San Diego County’s job market inched in the right direction in September, with the unemployment rate ticking down to 4.9%, from a revised 5.0% in August. That keeps the county below California’s higher jobless rate, but still hovering near the national rate in the low‑4 percent range.
Data from the California Employment Development Department shows total nonfarm employment in the county slipped from 1,559,100 to 1,558,900, a loss of about 200 jobs, while agricultural payrolls fell by roughly 100 positions. The agency notes that the September figures are preliminary.
Where Jobs Were Lost And Gained
According to the Times of San Diego, leisure and hospitality took the biggest hit on a month‑over basis, shedding about 3,800 jobs. Seven other industries also posted month‑over declines, totaling roughly 6,300 jobs. On the flip side, government payrolls added about 8,600 jobs over the month, and private education and health services grew by roughly 1,300 positions, softening the overall blow.
Statewide Trends And Tech Layoffs
The statewide picture was less encouraging. California’s unemployment rate climbed to 5.6% in September, while payrolls dropped by about 4,500 jobs. Professional and business services, including tech, were among the largest sources of cuts, according to the San Francisco Chronicle. That broader weakness helps explain why San Diego’s sector gains were not enough to send the local jobless rate sharply lower.
Fed Reaction
Federal Reserve Chair Jerome Powell said this week that “gradual cooling in the labor market has continued” and suggested that recent payroll figures may be overstating job creation by roughly 60,000 per month, comments that framed the Fed’s latest policy discussions, per RBC Economics. Powell’s warning highlights how tricky it is for economists to draw firm conclusions from any single monthly report.
What This Means For San Diegans
For locals, the report lands somewhere between reassuring and frustrating. On a year‑over‑year basis, the county added about 11,300 jobs, with private education and health services and government payrolls leading the way. At the same time, losses in professional services and in leisure and hospitality show that the recovery is still uneven, leaving job seekers and employers to navigate a patchwork labor market rather than a clean comeback story.
Data Caveats And Next Steps
The EDD stresses that the September numbers are preliminary and notes that the 43‑day federal government shutdown disrupted the usual release schedule. The agency says data for October and November are tentatively set for release on Jan. 7, 2026, which could alter the current snapshot, according to the California Employment Development Department. For now, September serves as a useful, if incomplete, read on where San Diego’s labor market stands.
