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Bay Area, California both lose jobs in February as hiring surge halts

George Avalos, The Mercury News on

Published in Business News

The Bay Area and California both lost thousands of jobs during February, a disquieting report that raises questions about the strength of the economy in the state and this region.

The job losses in the nine-county region and statewide suggest that the hiring boom that began in the final few months of 2023 and extended into January of this year has been interrupted, at least for now.

The Bay Area lost 4,200 jobs in February, according to a state Employment Development report released Friday.

The employment reductions in the nine-county region were triggered primarily by job losses in the tech industry and in construction. Bay Area hotels, restaurants and healthcare firms added jobs in February at a brisk pace, according to a Beacon Economics assessment of the state EDD reports.

“The Bay Area continues to be the epicenter of job loss in California,” said Scott Anderson, chief U.S. economist for BMO Capital Markets.

California shed 3,400 jobs last month, a setback that terminated six straight months of employment gains statewide, the EDD estimated.

 

The statewide jobless rate worsened to 5.3% in February, up from 5.2% in January, according to the EDD monthly report.

The latest state unemployment figures are far worse than California’s record-low unemployment rate of 3.8%, which occurred well over a year ago, in August 2022.

All three of the Bay Area’s largest metro centers lost jobs in February. Here’s how they fared:

— The South Bay lost 100 jobs in February.

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