Bay Area Sees Job Boom, Dip In Unemployment Rate

SAN FRANCISCO, CA — The Golden State recorded a new unemployment low in July that hasn't been seen since 1976 and recovered thousands of jobs that were previously lost during the COVID-19 pandemic, according to the latest report from the Employment Development Department.

California's unemployment rate dropped from 4.2 percent in June to 3.9 percent in July. What's more, the state accounted for 16.1 percent of all new jobs across the nation in July, according to the EDD.

A hiring frenzy observed across the Bay Area helped drive unemployment rates down across the region.

"Californians are getting back to work with record low unemployment," Gov. Gavin Newsom said in a statement. "We have historic reserves and we're putting money back in peoples’ pockets as we continue to lead the nation’s economic recovery."

The Bay Area added 11,300 tech jobs in July, The Mercury News reported. The San Francisco-San Mateo added 5,200 tech jobs, the South Bay added 4,000 and the East Bay saw an increase of 2,000, according to the newspaper.

The tech sector accounted for 55 percent of all jobs gained in the Bay Area in July, the EDD.

“Tech hiring appears to have rebounded solidly in July, which provided a boost to California’s overall job growth,” Mark Vitner, a senior economist with Wells Fargo Bank, told the Mercury News. “This is especially true in the Bay Area."

The state added 84,800 nonfarm jobs in July and the number of employed Californians rose by 23,000, the EDD reported.

Out of the Bay Area's nine counties, Santa Clara County and the San Francisco-San Mateo area added the most positions, according to the EDD.

In San Francisco and San Mateo counties, professional and business services added 30,600 jobs to payrolls. Professional, scientific and technical services, up 28,200 jobs, contributed to most of the growth.

Across the South Bay counties of Santa Clara and San Benito, most of the growth was also observed in professional, scientific, and technical services, up 12,500 jobs.

But experts warn that the low rate could be inflated by underemployment and low-paying jobs.

"Sure, more people have jobs now, which is good on paper. But these jobs are not replacing the higher paid jobs that came with benefits. These jobs are generally lower paying and come with fewer, if any, benefits," Raymond Fletcher, a Los Angeles-based economist who specializes in underemployment, told the California Globe.

Here are the unemployment rates across several Bay Area counties

Santa Clara & San Benito Counties

The unemployment rate in the San Jose-Sunnyvale-Santa Clara area was 2.2 percent in July 2022, down from a revised 2.3 percent in June.

Here are the noteworthy job sectors that received more positions:

• 5,300 professional and business services jobs added.
• 3,800 professional, scientific and technical services jobs added.
• 1,800 leisure and hospitality jobs added.
• 1,500 jobs in drinking establishments added.
• 1,500 information jobs added.
• 800 construction jobs added.

Jobs in government received payroll cuts of 6,800 jobs, with most of the cuts in local government, slashed by 6,100 jobs. Private education services also experienced a net loss of 1,500 jobs.

Alameda & Contra Costa Counties

The unemployment rate recorded in July was 2.9 percent in Alameda County and 3.1 percent in Contra Costa County, according to the EDD. The number of jobs located in the East Bay counties of Alameda and Contra Costa decreased by 5,200 to a total of 1,177,600.

The area experienced a significant loss in government jobs. About 10,400 jobs in local government were cut and contributed to most of the downturn, while state government slashed 1,400 jobs. Federal government positions remained unchanged.

Here are the noteworthy job sectors that received more positions:

• 2,400 construction jobs added.
• 1,600 leisure and hospitality/professional and business services jobs added.
• 700 jobs added in trade, transportation and utilities.
• 1,100 retail trade jobs added.

San Francisco and San Mateo Counties

The July unemployment rate fell to 2.1 percent in San Francisco County, and 1.9 percent in San Mateo County, the EDD reported.

Most of the growth observed over the past year has been within the professional, scientific and technical services sectors, which have added 28,200 more jobs to these counties since 2021.

Between June and July, local and state government education services declined by a combined 4,900 jobs, the EDD said.

Here are the noteworthy job sectors that received more positions:

• 2,700 jobs added in the information sector.
• 1,900 jobs added in construction.
• 1,000 jobs added in leisure and hospitality.
• 1,100 retail trade jobs added.
• 800 jobs added in food service sand drinking places.