California Labor Report – October 2026
Each month, Star Staffing, a Northern California-based staffing agency, compiles new data and shares expert insights on California’s hiring landscape. This labor report covers the most recent employment data from September.
A Note from Star Staffing’s CEO
California’s unemployment rate held steady at 5.1% in September, and the number of unemployed Californians fell for the 10th consecutive month. That’s 106,500 fewer people out of work over that stretch. And while the state lost 9,300 jobs over the month, one bright spot stood out: the professional & business services sector added 4,000 jobs, driven by growth in employment services. That’s about 30% more than we typically see in September.
Closer to home, California’s agriculture industry is up 14,500 jobs year over year as harvest season wraps up across our region. And with retailers planning leaner seasonal teams this holiday season, a flexible staffing partner can make all the difference.
As always, if you need hiring support (for the holidays or otherwise!), Star Staffing is here to connect you with the right talent at the right time. Reach out to us.
We look forward to digging into next month’s numbers. Until then, check out some of our latest articles: Temp Workers Are the Secret to Finishing Year-End Projects and 25+ Work-Appropriate Halloween Costumes (always a fun topic).
– Lisa Lichty, Owner & CEO
Included in this Report
California Labor Market Highlights
Statewide: 5.1% (seasonally adjusted)
MoM: same
YoY: down 0.4%
California Highlights:
- California’s unemployment rate held steady at 5.1% in September 2026, unchanged from last month and down from 5.5% a year ago. (EDD latest data)
- Month-over-month: California lost 9,300 nonfarm jobs in September. August’s total was also revised down by 16,300 jobs, for a revised August gain of 23,100.
- Year-over-year: Nonfarm employment rose by 129,300 jobs (+0.72%) from September 2025 to September 2026, more than double the nation’s year-over-year job growth rate (+0.31%).
- Four of California’s 11 industry sectors added jobs in September, led by Private Education & Health Services (+8,000) and Professional & Business Services (+4,000), the latter driven by growth in employment services. Leisure & Hospitality saw the largest losses (-9,600), which the EDD says may reflect consumer caution around discretionary spending.
- September marked the state’s 10th consecutive monthly decline in unemployed Californians (-5,400), for a total of 106,500 fewer unemployed people over that span.
- Farm jobs rose 1,100 in September, up 14,500 from September 2025.
Around the U.S.:
- Unemployment rate: The national unemployment rate was little changed at 4.2%, up slightly from 4.1% in August. (BLS Employment Situation, September 2026)
- Nonfarm payrolls rose by just 29,000 in September, well below expectations of around 90,000. July and August were also revised down by a combined 60,000 jobs. Health care led gains (+17,000).
- 32% of small business owners reported job openings they could not fill in September,* down 3 points from August but still 8 points above the historical average, per the NFIB’s latest Jobs Report.
- 51% of small business owners reported hiring or trying to hire, down 5 points from August.
*Note: If you, too, are struggling with filling positions at your company, reach out to us. We’ve got incredible candidates within reach.
This Month’s Hiring & Work Culture News
- Retailers are planning another lean holiday hiring season, with Challenger, Gray & Christmas projecting about 450,000 seasonal retail hires, down 2.5% from last year. (Retail Dive)
- Warehouses are the exception: Amazon plans to hire more than 300,000 workers across its fulfillment and delivery network this holiday season, up from 250,000 last year, at an average of $20 an hour. (The Next Web)
- For ag employers: Gov. Newsom signed two farm labor bills that set a $19.75 minimum wage for certain agricultural workers and double bond requirements for farm labor contractors. (Western Livestock Journal)
More From the Team at Star Staffing:
Here are a few other articles you might like.
- 3 Powerful Benefits of Using a Staffing Firm for Contingent Hiring
- Wage-and-Hour Compliance Is Still the #1 Hidden Risk for California Employers
- What to Look for in a Forklift Operator
Northern California Unemployment Rates by County
*Note: Not seasonally adjusted. Source: EDD, September 2026.
Alameda County: 4.7%
Alameda, Oakland, Hayward, Berkeley, San Leandro, Livermore, Pleasanton, Dublin
Marin County: 4.3%
Larkspur, Mill Valley, Novato, San Rafael
Napa County: 4.2%
Napa, Yountville, St. Helena, Calistoga, American Canyon, Angwin
Sacramento County: 5.1%
Sacramento, Elk Grove, Rancho Cordova, Folsom, Citrus Heights, Fair Oaks
San Joaquin County: 6.2%
Stockton, Lodi, Tracy, Manteca, Ripon, Lathrop
Sonoma County: 4.3%
Sonoma, Santa Rosa, Petaluma, Healdsburg, Rohnert Park, Sebastopol, Windsor, Bodega Bay
Solano County: 5.3%
Fairfield, Vacaville, Vallejo, Benicia, Suisun City, Dixon, Rio Vista
Stanislaus County: 6.6%
Ceres, Modesto, Oakdale, Patterson, Riverbank, Salida, Turlock
Yolo County: 5.5%
Davis, West Sacramento, Woodland
Note: For Southern California unemployment rates, see edd.ca.gov.
Don’t forget to sign up to receive our monthly labor report in your inbox as soon as it launches. Newsletter subscribers get access to special reports, including annual recaps, extra California salary data, and hiring advice — don’t miss out!
Star Staffing is a woman-owned, award-winning recruiting and temp hiring firm with branch locations throughout California.