California’s unemployment rate remained at 5.3% in April, unchanged from March and slightly below its level one year ago. Jobs have not increased or shrunk by much this year so far—though the rate of growth is slightly higher than for the US overall. However, for Californians looking for work or looking to change jobs, a steady labor market may feel more like a stagnant one. Indeed, more Californians today are underemployed, spending more time looking for work, or leaving the labor force compared to recent years.

From January through April 2026, over 10% of Californians were either unemployed, “marginally attached” to the workforce (wanting to work but not actively searching—often because they are discouraged by the job market), or underemployed (working part time when they’d rather work full time). This combined “underutilization” rate has increased slightly since 2022 and remains above its 2019 level.

Job searches overall may be lasting longer because recent growth has been concentrated in a few sectors. Health care, accommodation and food services, and “other services” sectors have seen the strongest job gains since mid-2022, while information, construction, and manufacturing jobs have continued to decline. Government hiring—previously a source of growth—has fallen off, especially at federal and state levels.

Periods of unemployment have become longer over the past few years. The majority (55%) of unemployed Californians in 2026 have been out of work 14 weeks or less, a slight decline since 2023. The share of unemployed Californians who are considered “long term unemployed”—out of work for 27 weeks or more—has increased from about 21% in January–April 2023 to 27% in the same months of 2026. The median period of unemployment for a California worker is about 12 weeks (as of January–April 2026), close to its pre-pandemic level, but the mean is about 26 weeks—indicating that there are job seekers who are unemployed for much longer periods.

After a year, nearly half of unemployed Californians find employment, based on our analysis of data that tracks the same worker over time. However, the share finding work has fallen in recent years. In 2026 so far, about 31% of those who were unemployed one year ago are working full time and 13% are working part time. These patterns are similar to unemployment trajectories before the pandemic, when unemployment rates were at record lows.

Some unemployed Californians are opting to leave the labor force. Thirty-eight percent of Californians unemployed a year ago are out of the labor force today (comparing January-April of 2025 and 2026)—up from 27% for 2022–2023.

There are a number of reasons for leaving the labor force—including retirement, starting school, caregiving responsibilities, and health limitations. But the combination of longer unemployment and a larger share of unemployed workers out of the labor force a year later suggests that a neutral labor market may be less supportive of reemployment than the unemployment rate indicates. People leaving the labor force may also pose a challenge for overall economic growth. There are about 141,000 fewer people in the state’s labor force so far in 2026; roughly as many joined the labor force in each of the previous two years.

California’s labor market is not sending one simple signal. The state has not experienced a sharp downturn, and neither unemployment nor underutilization rates have climbed much recently. However, data on unemployment duration and exits from the labor force suggest that for many Californians, the path back to work is bumpier than it was a few years ago.

For policymakers, it will be important to track these broader indicators beyond the headline unemployment rate. Efforts to help Californians stay connected to work when hiring is slower will also gain importance: timely reemployment services, training connected to in-demand sectors, and attention to barriers such as child care, transportation, and health.