California Unemployment Holds at 5.1% in September 2026, but Payrolls Lose 9,300 Jobs

CALIFORNIA58 | ECONOMY & JOBS | OCTOBER 18, 2026. California’s latest labor-market report contains two seemingly contradictory signals: the unemployment rate stayed at 5.1% in September, even as employers reported 9,300 fewer nonfarm payroll jobs. Both figures come from the Employment Development Department’s October 16 release, but they measure different things.

Where jobs grew and where they disappeared

According to EDD’s seasonally adjusted employer survey, private education and health services added 8,000 jobs in September. Professional and business services gained 4,000. At the other end of the scale, leisure and hospitality lost 9,600 positions; manufacturing lost 4,000, financial activities 3,800, information 3,200 and construction 1,900. Those changes are statewide estimates, not claims about any single restaurant, hospital or county employer.

California had approximately 18,151,600 nonfarm payroll positions in September. EDD reports a gain of 129,300 jobs over the preceding 12 months, although the September monthly estimate is negative. The agency revised August’s payroll increase downward by 16,300 jobs, leaving a revised August monthly gain of 23,100.

How can unemployment remain unchanged?

The 5.1% unemployment rate is calculated from a household survey about people in the labor force. Employer payroll estimates are collected through a separate business survey. They can move in different directions without either being inherently false. EDD reports 987,600 unemployed Californians in the seasonally adjusted household figures, down about 5,400 from August. Changes in labor-force participation also affect the percentage, so a stable rate is not proof that hiring conditions are identical everywhere.

Do not apply 5.1% to all 58 counties

The EDD release includes county-level, not-seasonally-adjusted labor-market estimates. Those are the appropriate numbers to consult when researching the differences between Alpine, Los Angeles, Kern, San Bernardino or any other county. The 5.1% statewide figure is a seasonally adjusted rate in the main release; local rates use a different seasonal treatment. Ranking counties without explaining this distinction is misleading.

Local context: EDD’s September county rates were 7.9% in Kern County and 5.5% in San Bernardino County. See our Ridgecrest–Trona regional comparison for why those county rates should not be misrepresented as a precise unemployment rate in either town.

EDD payroll jobs infographic: September 2025 18,022,300; August 2026 18,160,900; September 2026 18,151,600 — California payroll jobs, 2025–26. Source: California EDD; click the graphic to open the full original.

Where job seekers can act now

Search real vacancies and training referrals through the official CalJOBS system.
Look up regional employment statistics at EDD Labor Market Information rather than assuming statewide growth reflects the nearest town.
Use EDD Unemployment Insurance for eligibility and claim instructions if your employment changed.
Compare a posted job’s wages, commute and training requirements with actual offers; a statewide sector gain does not guarantee openings in every county.

What’s next? EDD schedules the October 2026 data release for November 20. The September reference week included September 12, so this report should not be described as a live October job count. California58 will use the official county tables to report regional differences separately.

Primary source: California EDD, “California’s Unemployment Rate Holds Steady at 5.1% in September,” October 16, 2026. Figures are preliminary survey estimates, subject to revision.