South Bay job growth drives state employment gains in May

The South Bay added more jobs than any other California metro area in May, extending an 11-month growth streak even as the broader Bay Area labor market stalled, the state Employment Development Department reported Friday.

Adjusted for seasonal volatility, the South Bay gained 2,400 jobs last month, outpacing Los Angeles, San Diego, Fresno and Orange counties, according to the EDD. The San Francisco-San Mateo region added 600 jobs, while the East Bay lost 2,200.

The Bay Area overall was essentially flat in May, with South Bay and San Francisco Peninsula gains offset by losses in the East Bay and parts of the North Bay. The uneven performance underscores how much of the region's job growth is being driven by Silicon Valley.

“The South Bay continues to be the only Bay Area sub-region with consistent job growth,” said Jeff Bellisario, executive director of the Bay Area Council Economic Institute. “It has benefited from a rebound in high-tech manufacturing. Its growing population has allowed for an increase in local serving roles.”

Tech accounted for about half of the South Bay's May gains, according to seasonally adjusted figures Beacon Economics provided to this news organization.

The Bay Area gained 1,100 tech jobs in May, according to Beacon Economics. The industry added 1,200 jobs in the South Bay and 500 in the East Bay. Those gains were offset by a loss of 500 tech jobs in the San Francisco-San Mateo region and a decline of 100 in Marin County, Beacon estimated.

“Within tech, it’s important to remember that there is increasing demand at the high end for engineers, architects, people who do massive computational processing, big data, the labor going into data centers, and more,” said Russell Hancock, president of Joint Venture Silicon Valley, a San Jose-based think tank.

Other strong South Bay industries, according to Beacon estimates, were construction, which added 600 positions, manufacturing, which added 600 jobs and hotels and restaurants, which gained 200 roles.

In the North Bay, Napa County gained 300 jobs in May, while Solano County lost 800, Sonoma County shed 200 and Marin County lost 100.

Over the one-year period that ended in May, nonfarm payroll job totals increased by 1.5% in the South Bay, 0.9% in the San Francisco-San Mateo region, 0.8% in the Bay Area, 0.6% in California, and 0.1% in the East Bay. Nationwide job totals rose by 0.3% over the same 12 months.

“Nearly a third of net jobs added statewide in the last year were in the Bay Area, despite the region only comprising 22% of California payrolls,” said Justin Niakamal, Beacon Economics manager of regional analysis. “The area’s definitely punching above its weight in terms of overall growth.”

During the year-long period ending in May, California added 102,900 jobs and the Bay Area gained 32,100. The South Bay alone added 17,300 positions.

California added 3,100 jobs in May. The statewide jobless rate was unchanged at 5.3%, the EDD reported.

But the job market in California remains frail, said Michael Bernick, an employment attorney with law firm Duane Morris and a former director of the state EDD.

"California job growth lagged behind the national growth rate in May as it did in April,” Bernick said. “Only gains in healthcare and hospitality prevented the state from showing a net loss of jobs in the month.”

Adjusted for seasonal volatility, Los Angeles County added 2,200 jobs, San Diego County added 1,600, Fresno County added 1,200 and Orange County gained 1,100, according to the EDD report.

The Bay Area's flat overall performance in May serves as a reminder that the region’s job sector continues to face uncertainty, even as the South Bay keeps adding positions.

“Looking regionwide and statewide, the economic story has not materially shifted, as we expect 2026 to be neutral in terms of employment changes,” Bellisario said.

That means people looking for work might still face a rough ride, Bernick warned.

“Job seekers I coach, with college degrees or above, are applying to more than 70 or 100 jobs,” Bernick said. “It’s so difficult to get almost any job and most difficult to get a white-collar job of decent pay.”

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This story was originally published June 19, 2026 at 12:23 PM.