California experienced no job creation in the final quarter of 2024 and saw a net loss of over 80,000 jobs throughout the year, according to a new report from the state-funded Legislative Analyst’s Office (LAO).
The report, which draws on federal labor data, highlights a troubling employment trend in the Golden State. Despite earlier projections of job growth, revised figures reveal that California’s economy shed approximately 80,300 jobs between January and December 2024, with employment numbers dropping from 18,010,000 to 17,929,700 over that period.
The LAO also noted that monthly job growth estimates have been consistently overstated. Since mid-2022, five of the last six quarterly benchmark revisions have revealed weaker employment trends than initially reported. On average, the monthly surveys overestimated California’s job growth by 25,000 jobs per month during that time.
The revised figures are based on seasonally-adjusted benchmarks from the Federal Reserve Bank of Philadelphia, which incorporate data from the Quarterly Census of Employment and Wages. This dataset, covering roughly 95% of U.S. jobs, provides a more comprehensive picture of employment trends than preliminary monthly surveys.
The downward trajectory has persisted into 2025, according to early benchmarks. In the first quarter of the year, California continued to lose jobs, falling from 17,909,000 in January to 17,881,000 in March. However, there was a modest rebound in April, with employment numbers climbing to 17,898,600 — still below January’s level.
Analysts warn that the state’s job market remains fragile. Ongoing job cuts at the state and local government levels — coupled with risks to federal funding — could further strain employment numbers, particularly within the taxpayer-funded sector.
The report also underscores a troubling long-term pattern: California has lost nearly 200,000 private sector jobs since 2023. While these losses were temporarily offset by growth in government-funded positions, experts caution that reduced hiring or layoffs in the public sector could have a significant negative impact on overall employment.
The LAO’s findings arrive as California policymakers face mounting pressure to address the state’s economic uncertainty, high cost of living, and business climate — all factors contributing to the challenging job market.
