San Diego County Unemployment Rises to 5% in july, Despite Overall labor Force Growth
SAN DIEGO, CA – September 19, 2025 – San Diego County’s unemployment rate climbed to 5% in July, according to newly released data, even as the region’s labor force continues to expand. The figure, unadjusted for seasonal swings, places san Diego near the higher end of unemployment rates among California counties.
The county’s labor force-those employed or actively seeking work-reached 1.68 million in July, a 1.7% increase year-over-year, just 3,800 people shy of the peak of 1.69 million recorded in March. When seasonally adjusted, the unemployment rate falls to 4.6%, comparing favorably to the U.S. average of 4.3% and California’s 5.5%.
Despite the overall labor force growth,several sectors experienced job losses over the past year. Professional and business services saw the largest decline, shedding 7,000 positions, followed by manufacturing (-2,800), financial activities (-2,100), facts (-1,100), trade, transportation and utilities (-900), and construction (-700).
Conversely,San Diego County experienced significant job growth in private education and health services,adding 12,500 jobs. Government positions, primarily in education, increased by 7,400, and leisure and hospitality (tourism-related jobs) added 1,500 positions.
Currently, retail salespersons represent the highest demand, with 1,648 job openings in July, followed by registered nurses (1,371), first-line supervisors of retail sales workers (917), and home health and personal care aides (715). Major employers actively hiring include UC San Diego, Scripps Health, Sharp Healthcare, General Atomics, Starbucks, and Qualcomm.
This week,the San Diego City Council approved an ordinance raising minimum wages for moast tourism workers to $25 an hour over four years,a change expected to impact hiring in the long term.
Experts caution that labor force numbers can fluctuate monthly and note a potential trend of older workers re-entering the workforce due to financial pressures. The Federal Reserve’s recent quarter-percentage-point interest rate cut is also expected to influence borrowing costs.
