California Job Market Shows Growing Signs of Weakness Amid Rising Layoffs

California saw over 47,000 new jobless claims last week, a spike of 6,150 over the previous week, signaling labor market concerns.

California currently has the second highest unemployment rate (5.1%) after Nevada (5.3%), suggesting a weakening state job market.

Major layoffs are scheduled in California over the next few months, already impacting over 22,000 workers across tech, retail, healthcare and other key industries.

Reasons for layoffs include slower hiring, increased job cuts for the first time in this cycle, over-hiring during COVID, and companies adapting to economic shifts.

While not signaling a recession yet, the broad layoffs represent a downshift and uncertainty in California's job growth going forward.