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 March 2025 (released in late April 2025).
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A Note from Star Staffing’s CEO
California’s unemployment rate stayed the same this month, as did the national average. Long-term, the data looks even better for our state — while the U.S. unemployment rate is 0.3% higher than it was this time last May, California’s increase in unemployment was much softer — just 0.1% — implying that our economy is faring better than the U.S. average.
In case you missed it: California also surpassed Japan to become the world’s 4th-largest economy last month, behind only the U.S., China, and Germany, which is certainly one reason why our unemployment rate is not directly tied to the U.S. average.
Finally, as staffing specialists in industries that require temp workers with highly specific skill sets, we were intrigued by a couple of thoughtful pieces published this month — one on why manufacturing jobs may hold the key to rebuilding the middle class and another on the rise of trade school attendance by Gen Z. Those articles, along with a few others, are linked below under “Hiring and Work Culture News.”
– Lisa Lichty, Owner & CEO
P.S. If you’re a new grad considering entering the workforce for the first time, we welcome you. Here is our annual letter to the Class of 2025.
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%
MoM: Same as last month.
YoY: Up 0.1%.
Other California Highlights:
- It’s interesting to note that while California’s unemployment rate may have climbed 0.1% year-over-year, the EDD reports that the U.S. unemployment rate increased by 0.3% during that same period. (Source: edd.ca.gov)
- Since April 2020, California has gained 3 million plus jobs, or an average of 51.8k jobs per month. (Source: Also edd.ca.gov)
- We did see the largest month-over job losses in Employment Services, which the EDD attributes to the typical slowdown of hiring temporary workers. (Though here at a Star, many of our clients are hiring for the busy harvest season now!)
Around the U.S.:
- According to the Bureau of Labor Statistics (BLS), the national unemployment rate was also unchanged last month — it is still sitting at 4.2%
Hiring & Work Culture News
- The WSJ reports on how much California relies on immigrant workers to prop up its economy.
- Film jobs are leaving California — and specifically Southern California, where they’re an essential part of the economy — The Guardian reports on why.
- Consumer confidence jumped this month after months of decline, the Times reports, likely due to the hold on tariffs on China.
- What makes manufacturing jobs special? NPR’s Planet Money reports on how it could “rebuild the middle class.“
- Facing economic uncertainty and the rising cost of college education, Gen Z is pivoting to trade jobs, reports Business Insider (gated)
Northern California Unemployment Rates by County
*Note: Not seasonally adjusted.
Alameda County: 4.2%
Alameda, Oakland, Hayward, Berkeley, San Leandro, Livermore, Pleasanton, Dublin
Marin County: 3.7%
Larkspur, Mill Valley, Novato, San Rafael
Napa County: 3.8%
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: 6.3%
Stockton, Lodi, Tracy, Manteca, Ripon, Lathrop
Sonoma County: 4.0%
Sonoma, Santa Rosa, Petaluma, Healdsburg, Rohnert Park, Sebastopol, Windsor, Bodega Bay
Solano County: 4.8%
Fairfield, Vacaville, Vallejo, Benicia, Suisun City, Dixon, Rio Vista
Stanislaus County: 6.8%
Ceres, Modesto, Oakdale, Patterson, Riverbank, Salida, Turlock
Yolo County: 5.2%
Davis, West Sacramento, Woodland
Note: For Southern California unemployment rates, see edd.ca.gov.
California Labor Law/Policy Changes (2025)
Minimum Wage Increase
As of Jan. 1, the California state minimum wage increased to $16.50 per hour for all employers, regardless of employee headcount. Exempt employees in California must be paid a minimum annual salary of $68,640. (More details.)
Paid Sick Leave Changes
Under AB 2123 (Paid Sick Day Use by Victims of Violence), employees in California can now use sick leave to assist any family member “who is a victim of certain types of violent incidents or threats of violence.” (More details.)
Under SB 1105, farmworkers can now take needed sick leave during certain dangerous weather conditions. (More details.)
Driver’s License Requirements
Under SB 1100, employers can no longer require that employees have a driver’s license unless driving is actually part of the job. (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.
- Here’s to the Class of 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.