California now has the highest unemployment rate in the country, reaching 5.3%, according to data from the Employment Development Department. 

At the beginning of the COVID-19 pandemic, California lost 2.7 million jobs due to stay-at-home orders. Since then, California has rebounded by adding 3 million jobs to its market, averaging roughly 66,000 jobs per month.

However, a recent data analysis found a discrepancy between the numbers. While federal data showed the state created 300,000 jobs between September 2022 and September 2023, the corrected amount revealed that only 50,000 jobs were created during that period.

“I think California’s economy is the leading edge of the national economic slowdown,” said Sung Won Sohn, a professor of finance and economics at Loyola Marymount University.

It can be challenging to measure job growth accurately. The number is based on a monthly survey of workers. Initial numbers showed the state added 9,900 jobs in July 2023, but corrected numbers found the state actually lost 41,400 jobs that same month.

The tech industry’s boom during the pandemic era may also be reaching a turning point, affecting Silicon Valley. After receiving billions of dollars in federal aid and a “runaway stock market,” technology companies may have hired too many too quickly. 

“The tech sector, especially major firms, over-hired in the first post-pandemic year, and has been shedding jobs since,” said Michael Bernick, a former director of the California Employment Development Department. “The (San Francisco) Bay Area is the new epicenter of Artificial Intelligence start-ups. But these start-ups so far are creating a small number of jobs.”

The SAG-AFTRA strike, which lasted nearly five months in 2023, also displaced some of California’s economy. Nearly 25,000 actors and writers lost their jobs during this time. 

According to Kevin Klowden, an executive director at the Milken Institute, Hollywood will take years to return to where it was before the strike. He said some restaurants and other businesses that relied on actors and writers for business may never reopen.

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In total, there were 1,027,000 Californians without jobs in February, up 13,100 from January and 165,400 more than in February 2023.

Of the state’s 11 industry sectors, private education and health services saw the most significant increase in job growth, adding 15,400 jobs to the state’s economy. The construction industry saw a loss of 9,600 jobs.