California’s unemployment rate has been rising steadily for three consecutive months, reaching 5.5% in March, as indicated in the report published on April 17 by the California Department of Technology, Management, and Budget. This is an increase from 5.4% in February. Since March 2024, the unemployment rate in the state has spiked by 1.3 percentage points from 4.2%. Moreover, the job-loss rate in March was notably higher than the national rate of 4.2%.

Payroll jobs experienced a significant dip in March, primarily in the manufacturing sector and the professional and business services sector. Manufacturing saw a loss of 5,000 jobs while the professional and business services sector shed 4,000 jobs during the same period.

On a positive note, the state government sector depicted a significant increase in job creation, adding 2,000 new jobs in March. This sector comprises local, state, and federal government jobs. The increase was evenly divided between the state and local government sub-sectors. Federal employment remained unchanged in the state in March and only declined by a few hundred positions since the beginning of the year.

In April, there was an elevated number of new unemployment insurance filings by California residents compared to the previous year. Over 6,500 new claims were filed last week, demonstrating a 38% increase from the same period last year, according to U.S. Department of Labor data.

According to an economic forecast for California released in February by the University of California Research Seminar in Quantitative Economics, economic growth in the state is projected to slow significantly over the next two years. However, they didn’t foresee an outright downturn in the economy. The unemployment rate in California is predicted to fluctuate between 4.8-4.9% through the later half of 2025 into 2026.

For individuals who are unemployed and looking for information about how to access unemployment benefits, the California Employment Development Department (EDD) provides resources and customer service. To speak with a live person about your claim, contact eddcaller.com for the most efficient way to get through to EDD’s customer service. Their staff can assist with questions about unemployment insurance, the claim process, and any necessary documentation, making it easier for you to navigate the system and get the help you need.