San Diego’s Unemployment Rate Drops to 4.6% Amid Holiday Hiring

The unemployment rate in San Diego fell to 4.6% in November, driven primarily by an increase in holiday retail hiring. This marks a decline from 4.9% in September, according to the California Employment Development Department. The agency was unable to provide data for October due to disruptions caused by the federal government shutdown, which affected data collection efforts.

Earlier this year, San Diego County experienced higher unemployment rates, peaking at 5.2% in July before showing signs of improvement in November. The recent reduction in the jobless rate can largely be attributed to gains in the retail sector and government employment. Kevin Carroll, executive director of Tech San Diego, noted a shift in the labor market where employers are hesitant to reduce workforce numbers, recalling the challenges of securing skilled talent in recent months.

San Diego’s unemployment rate of 4.6% remains lower than California’s overall rate of 5.4%, yet slightly higher than the national average of 4.3%. The state’s delayed data release for November contrasts with the nationwide report issued for December, which revealed that U.S. employers added 50,000 jobs, significantly below the expected 73,000 increase. Furthermore, job growth in 2025 totaled 584,000, marking the lowest annual growth since 2020.

Sector Analysis and Job Gains

In San Diego, the job market appears to be on a different trajectory compared to national trends. The region added 11,800 jobs annually through November, an increase from 8,600 jobs in November 2024. The most significant gains were observed in the trade, transportation, and utilities sector—primarily retail—adding 5,400 jobs. Government positions, especially in education, contributed an additional 3,000 jobs.

Other notable job additions included 2,700 positions in private education and health services, 800 in leisure and hospitality, 400 in professional and business services, and 100 in financial activities. Conversely, the construction sector saw a decline of 1,000 jobs, while manufacturing lost 400 positions.

When adjusted for seasonal fluctuations, San Diego County’s unemployment rate stood at 4.6%, which aligns with Beacon Economics’ findings. This is comparable to the revised U.S. jobless rate of 4.5% for November and higher than California’s 5.5%.

On an annual basis, the largest job growth occurred within private education and health services, which added 6,200 jobs. Government roles followed with 4,100, while leisure and hospitality contributed 2,100 jobs. However, significant job losses were reported in professional and business services, shedding 6,200 positions, alongside losses in manufacturing (2,400), construction (2,200), financial activities (1,200), and information sectors (800).

Job Market Outlook

In November, the most in-demand position in San Diego County was retail salesperson, with 1,688 job advertisements. Other positions with high demand included registered nurses (1,488 ads), home health and personal care aides (942), and software developers (901). Leading employers posting job openings included major organizations like Qualcomm, UC San Diego, General Atomics, Apple, Sharp Healthcare, Scripps Health, and Intuit.

While San Diego County’s unemployment rate of 4.6% is relatively stable compared to other areas in California, it positions the region in the middle of the spectrum. For comparison, Los Angeles County reported an unemployment rate of 5.7%, while Orange County had 4.1%, San Francisco County 3.9%, Santa Clara County 4.2%, Santa Cruz County 5.9%, and Riverside County 5.5%.

The current labor market dynamics in San Diego suggest a cautious optimism, with employers focusing on retaining talent in anticipation of future uncertainties.