The Bay Area experienced job losses in December 2024, highlighting economic challenges in the region, even as California posted small employment gains to close out the year.
According to the state Employment Development Department (EDD), the Bay Area shed approximately 1,300 jobs in December, with losses concentrated in the South Bay and East Bay regions. The South Bay lost 800 positions while the East Bay declined by 1,700 jobs.
The San Francisco-San Mateo area provided a bright spot, adding 1,200 jobs during the month.
At the state level, California gained 15,000 jobs in December after seasonal adjustments. However, the state's unemployment rate ticked up slightly to 5.5% from 5.4% in November.
The December job losses in the Bay Area reflect broader economic headwinds facing the region in 2024. The area experienced employment declines in four separate months during the year, amid concerns over inflation, interest rates, and federal economic policies.
California's overall job market showed signs of cooling in 2024. Monthly job gains averaged 17,600 in the first half of the year but slowed to 12,500 in the second half. The state's average monthly gain of 15,000 jobs in 2024 represents a 74% drop from the post-COVID recovery period that began in May 2020, when California averaged over 57,000 new jobs per month.
While the Bay Area generally added jobs through most of 2024, the December decline highlights ongoing economic uncertainties as the region enters 2024.