Overview

California's job market showed positive signs in March, with the state adding 28,700 payroll jobs and reducing the unemployment rate to 5.3%. This development comes despite notable layoffs in the tech sector.

The job growth was primarily attributed to significant increases in the health services and private education sectors, although the figures were somewhat influenced by the return of workers from a recent strike at Kaiser Permanente.

Key details

  • California added 28,700 payroll jobs in March.
  • The unemployment rate decreased to 5.3%.
  • The health services and private education sectors contributed nearly 28,000 jobs to the total.
  • The job growth was partly due to the return of Kaiser Permanente workers who had been on strike.
  • Employment also increased in long-term care, home healthcare, and practitioners’ offices.
  • California's unemployment rate fell from 5.4% in January and February.
  • The state’s unemployment rate was last at 5.3% in May 2025.
  • Health services and private education have gained 160,400 workers since March 2025.
  • Small job gains were recorded in the government, construction, and financial sectors.
  • Despite job growth, California's unemployment rate remains higher than the national average of 4.3%.
  • In March, the nation added 178,000 jobs.
  • Michael Bernick, a former director of the state jobs agency, noted healthcare's significant role in job growth post-pandemic.

Context

The job market in California continues to experience fluctuations, particularly influenced by sector-specific trends such as layoffs in technology and the ongoing recovery from the pandemic.

What happens next

As California's economy evolves, monitoring the job market's response to ongoing changes in various sectors will be crucial for understanding future employment trends.

What we don't know yet

Details regarding the specific impact of tech layoffs on overall employment and how long-term trends will shape the job market are not confirmed.