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Hiring in California Data as of August 2026

Hiring in California: labor market, wages and rules for employers

Hiring in California means a large labor pool, pay that often runs above national medians, and posting rules that put your pay range in front of every candidate. Here is what the data means for your recruiting.

California's unemployment rate sits at 5.1%, above the U.S. rate of 4.2%. It is also down from 5.5% a year earlier. More people are looking than in many states, but the pool is tightening, and a labor force of 19.50 million spreads those candidates across a lot of competing employers.

The statewide job openings rate is 3.6% against a hires rate of 3.2%. Openings are outpacing hires. A quits rate of 1.7% suggests many workers are staying put, so the people actively applying are the ones you need to reach first. Speed and clear pay information decide who gets them.

The sections below cover the labor snapshot, wages for common high-volume roles, the industries doing the most hiring, and the state rules that shape how you post and screen. Each section ends with what to do about it.

Labor market snapshot

California labor market at a glance.

California unemployment rate

5.1%

August 2026 (preliminary); 5.5% in August 2025

data.bls.gov

Labor force

19.50 million

August 2026 (preliminary)

data.bls.gov

Nonfarm payroll jobs

18.18 million

August 2026 (preliminary); +0.8% over the year

data.bls.gov

Job openings rate

3.6%

December 2025

data.bls.gov

Hires rate

3.2%

December 2025

data.bls.gov

Quits rate

1.7%

December 2025

data.bls.gov

California minimum wage

$16.90/hr

effective 2026-01-01

dir.ca.gov

Unemployment above the national rate gives you more applicants per opening, but openings still outnumber hires, so slow follow-up loses candidates. Nonfarm jobs grew +0.8% to 18.18 million, which means demand is steady rather than surging.

Sources: U.S. Bureau of Labor Statistics (LAUS, CES, JOLTS). "Preliminary" figures may be revised. Retrieved October 15, 2026.

Wages

What high-volume roles pay in California.

Hourly wages for selected occupations, May 2025 (BLS OEWS). 10th/90th percentile show the typical low and high end of pay.
Occupation10th pct.Median90th pct.Employed
Sales representatives of services $20.79$38.87$81.11156,110
Sales representatives, wholesale and manufacturing $20.77$36.78$73.44134,800
Telemarketers $16.50$22.12$29.043,880
Customer service representatives $18.32$23.83$36.39176,850
Retail salespersons $16.94$18.48$26.11376,460
Cashiers $16.71$17.84$23.53336,110
Laborers and freight, stock, and material movers $17.34$21.50$27.74355,500
Fast food and counter workers $17.08$20.33$23.05449,840
Janitors and cleaners $17.12$19.75$28.34234,240
Sales managers $30.98$64.86$144.51112,440

Most hourly roles in the table pay above their national medians, and the low end of several roles sits close to the state minimum of $16.90, so entry offers have little room to go lower. Services sales pay runs from $20.79 to $81.11, a spread that reflects commission, so candidates will want to see how base and variable pay fit together.

Top industries

Who is hiring in California, and for what.

1.Private education and health services

+3.8% yr/yr

3.64 million jobs · 20.0% of nonfarm employment · August 2026

  • Home health and personal care aides
  • Medical assistants and clinic staff
  • School and childcare support staff

With Private education and health services growing +3.8% and holding 20.0% of jobs, aides and clinic staff will have options, so keep a standing pipeline and contact applicants the same day.

2.Trade, transportation, and utilities

+0.9% yr/yr

3.07 million jobs · 16.9% of nonfarm employment · August 2026

  • Warehouse and material movers
  • Delivery and route drivers
  • Retail and wholesale sales associates

Trade, transportation, and utilities grew a modest +0.9% at a 16.9% share, so warehouse, driver and retail hiring stays steady and rewards repeatable, high-volume workflows.

3.Professional and business services

−0.6% yr/yr

2.74 million jobs · 15.1% of nonfarm employment · August 2026

  • Customer service and contact-center reps
  • Outbound sales and telemarketing
  • Administrative and staffing-agency roles

Professional and business services slipped −0.6%, so contact-center and admin candidates may be easier to find and worth targeting for customer-facing roles in other sectors.

4.Leisure and hospitality

+2.3% yr/yr

2.06 million jobs · 11.3% of nonfarm employment · August 2026

  • Servers and cooks
  • Hotel and resort housekeeping
  • Front-desk and event staff

Leisure and hospitality grew +2.3% at 11.3% of jobs, so plan for recurring surges in server, cook and housekeeping hiring rather than one-off postings.

5.Manufacturing

−0.8% yr/yr

1.20 million jobs · 6.6% of nonfarm employment · August 2026

  • Production and assembly workers
  • Machine operators
  • Quality and shipping staff

Manufacturing fell −0.8%, which may make production and machine operators available to logistics and warehouse employers with similar skill needs.

Private education and health services is the largest sector at 20.0% of jobs and the fastest growing at +3.8%, so expect the most competition for care and clinic roles. Professional and business services and Manufacturing are pulling back, which can free up experienced workers for other sectors.

Hiring rules

California hiring rules at a glance.

California sets its own rules on background checks, fair chance hiring, minimum wage, non-competes and pay transparency, and they apply on top of federal requirements. This is general information, not legal advice, so confirm current requirements with the relevant state agency or your counsel before changing your process.

Background checks (California)

In effect

California limits employer use of arrest records and consumer credit reports in hiring, on top of the federal FCRA.

  • Employers may not ask applicants about arrests that did not lead to conviction, diversion participation, or dismissed or sealed convictions (Labor Code 432.7).
  • Employers may use a consumer credit report only for listed positions, such as managerial roles (Labor Code 1024.5).
  • California's own consumer credit and investigative consumer reporting acts add notice and disclosure rules for background reports.
Source: California Department of Industrial Relations, Labor Commissioner's Office · checked October 15, 2026

Ban-the-box / fair chance (California)

In effect · 2018-01-01

California's Fair Chance Act bars employers with five or more employees from asking about conviction history before making a job offer.

  • Covered employers may run a background check only after a conditional offer, and must follow an individualized assessment process before rescinding it.
  • The Civil Rights Department enforces the law as part of the Fair Employment and Housing Act.
Source: California Civil Rights Department · checked October 15, 2026

Minimum wage (California)

In effect · 2026-01-01

California's statewide minimum wage is $16.90 an hour in 2026 and rises to $17.40 on January 1, 2027; many cities set higher local rates.

  • No tip credit is allowed, so tipped employees must also receive the full minimum wage in cash wages.
  • Fast food workers and certain health care workers have separate, higher state minimum wages.
  • Cities and counties may enact their own higher minimum wages, and the stricter standard governs.
  • The 2027 increase also lifts the minimum annual salary for overtime-exempt employees to $72,384.
Source: California Department of Industrial Relations, Labor Commissioner's Office · checked October 15, 2026

Non-compete agreements (California)

In effect · 2024-01-01

California voids employee non-compete agreements, and since January 1, 2024 it is also unlawful for employers to enter into or try to enforce them.

  • SB 699 applies even when the agreement was signed outside California, and gives employees a right to sue.
  • AB 1076 codifies that existing employment non-competes are void unless a statutory exception applies.
Source: California Attorney General's Office · checked October 15, 2026

Pay transparency (California)

In effect · 2023-01-01

California employers with 15 or more employees must put a pay scale in every job posting, and all employers must give applicants and employees the pay scale on request.

  • The pay scale is a good-faith estimate of the salary or hourly range the employer reasonably expects to pay.
  • The Labor Commissioner applies the posting rule to positions that may be filled in California, including remotely.
  • Employers using a third party to post jobs must supply the pay scale to that third party.
Source: California Department of Industrial Relations, Division of Labor Standards Enforcement · checked October 15, 2026

General information, not legal advice.

Employment rules change and have exceptions that depend on employer size, industry and facts. This summary reflects the sources shown as of the dates shown (legal sources checked October 15, 2026). Confirm requirements with the relevant agency or qualified counsel before acting. For a deeper look at California's hiring-compliance laws, see our California hiring compliance guide.

Recruiting in California: tactics that fit this market

Reply within the hour, by text

Openings at 3.6% outpace hires at 3.2%, so the first employer to respond often wins the candidate. Send an automatic text when an application arrives and offer an interview slot in the same message. Reserve email for documents and confirmations.

Lead with the pay range, and explain commission

Covered California employers must include a pay scale in job postings, so make it the first thing candidates see. For sales roles, where pay runs from $20.79 to $81.11, show the base and describe how commission works. Candidates screen out vague ranges quickly.

Build a standing pipeline for care and clinic roles

Private education and health services is growing +3.8%, the fastest of the top sectors. Keep apply pages open year-round, tag qualified applicants by location and shift, and re-contact them when a new opening appears instead of starting from zero.

Sequence screening around fair chance rules

California's Fair Chance Act bars covered employers from asking about conviction history before a job offer. Remove those questions from applications and early screens, and lock compliant language into your templates so every location uses the same wording. Confirm the details with counsel.

Recruit across sectors that are pulling back

Manufacturing fell −0.8% and Professional and business services fell −0.6%. Segment past applicants with production, shipping or customer service experience and send targeted outreach for warehouse, logistics and contact-center roles.

Your next 30 days of hiring in California

  1. Add a pay scale to every open California job posting.
  2. Remove conviction-history questions from applications and first-round screens.
  3. Set up an automatic text that goes out when an application is received.
  4. Check every offer against the state minimum of $16.90 and any higher local rate.
  5. Segment past applicants by role and skills for re-engagement campaigns.

Where ATS Mako fits a California hiring plan

California's problem is speed under competition: openings outpace hires, and the candidates who apply are weighing several offers. Conversational SMS and automations let you reply to applicants in one inbox and trigger messages on status changes, so no one waits for a recruiter to get to them. Interview scheduling with self-service booking lets candidates pick a slot without a phone chase. For high-volume roles in care, logistics and hospitality, bulk actions let you message and move large groups of candidates at once.

California FAQ

California hiring questions, answered.

How much should I pay for hourly roles in California?

Most common hourly roles pay above their national medians here. For example, retail salespersons have a median of $18.48 against $17.03 nationally. The statewide minimum is $16.90 and many cities set higher local rates, so check the rate where the job is located.

Do I have to include pay in my California job postings?

California requires employers with fifteen or more employees to put a pay scale in every job posting, and all employers must provide the pay scale to applicants and employees on request. This is general information, not legal advice. Confirm the details with the state agency or your counsel.

When can I ask about criminal history?

California's Fair Chance Act bars employers with five or more employees from asking about conviction history before making a job offer. The state also limits use of arrest records and consumer credit reports in hiring. Review your applications and screens with counsel to confirm they comply.

How fast do I need to respond to applicants?

Fast. Openings at 3.6% outpace hires at 3.2%, so candidates have choices. An automatic acknowledgment and an interview link sent the same day keeps them from moving on to another employer.

Can I text candidates about jobs?

Yes, with consent. Get clear opt-in consent before sending recruiting texts, identify your company in messages, and honor STOP requests right away. Keep a record of consent for each candidate.

How do I handle high-volume hiring across several locations?

Give each location its own apply page so applicants land in the right pipeline. Use shared templates so messaging stays consistent, and use bulk actions to move or message groups of candidates at once. That keeps one team in control without slowing any single site down.

Keep exploring.

Sources and data currency

Labor data as of August 2026; wage data May 2025; rules checked October 15, 2026. Next scheduled review: January 13, 2027. This page is educational market information for employers.

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