Each month, Star Staffing, a 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 December 2024 (released in late January).
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A Note from Star Staffing’s CEO
Welcome to 2025! Let’s make sure we make the most of 2025 by paying close attention to the labor market as it is bound to be an interesting year.
At the end of 2024 and beginning of 2025, California’s labor market continues to shift in response to economic pressures, evolving workforce expectations, and industry-specific demands. Looking ahead, forecasts suggest that California’s economy is poised to outpace national growth in 2025 and 2026, driven by sectors such as health and education services. However, the state continues to grapple with a high cost of living, particularly in housing, which poses challenges for both employers and the workforce. Additionally, recent natural disasters, including devastating wildfires in Los Angeles, have further strained resources and could impact economic stability. In this dynamic environment, staying informed and adaptable is crucial for businesses aiming to thrive in California’s labor market.
As we move forward, businesses must continue to take a proactive approach to workforce planning, ensuring they attract and retain top talent in an increasingly dynamic labor environment. From understanding shifts in job availability to aligning with employee expectations around flexibility and career growth, staying informed will be key to building a resilient and agile organization. By keeping a close watch on these developments, companies can position themselves to not only meet current demands but also thrive in the future of work.
– 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: 5.5%
MoM: Up 0.1% compared to November 2024
YoY: Up 0.4% compared to December 2023
Other California Highlights:
- California added 15,000 jobs last month, a higher rate than in November 2024 (when CA added 11,000 jobs). (Source: edd.ca.gov)
- For the 10th straight month, Trade, Transportation, & Utilities gained jobs (+1,200) – one of Star Staffing’s industry specialties – which, the EDD reports, was above average for December gains. (Source: Also edd.ca.gov)
- Another industry win: Leisure & Hospitality added 7,500 jobs last month alone, largely thanks to holiday season hiring in recreation-related sectors.
- CalMatters published a “2024 in Review” round-up on the state of California’s economy, calling it “a year of ups and downs.”
- North Bay Business Journal Special Report: Wine business faces several years of correction “as the industry addresses oversupply issues and courts younger consumers.”
- Here’s a great seminar by a Santa Rosa-based law firm that provided in-depth coverage of 2025’s new labor laws in California, including overtime, minimum wage, travel and labor violations.
Around the U.S.:
- According to the Bureau of Labor Statistics (BLS), the national unemployment rate stayed about the same last month, but non-farm employment increased by ~256,000.
- JP Morgan reported that the U.S. economy has a “strong finish to the year.” The report also found that “the average duration of unemployment stabilized after five consecutive months of increases.”
- U.S. News and Report also reported that the economy headed into 2025 “in good shape.”
Hiring & Work Culture News & Trends
- The small business optimism index hit a six-year high in December, according to NFIB. Also in the report: 19% of small businesses reported plans to hire in the first three months of 2025.
- Certain California employers have started offering on-site childcare to entice new employees in a competitive jobs market (CalMatters)
- “Fact check: Did Gavin Newsom really help create 625,000 new job opportunities in California?” (CalMatters)
- Ad Age found that despite an uptick in the use of AI in marketing jobs, there’s still a demand for entry-level workers across industries.
- The LA Times reports that new immigration policies may affect California’s growing need for childcare in unanticipated ways.
- A duo of surveys found that businesses were feeling optimistic that the new administration would “boost their bottom lines” — a good sign for hiring and expansion in 2025.
Northern California Unemployment Rates by County
*Note: Not seasonally adjusted.
Alameda County: 4.5% (down 0.2% MoM)
Alameda, Oakland, Hayward, Berkeley, San Leandro, Livermore, Pleasanton, Dublin
Marin County: 3.5% (down 0.2%)
Larkspur, Mill Valley, Novato, San Rafael
Napa County: 4.3% (same)
Napa, Yountville, St. Helena, Calistoga, American Canyon, Angwin
Sacramento County: 4.7% (down 0.2%)
Sacramento, Elk Grove, Rancho Cordova, Folsom, Citrus Heights, Fair Oaks
San Joaquin County: 6.4% (up 0.1%)
Stockton, Lodi, Tracy, Manteca, Ripon, Lathrop
Sonoma County: 4.0% (down 0.1%)
Sonoma, Santa Rosa, Petaluma, Healdsburg, Rohnert Park, Sebastopol, Windsor, Bodega Bay
Solano County: 5.1% (down 0.3%)
Fairfield, Vacaville, Vallejo, Benicia, Suisun City, Dixon, Rio Vista
Stanislaus County: 6.8% (up 0.1%)
Ceres, Modesto, Oakdale, Patterson, Riverbank, Salida, Turlock
Yolo County: 5.3% (up 0.1%)
Davis, West Sacramento, Woodland
Note: For Southern California unemployment rates, see edd.ca.gov.
California Labor Law/Policy Changes (2024)
Minimum Wage Increase
California’s minimum wage increased to $16/hour on Jan. 1, 2024. (More details.)
Paid Sick Leave Increase
As of January 1, 2024, California’s paid sick leave law has been expanded. Employers must allow workers to use at least 40 hours or five days of paid sick leave per year (up from 24 hours or three days). Some cities or regions in California may require employers to provide additional sick leave. (More details.)
Related Articles and Resources
From Star Staffing
Here are a few of the articles we published on hiring trends and California labor last month.
- 25 New Year’s Resolutions to Advance Your Career in 2025
- How to Implement Successful Change Management Techniques
- What to Expect When You Use a Direct Hire Staffing Agency
- 4 Unexpected Benefits of Using a Staffing Firm Over In-House Teams
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Star Staffing is a woman-owned, award-winning recruiting and temp hiring firm with 6 branch locations throughout California.