(FOX40.COM) — California’s unemployment rate ticked down to 5.4% in January as employers added 93,500 jobs, signaling continued strength in the state’s labor market, according to new data released Friday by the California Employment Development Department.
The slight drop from December’s 5.5% rate marks the third consecutive monthly decline in unemployment and the largest month-over-month job gain in a year. State officials said that the growth accounted for more than half of all jobs added nationwide in January.
Across the FOX40 viewing area in Northern California, unemployment rates remained varied, reflecting regional differences in job recovery.
In the press release, the report showed that Sacramento County reported a 5.2% unemployment rate, slightly below the state average, while nearby Placer County came in lower at 4.4%.
However, some surrounding countries continued to see higher employment. San Joaquin County posted a 6.8% rate, while Yolo County was at 6.3% and Stanislaus County reached 7.4%, highlighting ongoing economic disparities in the Central Valley.
Statewide, the report showed that the job gains were driven largely by the private education and health services sector, which added 31,800 jobs and extended its growth streak to 27 consecutive months.
Officials with CA EDD stated that the increase is tied in part to demand from California’s aging population, with growth in hospitals, physician offices and home health care.
Meanwhile, authorities said that the information sector saw the biggest losses, shedding 1,400 jobs due to declines in film production, software publishing and web-based services, according to state officials.
Despite the overall improvement, the number of unemployed Californians remained elevated compared to a year ago. The report showed that about 1.08 million people were out of work in January, even as initial unemployment claims declined both month-over-month and year-over-year.
Authorities stated that in agriculture, jobs dropped sharply by 22,100 positions in January, a typical seasonal decline, though employment in the sector remains higher than this time last year.
The latest figures also include revised data showing California’s job market performed better in 2025 than previously estimated, with a net gain of 56,600 jobs instead of an earlier reported loss.
Nationally, the unemployment rate change mirrored California’s monthly dip, though revised figures show slower job growth across the U.S. than initially reported.
Updated labor market data for February is expected to be released later this month, EDD officials said in a press release.