Public-Sector Job Gains Have Offset Broad Weakness in Private-Sector Labor Market. Since the beginning of 2022, the state's labor markets have grown modestly but shown some signs of weakness. A closer look at this period unveils a more worrisome trend: large and mounting private-sector job losses that have been offset by continued hiring in public sector (and publicly supported) fields. Since its post-pandemic peak in September 2022, California's private sector has lost a net 154,000 jobs (1.2 percent) while the public sector has gained 361,000 jobs (7 percent).
Most Private-Sector Industries Began Shedding Jobs in 2022. The graph below shows each of the state's private-sector industries that have seen declines since their post-pandemic peak. The state's technology sector (formally referred to as Information) and finance sectors have seen the largest percentage declines. The table below includes more information about these industries. Among private-sector industries, only (1) accommodations and food services, (2) personal services, and (3) private education continue to add jobs.
Nationally, Private-Sector Employment Continues to Grow. Compared to the California private-sector industries that have shown job losses since 2022, nationwide, these industries have continued to expand. The following figures highlight the divergence between California and national job growth in a few key private-sector industries.