Unemployment Rate Declines To 4.9% In September In San Diego County

SAN DIEGO, CA The unemployment rate in San Diego County decreased to 4.9% in September, down from a revised 5% in August 2025, and above the year- ago estimate of 4.4%, according to several-monthsold data released Friday by the state Employment Development Department.

The region's rate of unemployment compares with 5.6% for California and 4.3% for the nation during the same period.

Between August and September, total nonfarm employment decreased from 1,559,100 to 1,558,900, a loss of 200 jobs. Agricultural employment lost 100 jobs.

Leisure and hospitality led all sectors in job losses, declining by 3,800. A total of seven other industries posted month-over losses of 6,300 with mining and logging unchanged.

The government sector posted 8,600 new jobs and private education and health services increased employment by 1,300 to nearly offset those losses.

Between September 2024 and September 2025, total nonfarm employment increased by 11,300, while agricultural employment increased by 100.

The private education and health services sector saw the most jobs gained here, with an increase of 12,900. Government also increased payrolls by 8,000 in the year-over-year numbers. The other 3,100 jobs gained were split between leisure and hospitality and other services.

On the other hand, six sectors lost employment over the year for a total decrease of 12,700. Professional and business services experienced the largest decline of 6,500 jobs. Manufacturing, financial activities, trade, transportation, and utilities, information, and construction saw the remainder of the job losses.

The 43-day long government shutdown altered the normal release of labor numbers this fall. The EDD usually releases its numbers after the month's totals have settled and been adjusted.

Federal Reserve Chairman Jerome Powell said this week that the Trump Administration's Department of Labor might be exaggerating employment by nearly 60,000 jobs per month, which could spark the Fed to lower interest rates.

"Gradual cooling in the labor market has continued," Powell said at a news conference Wednesday. "Surveys of households and businesses both show declining supply and demand for workers. So, I think you can say that the labor market has continued to cool gradually, just a touch more gradually than we thought."

— City News Service