← All monthly reports

Real-time labor market data · January 2026

A holiday hangover, not a downturn

Nonfarm payrolls fell 20,400 in January as seasonal retail and administrative staffing wound down, the sharpest monthly drop of the past year. But the year-over gain of just 2,100 jobs, the smallest in twelve months, shows health care is still doing nearly all of the heavy lifting.

Orange County unemployment
4.1%
Up 3.9% in December 2025 · unchanged from 4.1% a year ago
California unemployment
5.5%
1.4 points above Orange County
U.S. unemployment
4.7%
0.6 points above Orange County

The two-year trend

Orange County's unemployment rate has moved between 3.3% and 4.8% over the past two years. January's 4.1% sits right in the middle of that range.

2.5% 3.0% 3.5% 4.0% Feb '24: 3.9% Jul '25 peak: 4.8% May '24 low: 3.3% Jan '26: 4.1% Feb '24 Feb '25 Jan '26

Swipe left to see the full two-year chart →

What moved this month

Nine of ten supersectors shed jobs in January. Trade, transportation and utilities led the way, down 7,600 jobs as retailers cut seasonal staff; retail trade alone accounted for 74% of that decline. Professional and business services followed, down 4,500 jobs.

Trade, transportation & utilities
−7,600
Professional & business services
−4,500
Government
−2,800
Leisure & hospitality
−2,700
Financial activities
−1,100
Private education & health services
−1,000
Information
−700
Manufacturing
−400
Mining, logging & construction
−100
Other services
+500
Jobs lost, month over month Jobs gained, month over month

Bar lengths are scaled to keep smaller changes visible; exact figures are shown beside each bar.

The twelve-month view

Private education and health services carried the year almost single-handedly, adding 14,600 jobs while government alone erased 15,100.

Government
−15,100
Manufacturing
−4,000
Mining, logging & construction
−1,600
Trade, transportation & utilities
−1,200
Information
−300
Other services
+1,200
Financial activities
+1,600
Professional & business services
+3,000
Leisure & hospitality
+3,900
Private education & health services
+14,600
Jobs lost over the year Jobs gained over the year

Bar lengths are scaled to keep smaller changes visible; exact figures are shown beside each bar.

+14,600

Private education and health services added over the year, 91% of it in health care and social assistance (+13,300).

+3,900

Leisure and hospitality jobs gained over the year.

−15,100

Government jobs lost over the year, the single largest sectoral decline.

−4,000

Manufacturing jobs lost over the year.

Where Orange County stands among California's 58 counties

Orange County tied for the second-lowest unemployment rate in the state in January, just behind San Mateo County.

Rank County Labor force Unemployment rate
1San Mateo408,6003.8%
2Orange1,606,2004.1%
2San Francisco499,6004.1%
4Marin122,4004.2%
4Santa Clara1,024,7004.2%
6Mono8,1604.3%
7Placer207,9004.4%
8Alameda860,2004.6%
8San Luis Obispo130,5004.6%
8Sonoma244,0004.6%

Statewide, California's labor force stands at 19,622,900, with an unemployment rate of 5.5%.

See business resources Hiring in a growing sector? OWA can help you find and train talent.

Source: California Employment Development Department, Labor Market Information Division. Figures cover the Anaheim–Santa Ana–Irvine Metropolitan Division (Orange County), not seasonally adjusted. Industry employment is by place of work and excludes the self-employed; labor force and unemployment figures are by place of residence and include the self-employed. Data may not sum exactly due to rounding, and labor force estimates are revised in subsequent months.

Reference period: January 2026 (preliminary), with the prior month revised and the prior-year January for comparison.