San Diego County Unemployment Drops September

The region's rate of unemployment is less than the rest of the state but more than the national average.

By City News Service, Patch Staff

Oct 16, 2026 6:07 PM PDT

SAN DIEGO, CA — The unemployment rate in San Diego County declined to 4.7% in September, down from a revised 4.9% in August and below the year-ago estimate of 4.9%, according to data released Friday by the state Employment Development Department.

The region's rate of unemployment compares with 5.1% for California and 4% for the nation during the same period.

Between August and September, total nonfarm employment increased from 1,568,100 to 1,572,500, an increase of 4,400 jobs. Agricultural employment remained unchanged.

The government sector had the largest month-over gain in employment with 9,800 jobs added. Local government, specifically local government educational services, provided more than 80% of the gains as schools returned from summer break. State and federal government provided the remaining 1,500 jobs.

An additional two sectors reported an increase in employment, a total of 1,400 jobs. Private education and health services added 1,200 of those jobs, with health care and social assistance generating 1,100 of those within the sector.

On the other side of the ledger, seven industries reported declines for a total contraction of 6,800 jobs. Leisure and hospitality lost the largest share -- down 4,000 -- and trade, transportation, and utilities, financial activities, construction, manufacturing, information, and other services combined for the remainder.

In the year-over data, between September 2025 and September 2026, total nonfarm employment increased by 19,900, while farm employment decreased by 400.

Private education and health services saw the largest gains, adding 14,400 jobs. Health care and social assistance ramped up its employment by 15,100 jobs, contributing all growth in this sector. Private educational services offset the advancements by 700 jobs, the EDD reported.

An additional five industry sectors combined to add 11,800 jobs, led by leisure and hospitality with 5,300 jobs gained. Professional and business services increased by 3,200 jobs.

Conversely, four sectors lost a combined total of 6,300 jobs, led by government with a decline of 2,400. Construction saw the next largest decline, reducing employment by 1,700 jobs.