California is a national unemployment leader, no matter how you do the math.<\/p>\n
But what does that really say about the state of the state\u2019s job market?<\/p>\n
My trusty spreadsheet<\/a> reviewed a spin on the traditional jobless rate to check on California\u2019s standing. This \u201cU-6\u201d measure<\/a>, as federal job counters call it, offers a broader view of workers\u2019 struggles to find decent jobs.<\/p>\n This yardstick counts not only people who are actively looking for jobs \u2014 the basis for the traditional jobless tally \u2014 but it also includes \u201cdiscouraged\u201d folks who want a job but haven\u2019t looked recently. Plus, it counts the \u201cunderemployed\u201d \u2013 workers with part-time jobs who really want a full-time gig.<\/p>\n Some folks say this is the \u201creal\u201d unemployment rate, but for this discussion, let\u2019s call it the worker disappointment rate.<\/p>\n As of the third quarter of 2025, the latest stats available, California\u2019s disappointment rate was 10%. That\u2019s the highest in the nation and well above the national median of 7.3%.<\/p>\n After California came Nevada at 9.6% and Michigan at 9.3%; the lowest disappointment rate was found in South Dakota at 4.6%, followed by Alabama and Vermont at 5.4%.<\/p>\n Note that this job dissatisfaction measure wasn\u2019t exactly kind to California\u2019s economic arch-rivals either. Texas\u2019 7.9% rate ranked 17th-highest, while Florida\u2019s 7.4% ranked No. 25.<\/p>\n On the decline<\/p>\n The good news is that recent worker disappointment runs well below the 20-year average \u2013 statewide and nationally.<\/p>\n The bad news for Californians is that the state has long ranked high on this chart. California\u2019s average rate of 13.4% since 2005 has tied Nevada for No. 1 among the states.<\/p>\n Nationally, the disappointment rate ran at 10%. The 20-year lows were found in North Dakota at 5.8%, South Dakota at 6.4%, and Nebraska at 6.7%.<\/p>\n And California\u2019s rivals? Texas\u2019 9.7% ranked No. 31, and Florida\u2019s 10.9% was No. 13.<\/p>\n Not unexpected<\/p>\n California\u2019s lofty disappointment grade mirrors its standing on the traditional unemployment scorecard<\/a>, which is derived from the same household surveys.<\/p>\n A short-term lens shows California\u2019s 5.5% jobless rate for 2025\u2019s third quarter ranked second among the states while the national rate was 4%. Only the District of Columbia at 6.5% was higher.<\/p>\n The lowest jobless rates were in South Dakota and Hawaii, at 2.1%. The rivals? Texas\u2019 4.2% ranked No. 21 and Florida\u2019s 4% ranked No. 26.<\/p>\n Looking back over two decades, again we\u2019re seeing lower rates \u2013 with California still high on the scorecard.<\/p>\n California\u2019s 7.1% average rate was above the national median of 5.6% and was topped only by Nevada\u2019s 7.5% among the states.<\/p>\n The lowest was in North Dakota at 3%, South Dakota at 3.2% and Nebraska at 3.3%. The rivals? Texas\u2019 5.4% ranked No. 29, as Florida\u2019s 5.8% was No. 21.<\/p>\n Bad job market?<\/p>\n By jobless counts, California looks like a bad place for workers.<\/p>\n