California’s unemployment rate rises slightly to 5.1 percent in December 2023

Important Note: The employment data for the month of December 2023 is taken from the survey week including December 12. Data for January 2024 is scheduled for release on March 8, 2024 due to the annual benchmarking process on labor data.

Employers added 23,400 nonfarm payroll jobs

SACRAMENTO – California’s unemployment rate increased to 5.1 percent 1 in December 2023 despite the state’s employers adding 23,400 nonfarm payroll jobs 2 to the economy, according to data released today by the Employment Development Department (EDD) from two surveys.

The California unemployment rate was 5.1 percent in December 2023, up 0.2 percent from November 2023’s rate of 4.9 percent.

California payroll jobs totaled 18,180,700 in December 2023, up 23,400 from November 2023 and up 311,000 from December 2022

California's Labor Market, by the Numbers.

California’s December job gain accounted for 10.8 percent of the 216,000 overall job gain for the nation.
California’s 23,400 December nonfarm job gain contributes to 12 consecutive months of job gains in 2023 after recording its last net job loss in December of 2022.
Six of California's 11 industry sectors gained jobs in December with Private Education & Health Services (+13,200) leading in gains thanks to above-average increases in Nursing Care Facilities and Individual & Family Services.
Government (+8,100) experienced job increases in both City Government and Special Districts with local government jobs within the state now showing seven consecutive months of increases.
Leisure & Hospitality (+7,100) saw job gains in the Accommodation industry group, and the Limited-Service Restaurants and Other Eating Places industry groups.
Month-over losses in Professional & Business Services (-3,800) were largely due to reductions in Employment Services.

_{1. The unemployment rate comes from a separate federal survey of 5,100 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

Total Nonfarm Payroll Jobs (Comes from a monthly survey of approximately 80,000 California businesses that estimates jobs in the economy – seasonally adjusted)

Month-over – Total nonfarm jobs in California’s 11 major industries totaled 18,180,700 in December – a net gain of 23,400 from November. This followed a downward revised (-1,200) month-over gain of 8,100 jobs in November.
Year-over – Total nonfarm jobs increased by 311,000 (a 1.7 percent increase) from December 2022 to December 2023 compared to the U.S. annual gain of 2,697,000 jobs (a 1.7 percent increase).