California job growth gains momentum in March, led by healthcare sector

California job growth gains momentum, led by healthcare sector

The Golden State added 28,700 payroll jobs in March, with the vast majority of those gains occurring within the healthcare industry.

SACRAMENTO, Calif. - California’s labor market showed signs of growth in March as the state added 28,700 payroll jobs, contributing a significant portion to the 178,000 new jobs created nationwide.

By the numbers

The healthcare sector acted as the primary engine for this growth, accounting for 27,000 of the state's total new positions. 

What they're saying:

According to Michael Bernick – an employment lawyer and former Employment Development Department Director now with the law firm Duane Morris – the biggest winners within the sector were home healthcare services, long-term care facilities and healthcare practitioners.

"We still have an economy that's highly driven by job growth in the healthcare sector," Bernick said.

While healthcare flourished, two white-collar sectors experienced a slight retraction. The information and professional and business services categories saw a combined loss of 5,700 jobs over the month.

Big picture view:

The state's overall unemployment rate edged down from 5.4% to 5.3%. 

Despite the decline, California continues to lag behind the rest of the country, sitting well above the national unemployment rate of 4.3%.

Looking ahead, experts point to defense, aerospace, and artificial intelligence as the industries with the brightest hiring futures. 

Bernick noted that increased investment in defense and aerospace is expected to bolster Southern California’s economy, while AI remains the dominant force for job growth in the Bay Area.

Global view

Economists are also closely monitoring global stability. 

While the ongoing Iran War has not yet impacted state employment, Bernick warned that future impacts will depend on the stability of global supply chains. 

If the flow of critical commodities like oil, natural gas, and metals is disrupted, the state could see job losses reminiscent of the disruptions seen during the pandemic.