California continues to see positive movement in its labor market, with the latest data showing a decline in unemployment claims and a drop in the unemployment rate. Here’s a detailed look at the most recent statistics and what they mean for the state’s workforce.
Recent Decline in Unemployment Claims
During March 2025, California processed 40,993 initial unemployment insurance (UI) claims in the sample week, marking a decrease of 1,662 claims from February and a slight year-over-year decrease of seven claims compared to March 2024.
This downward trend in new claims indicates that fewer Californians are seeking unemployment benefits, suggesting ongoing improvement in the state’s job market.
Statewide Unemployment Rate Drops
California’s unemployment rate dropped to 5.3% in March 2025, down 0.1 percentage points from the previous month. This marks the fifth consecutive month of declining unemployment, with the number of unemployed Californians falling by 7,000 over the month.
Over the past year, however, the total number of unemployed persons is up by 50,100, reflecting some ongoing labor market challenges.
Labor Force and Employment Trends
- The civilian labor force in California grew by 7,600 from February to March, reaching 19,713,800.
- Total civilian employment increased by 14,600 to 18,659,600.
- The number of unemployed Californians stood at 1,054,200 in March 2025.
Despite a net loss of 11,600 nonfarm payroll jobs in March, California’s job market remains resilient, having added 46,500 jobs year-over-year between March 2024 and March 2025.
Unemployment Insurance Claims Data
- Total initial UI claims filed in March 2025: 183,423.
- Total weeks paid: 1,781,627.
- Seasonally adjusted initial claims: 193,050.
In the sample week, 424,213 people were certifying for UI benefits, up from 407,881 in February but down from 446,130 in March 2024.
County-Level Unemployment Rates
Unemployment rates vary significantly across California counties. For example:
- Los Angeles County: 5.6%
- Orange County: 3.8%
- Fresno County: 9.0%
- Imperial County: 16.4% (one of the highest in the state).
These disparities highlight the uneven recovery and ongoing challenges in certain regions.
National Context
On a national scale, the insured unemployment rate for the week ending April 12, 2025, stood at 1.2%, unchanged from the previous week. California’s insured unemployment rate was higher, at 2.3% for the same period, reflecting some regional differences in labor market conditions.
Conclusion
California’s labor market showed encouraging signs last week, with a notable decline in initial unemployment claims and a drop in the statewide unemployment rate to 5.3%. While some regions and sectors continue to face challenges, the overall trend suggests steady improvement.
As the state adds jobs and more people return to work, ongoing monitoring of county-level data and industry trends will be crucial for understanding the full picture of California’s economic recovery.
Source:
[1] https://labormarketinfo.edd.ca.gov/LMID/UI_Claims.html
[2] https://edd.ca.gov/en/about_edd/news_releases_and_announcements/unemployment-march-2025/
[3] https://edd.ca.gov/en/newsroom/facts-and-stats/dashboard/
[4] https://labormarketinfo.edd.ca.gov/file/lfmonth/la$pds.pdf
[5] https://www.dol.gov/ui/data.pdf
[6] https://www.haver.com/articles/unemployment-insurance-claims-decline-unexpectedly-in-latest-week
[7] https://fred.stlouisfed.org/series/CACCLAIMS
[8] https://fred.stlouisfed.org/series/CAICLAIMS
[9] https://www.reuters.com/business/us-weekly-jobless-claims-increase-moderately-amid-low-layoffs-2025-04-24/
[10] https://oui.doleta.gov/unemploy/claims.asp
[11] https://www.bls.gov/schedule/news_release/laus.htm
[12] https://www.reuters.com/markets/us/us-weekly-jobless-claims-decline-more-than-expected-2025-01-30/
[13] https://www.dol.gov/newsroom/releases/ETA?lang=fil
[14] https://www.reuters.com/markets/us/us-weekly-jobless-claims-rise-marginally-2025-04-10/
[15] https://calmatters.org/economy/2025/01/no-solutions-from-leaders-fr-unemployment-benefits-fund/
[16] https://calbudgetcenter.org/resources/revitalizing-unemployment-insurance-in-california/
[17] https://www.bls.gov/news.release/laus.nr0.htm
[18] https://www.cmegroup.com/education/events/econoday/2025/04/feed627439.html
[19] https://tradingeconomics.com/united-states/jobless-claims