Monthly California Labor & Employment Report: September 2026

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

    1. California labor highlights (unemployment rates, industry details, etc.)
    2. U.S. labor highlights
    3. This month’s work culture news
    4. California unemployment rates by county

 

California Labor Market Highlights

 

October 2026 Labor Data (5.1% unemployment in California in September)

 

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.:

*Note: If you, too, are struggling with filling positions at your company, reach out to us. We’ve got incredible candidates within reach.

 

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This Month’s Hiring & Work Culture News

 

More From the Team at Star Staffing:

Here are a few other articles you might like.

 

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.

 

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Star Staffing is a woman-owned, award-winning recruiting and temp hiring firm with branch locations throughout California.

 

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