California Labor Report – September 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 August.
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A Note from Star Staffing’s CEO
California’s unemployment rate held steady at 5.1% in August (the lowest since December 2023!) while the state added 39,400 nonfarm jobs, the strongest monthly gain in five months. August also marked the state’s ninth consecutive monthly decline in unemployment, with 101,300 fewer unemployed Californians over that stretch.
And worth noting for Northern California in particular: the agriculture sector added 15,500 jobs year over year — a bright sign for the harvest season underway across our region.
As always, if you’re in need of hiring support (for harvest season 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: How to Refresh Your Resume for Fall and The Benefits of Using a Staffing Firm for the Upcoming Harvest Season.
– 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 August 2026, technically unchanged from July but the lowest rate since December 2023. (EDD latest data)
- Month-over-month: California added 39,400 nonfarm jobs in August, the strongest monthly gain in five months. July’s total was also revised upward by 4,800 jobs, lowering the estimated July loss to 15,700.
- Year-over-year: Nonfarm employment rose by 138,500 jobs (+0.77%) from August 2025 to August 2026, outpacing the nation’s year-over-year job growth rate on a percentage basis. California accounted for more than 24% of the nation’s total job growth in August.
- Five of California’s 11 industry sectors added jobs in August, led by Private Education & Health Services (+18,600) and Government (+9,800), as the new school year kicked off across the state.
- August marked the state’s ninth consecutive monthly decline in unemployed Californians (-14,000), for a total of 101,300 fewer unemployed people over that span.
Around the U.S.:
- Unemployment rate: The national unemployment rate held steady at 4.1%. (BLS Employment Situation, August 2026)
- Nonfarm payrolls rose by 162,000 in August, well above expectations of around 56,000 and the strongest month in five months. June and July were also revised up by a combined 55,000 jobs.
- 35% of small business owners reported job openings they could not fill in August,* down 1 point from July but still 11 points above the historical average, per the NFIB’s latest Jobs Report.
- 56% of small business owners reported hiring or trying to hire, down 5 points from July.
*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
- Job seekers are waiting for the “September Surge,” but data from LinkedIn and Indeed suggests it may not deliver the hiring free-for-all they’re expecting. (FORTUNE)
- Hilton received 12,000 Gen Z applications for just 72 internship spots. The company’s CHRO says AI has made hospitality roles more competitive. (FORTUNE)
- CNBC also has a great round-up on fall hiring trend predictions, including its take on the September Surge.
More From the Team at Star Staffing:
Here are a few other articles you might like.
- 7 Summer Safety Tips for Employees Working in the Heat
- Why Making Safety a Top Priority is Beneficial to Your Company
- 3 Powerful Benefits of Using a Staffing Firm for Contingent Hiring
Northern California Unemployment Rates by County
*Note: Not seasonally adjusted.
Alameda County: 4.9%
Alameda, Oakland, Hayward, Berkeley, San Leandro, Livermore, Pleasanton, Dublin
Marin County: 4.4%
Larkspur, Mill Valley, Novato, San Rafael
Napa County: 4.3%
Napa, Yountville, St. Helena, Calistoga, American Canyon, Angwin
Sacramento County: 5.3%
Sacramento, Elk Grove, Rancho Cordova, Folsom, Citrus Heights, Fair Oaks
San Joaquin County: 6.5%
Stockton, Lodi, Tracy, Manteca, Ripon, Lathrop
Sonoma County: 4.5%
Sonoma, Santa Rosa, Petaluma, Healdsburg, Rohnert Park, Sebastopol, Windsor, Bodega Bay
Solano County: 5.5%
Fairfield, Vacaville, Vallejo, Benicia, Suisun City, Dixon, Rio Vista
Stanislaus County: 7.0%
Ceres, Modesto, Oakdale, Patterson, Riverbank, Salida, Turlock
Yolo County: 5.7%
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.