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Wednesday, Apr 29, 2026

January Unemployment Jumps to 2.9%

Orange County’s unadjusted unemployment rate jumped to 2.9% in January from a revised 2.4% in December and below the year-ago estimate of 3.3%, according to the state Employment Development Department.

California’s unemployment rate was 4.3% and the U.S.’s was 4%. The most recent numbers for the county, state and U.S. aren’t seasonally adjusted. OC’s lowest-ever unemployment rate was 2.2% in December 1999.

The data precedes and therefore doesn’t reflect the economic impact of the spread of the coronavirus in California.

OC nonfarm employment decreased by 27,500 jobs to 1.7 million. Ten of its 11 sectors reported declines while one was unchanged.

The biggest decrease was 9,600 jobs in the professional and business services, led by a cutback in administrative and support services.

The next biggest decline was 7,300 jobs in trade, transportation and utilities, led by payroll declines in retail trade, which was down 7,200 jobs following the holiday season. Leisure and hospitality declined by 3,500 payroll jobs, led by a 3,100 job drop in accommodation and food services.

About 17.6 million people worked in California outside of agriculture in January, up about 21,400 from December and an increase of 320,000 from a year earlier.

Statewide, six of 11 industry sectors added jobs month-over-month, led by educational and health services, up 7,900 and leisure and hospitality, up 7,800. The biggest decline was professional and business services, down 3,300 jobs. All 11 state sectors reported year over year gains.

People receiving unemployment benefits rose to 339,026 in January, up from 327,751 in December. The January number last year was 376,402.

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Peter J. Brennan
Peter J. Brennan
With four decades of experience in journalism, Peter J. Brennan has built a career that spans diverse news topics and global coverage. From reporting on wars, narcotics trafficking, and natural disasters to analyzing business and financial markets, Peter’s work reflects a commitment to impactful storytelling. Peter’s association with the Orange County Business Journal began in 1997, where he worked until 2000 before moving to Bloomberg News. During his 15 years at Bloomberg, his reporting often influenced financial markets, with headlines and articles moving the market caps of major companies by hundreds of millions of dollars. In 2017, Peter returned to the Orange County Business Journal as Financial Editor, bringing his heavy business industry expertise. Over the years, he advanced to Executive Editor and, in 2024, was named Editor-in-Chief. Peter’s work has been featured in prestigious publications such as The New York Times and The Washington Post, and he has appeared on CNN, CBC, BBC, and Bloomberg TV. A Kiplinger Fellowship recipient at The Ohio State University, he leads the Business Journal with a dedication to uncovering stories that matter and shaping the local business community and beyond.

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