The Bay Area didn’t lose jobs in 2025 after all.
While the Bay Area job market may have kicked off 2026 with a surge of hiring, data shows 2025 produced a more positive employment picture in the region and California than state labor officials first reported, according to revisions of initial estimates.
After first reporting that the region lost 20,000 jobs in 2025, the latest yearly revision from the state Employment Development Department shows the Bay Area gained 27,900 jobs – 47,900 more than previously thought.
“The upward revisions reinforce that the Bay Area economy was on much stronger footing in 2025 than initially reported,” said Abby Raisz, vice president of research for the Bay Area Council Economic Institute. “What appeared to be a year of job losses now looks more like modest but real growth.”
Similarly, California added 56,600 jobs during 2025, according to the revised EDD estimate. The state labor agency first reported the state lost 11,200 jobs last year. In total, California gained 67,800 more jobs in 2025 than initially estimated.
“This is good news, especially because these gains are in sharp contrast to the large downward revisions in the national data,” said Steve Levy, director of the Palo Alto-based Center for Continuing Study of the California Economy.
The revisions arrive on the heels of an EDD report on April 3 that showed the Bay Area and California both experienced strong job gains in January.
The region added 15,000 jobs in January — 4,500 in the South Bay, 2,800 in the East Bay and 5,700 in the San Francisco-San Mateo region.
California gained 93,500 jobs in January. The statewide unemployment rate improved to 5.4% compared with 5.5% in December.
“The numbers show that AI isn’t cannibalizing us, at least not so far,” said Russell Hancock, president of Joint Venture Silicon Valley, a San Jose-based think tank. “They also show resilience in the midst of a topsy-turvy external environment.”
The positive revisions were particularly pronounced in the South Bay, which had 20,800 more jobs than original estimates. The San Francisco-San Mateo region had 11,500 more and the East Bay had 10,700 additional positions.
With the changes, the Bay Area accounted for 71% of the upward revision for the entire state. The South Bay alone accounted for 31% of additional jobs reported for all of California for 2025.
“There were big upward job revisions in Silicon Valley, San Francisco-San Mateo-Redwood City, and the East Bay, suggesting the AI investment boom is helping to lift all boats in some of the key tech hubs in the Bay Area,” said Scott Anderson, chief U.S. economist for BMO Capital Markets.
Some experts, however, warn that the improved hiring picture for the Bay Area has not necessarily bolstered the fortunes of job seekers to the same extent as the overall job market.
Michael Bernick, an employment attorney with law firm Duane Morris and a former director of the state EDD, is a volunteer job coach for people seeking to be hired into new roles in the region.
Despite years of experience and training, Bernick said some applicants are finding it harder and harder to land permanent positions.
“For the jobs they are applying for, employers are receiving 100 applicants or more in most cases,” Bernick said. “For any decent-paid white-collar job in the Bay Area, job seekers are competing against tens, if not 100s, of other applicants. This is true throughout the white-collar fields, not only in tech.”
Some experts said it is still uncertain whether the sturdy job market that has emerged in the region over the past several months will continue to play out.
“The Bay Area’s labor market resilience will be tested again this year as new energy and inflation shocks hit consumers and businesses from the war in Iran,” Anderson said. “We can take some comfort in knowing the region’s labor market has a little more cushion to give before it breaks.”