Silicon Valley unemployment rate drops

The Silicon Valley leisure and hospitality sector posted the most new jobs last month but still remained the highest unemployed sector, according to state numbers released today.

It reflects a general trend that the industry sectors that were most affected by the shutdown due to the pandemic tended to have the largest job gains in June, according to the California Employment Development Department’s monthly report on unemployment.

Silicon Valley Snapshot

The unemployment rate in the San Jose-Sunnyvale-Santa Clara area was 10.8 percent in June, down from 11.3 percent in May 2020, according to the California Employment Development Department’s monthly report. It’s better than the rest of the state, which loomed at about 14.9 percent, and slightly lower than the nation’s unemployment rate of 11.2 percent.

Last year at this time unemployment was a mere 2.7 percent for Silicon Valley.

Santa Clara Drops to 6th in California

Santa Clara County ranked sixth lowest unemployment rate in the state at 10.7 percent. Before us was:

1 – Lassen County (9.5%)
2 – Trinity County (9.8%)
3 – Marin & Modoc counties (10%)
5 – Yolo County (10.7%)

Nine counties delivered unemployment rates above 15%. Imperial County reported the highest rate of 27.3% and Mono County followed as the second highest rate with 24.7%.

Job Gains in Silicon Valley

From May to June, we added an estimated 41,200 jobs to reach 1,064,100 in the San Jose-Sunnyvale-Santa Clara area, which includes Santa Clara and San Benito counties. The unemployment rate was 13.8 percent in San Benito County, and 10.7 percent in Santa Clara County.

Here’s the breakdown of good news from last month:

  • 19,000 jobs added in leisure and hospitality
  • 6,300 jobs added in construction
  • 5,600 jobs added in private educational and health services
  • 3,700 jobs added in other services
  • 2,800 jobs added in health care
  • 2,200 jobs added in social assistance
  • 600 jobs added in private educational services
  • 2,600 jobs added in manufacturing
  • 2,200 jobs added in trade, transportation, and utilities (up 2,200 jobs),
  • 2,000 jobs added in professional and business services
  • 1,500 jobs added in information

Meanwhile, the government sector lost about 1,800 jobs, primarily in local educational services.

California Unemployment Rate Drops to 14.9%


California employers added 558,200 nonfarm jobs in June. Despite the state’s drop in unemployment to 14.9 percent ·(down from a record high of 16.4 percent in April and May) it’s still higher than the 12.3 percent of the Great Recession of 2010.


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