California and Nevada are tied for the nation’s second-highest unemployment rate.
Each state saw a rate of 5.4% in June, according to the U.S. Bureau Of Labor Statistics. The number rose 0.1% from May in California and dropped by the same amount during that period in Nevada.
The highest jobless rate for June remained in Washington, D.C., with 5.9%. The bureau said nonfarm payroll employment was “essentially unchanged” since May in the nation’s capital and 35 states.
In California, the number of nonfarm payroll jobs dropped by 6,100, according to the state Employment Development Department. The decrease followed a job gain of 11,700 positions for May.
Four of the Golden State’s 11 industry sectors gained jobs in June. The highest increase was in “Private Education and Health Services,” which saw an increase of 9,900 positions, a gain for the 41st consecutive month. “Leisure and Hospitality” saw an additional 4,300 jobs.
The department said the largest decrease in jobs were 9,900 that were lost since May for “Professional and Business Services.”
Nevada’s rate trickled down to 5.4% in June – its lowest in over a year – but at only a small improvement from May’s 5.5%, according to the state Department of Employment, Training and Rehabilitation. Within Nevada, more government jobs were lost than any other sector, while questions remained about long-term trends.
“We’ve been through this growth phase, and I think we’re calming down,” David Schmidt, the department’s chief economist, told The Center Square. “When Nevada was growing by 6% [annually] in people, it made sense to be growing 6% economically.”
In the post-COVID-19 pandemic boom, population and economic growth soared in the Silver State, but in recent months, these trends have cooled.
“You can only sustain employment growth if you’re bringing in more people, or employing more of your people,” said Schmidt. “I think looking ahead, job growth at or around 1% is a lot more reasonable.”
Across the last year, nonfarm employment in Nevada has only increased by 0.3%. While some states have experienced job market declines, Nevada’s 5.5% in May still sat second-highest for national unemployment rankings, only behind Washington, D.C.
Jobs lost in the government sector were higher than any other in June at 4,100 seasonally adjusted. Despite headlines over federal cuts, Schmidt was not yet convinced those were to blame for the decline.
“It’s not federal. It’s state and local government,” said Schmidt, who added that most of the sector’s change was education-related. He noted many bus drivers and cooks in school districts see their jobs interrupted by the students’ summer break.
While those non-teacher education jobs often drop across the summer, the large dip may still be part of a larger trend.
“It could also just be something as simple as more teachers than usual retiring, and more will come in when the school year restarts,” said Schmidt. “It’s a larger than average swing, and when we get to data in November, we can see if this is a shift, but for now we can’t say … If we rebound to a lower level, then some of this is probably a response to federal cuts.”
Strains on the housing market were also reflected in the June unemployment report, with 1,500 construction jobs lost after seasonal adjustments.
“I do think that we’re seeing some tightness there, because of the housing market,” said Schmidt. “I don’t think it’s a bad housing market like you would have seen in 2009-2010, but it’s coming down a little bit.”
Across 2025 and likely for the foreseeable future, the state’s economic rebound has begun the transition to a slower pace of growth, with more stability. For Nevadans looking to find work or fill open positions, the DETR recommends employNV.gov.
The nation’s lowest jobless rate in June was in South Dakota with 1.8%, the U.S. Bureau of Labor Statistics reported. Eighteen states had rates lower than the national unemployment rate of 4.1%.
