Getting your
Trinity Audioplayer ready...California is a national unemployment leader, no matter how you do the math.
But what does that really say about the state of the state’s job market?
My trusty spreadsheet reviewed a spin on the traditional jobless rate to check on California’s standing. This “U-6” measure, as federal job counters call it, offers a broader view of workers’ struggles to find decent jobs.
This yardstick counts not only people who are actively looking for jobs — the basis for the traditional jobless tally — but it also includes “discouraged” folks who want a job but haven’t looked recently. Plus, it counts the “underemployed” – workers with part-time jobs who really want a full-time gig.
Some folks say this is the “real” unemployment rate, but for this discussion, let’s call it the worker disappointment rate.
As of the third quarter of 2025, the latest stats available, California’s disappointment rate was 10%. That’s the highest in the nation and well above the national median of 7.3%.
After California came Nevada at 9.6% and Michigan at 9.3%; the lowest disappointment rate was found in South Dakota at 4.6%, followed by Alabama and Vermont at 5.4%.
Note that this job dissatisfaction measure wasn’t exactly kind to California’s economic arch-rivals either. Texas’ 7.9% rate ranked 17th-highest, while Florida’s 7.4% ranked No. 25.
On the decline
The good news is that recent worker disappointment runs well below the 20-year average – statewide and nationally.
The bad news for Californians is that the state has long ranked high on this chart. California’s average rate of 13.4% since 2005 has tied Nevada for No. 1 among the states.
Nationally, the disappointment rate ran at 10%. The 20-year lows were found in North Dakota at 5.8%, South Dakota at 6.4%, and Nebraska at 6.7%.
And California’s rivals? Texas’ 9.7% ranked No. 31, and Florida’s 10.9% was No. 13.
Not unexpected
California’s lofty disappointment grade mirrors its standing on the traditional unemployment scorecard, which is derived from the same household surveys.
A short-term lens shows California’s 5.5% jobless rate for 2025’s third quarter ranked second among the states while the national rate was 4%. Only the District of Columbia at 6.5% was higher.
The lowest jobless rates were in South Dakota and Hawaii, at 2.1%. The rivals? Texas’ 4.2% ranked No. 21 and Florida’s 4% ranked No. 26.
Looking back over two decades, again we’re seeing lower rates – with California still high on the scorecard.
California’s 7.1% average rate was above the national median of 5.6% and was topped only by Nevada’s 7.5% among the states.
The lowest was in North Dakota at 3%, South Dakota at 3.2% and Nebraska at 3.3%. The rivals? Texas’ 5.4% ranked No. 29, as Florida’s 5.8% was No. 21.
Bad job market?
By jobless counts, California looks like a bad place for workers.
But consider how many opportunities were created over the past two decades, based on job counts taken from employer surveys.
California added 2.9 million jobs over these 20 years, accounting for 12% of the national employment expansion of 23.9 million jobs. Only Texas added more at 4.5 million. Florida’s 2.1 million was No. 3.
But that’s not a total surprise, as California is the nation’s biggest job market. But look at the hiring pace, as a percentage of all employment, and you might be surprised to learn that California was an above-average job creator even when its economic heft was accounted for.
Since 2005, California jobs have grown 19% – the 16th-fastest pace, just ahead of the nation’s 18% growth. It seems that California workers are flexible enough to find the many new positions the state’s employers create.
Still, see what the top job creators did over 20 years: Utah (up 53%), Texas (up 46%) or Idaho (up 44%). And Florida’s 27% growth ranked No. 10.
How can this be?
Unemployment figures are certainly a gauge of who’s unhappy with the job market.
And swings in joblessness can drive changes in everything from consumer sentiment to shopping patterns to bill-paying ability.
But, curiously, higher joblessness seems to appeal to the many employers who prefer a wide selection of candidates to staff their operations. Low unemployment can stunt job growth.
Plus, dynamic economies that create significant employment opportunities often require noteworthy risk-taking. But when certain business ideas don’t pan out, job losses are created.
So, think about the past two decades and rank the states by their worker disappointment rate – then eyeball their job creation.
Bosses in the 17 states with the highest levels of worker disappointment added 10 million jobs, representing 18% employment growth.
Compare that to the 17 states with low disappointment: only 3.4 million jobs created, or 14% growth.
Or ponder this economic puzzle this way.
Five of the 10 fastest-growing job markets since 2005 – Nevada, Washington, Arizona, Florida and North Carolina – were states with a high disappointment rate.
Just three of the Top 10 growth states – Idaho, Utah and North Dakota – came from the lowest disappointment rates.
California isn’t some oddity. Elevated joblessness, discouragement or underemployment doesn’t always mean a state has a bad job market.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com