The Bay Area and California both lost thousands of jobs during February, a disquieting report that raises questions about the strength of the economy in the state and this region.
The job losses in the nine-county region and statewide suggest that the hiring boom that began in the final few months of 2023 and extended into January of this year has been interrupted, at least for now.
The Bay Area lost 4,200 jobs in February, according to a state Employment Development report released Friday.
The employment reductions in the nine-county region were triggered primarily by job losses in the tech industry and in construction. Bay Area hotels, restaurants and healthcare firms added jobs in February at a brisk pace, according to a Beacon Economics assessment of the state EDD reports.
California shed 3,400 jobs last month, a setback that terminated six straight months of employment gains statewide, the EDD estimated.
The statewide jobless rate worsened to 5.3% in February, up from 5.2% in January, according to the EDD monthly report.
The latest state unemployment figures are far worse than California’s record-low unemployment rate of 3.8%, which occurred well over a year ago, in August 2022.
All three of the Bay Area’s largest metro centers lost jobs in February. Here’s how they fared:
— The South Bay lost 100 jobs in February.
— The East Bay shed 2,400 jobs last month.
— The San Francisco-San Mateo region lost 1,000 jobs in February.
All of the numbers were adjusted for seasonal variations.
In a distressing turn of events, the new EDD report revealed that the job gains officials reported for January were far weaker than first thought.
Rather than gaining 13,600 jobs in January as initially estimated, the Bay Area added only 1,900 positions.
Similarly, California originally was thought to have added a robust 58,100 jobs in January. It turns out the state’s job gains in January were 25,600 positions — less than half the initial EDD estimate.