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Real-time labor market data · May 2026

Unemployment falls to 3.5%, the lowest in two years

Orange County's unemployment rate dropped to 3.5% in May, its lowest point on record in this data, as leisure and hospitality added 3,900 jobs, the most of any sector. Nonfarm payrolls are still down 7,300 from a year ago, driven almost entirely by a steep decline in local government.

Orange County unemployment
3.5%
Down 3.7% in April 2026 · down from 3.7% a year ago
California unemployment
4.7%
1.2 points above Orange County
U.S. unemployment
4.1%
0.6 points above Orange County

The two-year trend

May's 3.5% is the low point of the past two years, capping a steady climb down from last summer's 4.8% peak.

3.0% 3.5% 4.0% 4.5% Jun '24: 4.1% Jul '25 peak: 4.6% May '26 low: 3.5% May '26: 3.5% Jun '24 Jun '25 May '26

Swipe left to see the full two-year chart →

What moved this month

Leisure and hospitality led May's gains, adding 3,900 jobs across accommodation, food service, and entertainment. Professional and business services posted the month's only notable decline, down 800 jobs.

Professional & business services
−800
Government
−300
Private education & health services
−100
Information
+100
Manufacturing
+400
Trade, transportation & utilities
+400
Financial activities
+400
Other services
+400
Mining, logging & construction
+1,100
Leisure & hospitality
+3,900
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 and leisure and hospitality together added 17,000 jobs over the year, but government's 16,800-job decline kept the year-over total negative.

Government
−16,800
Manufacturing
−3,100
Mining, logging & construction
−2,500
Professional & business services
−1,300
Information
−900
Trade, transportation & utilities
−400
Other services
+200
Financial activities
+500
Leisure & hospitality
+6,200
Private education & health services
+10,800
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.

+10,800

Private education and health services added over the year.

+6,200

Leisure and hospitality jobs gained over the year.

−16,800

Government jobs lost over the year, 90% of it in local government (−15,200).

−3,100

Manufacturing jobs lost over the year.

Where Orange County stands among California's 58 counties

Orange County tied for fifth-lowest unemployment in the state in May, alongside Mono County.

Rank County Labor force Unemployment rate
1San Mateo404,5003.1%
2San Francisco494,3003.3%
3Marin122,5003.4%
3Santa Clara1,021,4003.4%
5Mono8,5203.5%
5Orange1,598,2003.5%
7Napa75,1003.6%
7Placer206,6003.6%
7San Luis Obispo132,2003.6%
10Inyo8,2903.7%

Statewide, California's labor force stands at 19,475,800, with an unemployment rate of 4.7%.

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