The unemployment rate in San Diego County increased to 4.7% in January, up from the December estimate of 4.4% and above the year-ago rate of 4.5%, according to data released Friday by the state Employment Development Department.
The region's rate of unemployment compares with 5.5% for California and 4.7% for the nation during the same period.
Between December 2025 and January 2026, total nonfarm employment decreased from 1,580,100 to 1,564,100, a drop of 16,000 jobs. Agricultural employment lost 200 jobs.
Trade, transportation, and utilities lost the most jobs over the month with a 7,900 decline. Of these, more than 68% was in retail trade, as seasonal workers were let go.
Leisure and hospitality saw the second largest decline, losing 3,100 jobs. More than 74% of these losses were attributed to accommodation and food services, also a result of seasonal layoffs. Arts, entertainment, and recreation also contracted by 800 jobs. Six additional industry sectors reported job losses over the month. Government, financial activities, construction, manufacturing, professional and business services, and information further reduced employment by 6,200.
Between January 2025 and January 2026, total nonfarm employment increased by 10,900, while farm employment remained unchanged.
Private education and health services led all industries, adding 16,600 jobs. Health care and social assistance ramped up its employment by 15,800 jobs, contributing 95% of the growth in this sector.
An additional four sectors gained a combined total of 9,900 jobs — nearly 60% of which was in leisure and hospitality, while other services, professional and business services, and financial activities provided the remaining job gains.
A total of five sectors lost a combined total 15,600 jobs, led by government with a decline of 8,500 jobs. The majority of these were in federal government. Construction, trade, transportation, and utilities, information, and manufacturing further reduced employment by 7,100 jobs.
In the past six months, the jobs report has been several months delayed and inconsistent. It is unclear when March's unemployment figures will be released.
