongside Nevada, according to the latest data from the Employment Development Department (EDD). This slight increase of 0.1 percentage point from the previous month comes as the state experienced a net loss of 6,100 jobs.
The decline in employment was largely driven by significant layoffs in the business and professional services sector, which saw 9,900 job cuts. Despite these losses, some sectors experienced growth. Health care and government sectors added jobs, helping to offset declines in other areas.
San Francisco, in particular, saw its unemployment rate rise by 0.7 percentage points, reaching 4.2% in June. This increase reflects broader trends within the state as various industries adjust to changing economic conditions.
The data, which was collected during the survey week including June 12, also highlighted an increase in unemployment insurance claims. During the June sample week, 46,629 initial claims were processed, marking a rise of 5,393 claims from May and an increase of 1,467 claims from June 2024.
The EDD’s figures underscore ongoing challenges in California’s labor market, with the state now preparing for the release of July’s employment data on August 15, 2025. For those recently unemployed, particularly federal employees, unemployment benefits may be available to provide temporary financial support.
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