California Labor Report – May 2026
Each month, Star Staffing, a Northern California-based staffing agency, compiles new data and shares expert insights on the state of hiring in California. This labor report covers the most recent employment data from April 2026.
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A Note from Star Staffing’s CEO
We are back in business with monthly releases of California and US data. Here in the Golden State, April’s unemployment rate held steady month-over-month and was revised slightly downward from February (to 5.3% from 5.4%).
April’s job loss number — down 3,300 nonfarm jobs — looks discouraging at first glance, but as hiring experts in Northern California, we’ve learned to look at the big picture, too. California has added nearly 100,000 jobs since January, the unemployment rate held steady at 5.3%, and March’s figures were revised upward by almost 9,000 jobs after the fact.
Perhaps most telling: 34% of small business owners couldn’t fill open positions in April, and over half reported trying to hire (see below for more). The talent gap remains real, and we’re here to help Northern California employers navigate it.
As always, if you’re currently in need of hiring support, Star Staffing is here to connect you to the right talent for high-demand industries and roles. Reach out to us.
We look forward to digging into the new numbers next month. Until then, take a look at the articles we published this month: 7 Ways to Support Mental Health in Your Workplace (this month is Mental Health Month), Wage-and-Hour Compliance Is Still the #1 Hidden Risk for California Employers and 4 Things We Look for in a Forklift Operator Candidate (And Why It Matters).
– Lisa Lichty, Owner & CEO
Included in this Report
- California labor highlights (unemployment rates, industry details, etc.)
- This month’s work culture news
- Detailed Report: California unemployment rates by county
- California labor law news and policy changes (if applicable)
- Great reads and resources
California Labor Market Highlights
Statewide: 5.3% (seasonally adjusted)
MoM: Same
YoY: down -0.1%
California Highlights:
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California’s unemployment rate held steady at 5.3% in April 2026, unchanged from March. This marks a 0.1 percentage-point improvement from February’s 5.4% and represents a slight year-over-year decline as well. (California still currently holds the second-highest unemployment rate in the nation, behind only Washington, D.C.)
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Month-over: Total nonfarm jobs in California came in at 18,159,700 in April — a loss of 3,300 jobs from March.
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Year-over: Total nonfarm employment rose by 101,500 jobs (0.56%) from April 2025 to April 2026. For comparison, the U.S. added 251,000 jobs year-over-year (0.16%), meaning California is outpacing national employment growth on a percentage basis.
Around the U.S.:
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Unemployment rate: The national unemployment rate held steady at 4.3% in April 2026 — unchanged from March and little changed from April 2025. Approximately 7.4 million Americans were unemployed.
- 34% of small business owners reported job openings they could not fill, up 2 points from March and the highest level since June 2025, according to the NFIB. Here are a couple of quotes from NFIB members in California:
- “In our rural northern California area, qualified/skilled/knowledgeable help is nonexistent. Unskilled is nonexistent.” – Retail, CA
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- “It’s impossible to find good mechanics. We did not have this problem twenty years ago. Also, our competitors are having the same problem of finding people with automotive skills.” – Services, CA
Star note: If you, too, are struggling with filling positions at your company, reach out to us. We’ve got incredible candidates within reach.
Hiring & Work Culture News:
- The talent war we aren’t prepared for (Fast Company). Are today’s companies hiring for the wrong skills? According to Fast Company, the scarcest talent in an AI-driven economy will be humans who can lead. A sharp read for any manager who has tried to hire “AI skills” as a checkbox — and found the results underwhelming.
- “Gen Z doesn’t want your full-time job. They want several part-time roles, and it’s reshaping the entire workforce,” via Fortune.
- “These laws will change how 2026 works,” via Fast Company. This piece has been in circulation since January (and has now appeared in my inbox a few times), but it’s attracting renewed attention as implementation deadlines approach. If you haven’t stumbled on it, now is the time to give it a read.
More From the Team at Star Staffing:
Here are a few of the articles we published on hiring trends and California labor last month.
Northern California Unemployment Rates by County
*Note: Not seasonally adjusted.
Alameda County: 4.1%
Alameda, Oakland, Hayward, Berkeley, San Leandro, Livermore, Pleasanton, Dublin
Marin County: 3.7%
Larkspur, Mill Valley, Novato, San Rafael
Napa County: 4.5%
Napa, Yountville, St. Helena, Calistoga, American Canyon, Angwin
Sacramento County: 4.5%
Sacramento, Elk Grove, Rancho Cordova, Folsom, Citrus Heights, Fair Oaks
San Joaquin County: 6.1%
Stockton, Lodi, Tracy, Manteca, Ripon, Lathrop
Sonoma County: 4.0%
Sonoma, Santa Rosa, Petaluma, Healdsburg, Rohnert Park, Sebastopol, Windsor, Bodega Bay
Solano County: 4.7%
Fairfield, Vacaville, Vallejo, Benicia, Suisun City, Dixon, Rio Vista
Stanislaus County: 6.8%
Ceres, Modesto, Oakdale, Patterson, Riverbank, Salida, Turlock
Yolo County: 5.3%
Davis, West Sacramento, Woodland
Note: For Southern California unemployment rates, see edd.ca.gov.
California Labor Law/Policy Changes (2026)
Minimum Wage Increase
The state’s minimum hourly wage increased to $16.90/hour as of January 1, 2026 (up from $16.50/hour in 2025). This hourly increase also affects the minimum salary requirements for full-time exempt employees. As of January 1, 2026, the minimum salary for a full-time exempt employee is $70,304 per year. Read our full report here.
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Star Staffing is a woman-owned, award-winning recruiting and temp hiring firm with 6 branch locations throughout California.