South Bay job growth drives state employment gains in May
The South Bay was California's most powerful employment engine in May, continuing a monthslong trend of job gains, the state Employment Development Department reported Friday.
While the Bay Area as a whole experienced a flat month with no changes in employment, the South Bay has now added jobs for 11 consecutive months.
The tech industry fueled much of the South Bay's hiring boom during May, as indicated by seasonally adjusted figures for an array of industries that Beacon Economics provided to this news organization.
"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."
Adjusted for seasonal volatility, the South Bay added 2,400 jobs in May and the San Francisco-San Mateo region added 600. The East Bay, however, lost 2,200 jobs, according to the state EDD.
In the North Bay for the month of May, Napa County gained 300 jobs, Solano County lost 800, Sonoma County shed 200, and Marin County lost 100.
The South Bay's gains were greater than every other metro area in the state, including far-larger Los Angeles County, this news organization's review of information that the state EDD posted on its website showed.
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, the Bay Area gained 32,100 positions, and the South Bay added 17,300 jobs. This means the South Bay accounted for over half of the Bay Area's gains and about one out of every six jobs added statewide during the 12 months.
California added 3,100 jobs in May. The statewide jobless rate was unchanged at 5.3%, the EDD reported.
The job market in California overall appears feeble, in the view of 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 health care and hospitality prevented the state from showing a net loss of jobs in the month."
The Bay Area gained 1,100 tech jobs during May, according to seasonally adjusted calculations that Beacon Economics derived from the official EDD report.
The tech industry added 1,200 jobs in the South Bay and another 500 in the East Bay. These upswings more than offset a loss of 500 tech jobs in the San Francisco-San Mateo region and a decline of 100 tech jobs 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, as shown by the Beacon estimates, were construction, which added 600 positions, manufacturing, which added 600 jobs, and hotels and restaurants, which gained 200 roles.
Here's how the South Bay's gain of 2,400 jobs stacked up against other metro areas - several with significantly larger job bases and populations - during May.
Los Angeles County added 2,200 jobs, San Diego County added 1,600 positions, Fresno County added 1,200 jobs, and Orange County gained 1,100 positions, according to the EDD report. These numbers were adjusted for seasonal volatility.
The flat performance for the Bay Area labor market in May, even in light of the big increase in the South Bay, serves as a reminder that the region's job sector continues to face uncertainty.
"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.
This means that people who are scouting for a job might still face a rough ride to find employment, 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 5:50 PM.