Santa Barbara County Unemployment Rises to 5.5% at Start of 2026; Ventura, San Luis Obispo Counties Show Modest Changes

Santa Barbara County’s labor market is showing signs of strain, with unemployment rising, while nearby tri-county areas recorded a bit more modest changes, according to recent data from the California Employment Development Department (EDD).

Unemployment across the tri-county region rose from December 2025 to January 2026. Santa Barbara County’s unemployment went from 4.9% to 5.5%, Ventura County from 4.7% to 5%, and San Luis Obispo County from 4.3% to 4.6%. The figures indicate a continuing softening of the local job market.

Looking closer at month-to-month trends, Santa Barbara County’s unemployment rate in December 2025 rose to 4.9% from 4.6% in November 2025, while still higher than 4.5% in December 2024, according to EDD data.

The increase in the unemployment rate in Santa Barbara County signals a gradual but significant weakening of the local job market.

The rise stands in contrast to the nearby counties of Ventura and San Luis Obispo. 

While the unemployment rate in Ventura County improved to 4.7% in December 2025 from 5% in November 2025, San Luis Obispo County saw the rate slightly drop to 4.3% from 4.6% in the same period. 

In comparison to Ventura and San Luis Obispo counties, Santa Barbara County was the only county to see a clear month-over-month deterioration.

Santa Barbara County unemployment rate historical trend

The increase in the unemployment rate in Santa Barbara may indicate a softening labor market or seasonal layoffs.

Across the tri-county region, the year-over-year data shows a cooling trend compared to December 2024, even though the month-over-month changes were mixed.

In Santa Barbara County, the unemployment rate increased from around 4.5% in December 2024 to about 4.9% in December 2025. 

Ventura County unemployment rate historical trend

The picture was a bit more stable but flat in Ventura County. The unemployment rate held steady at 4.7% year-over-year, indicating that the county had not made much progress from the previous year.

San Luis Obispo County unemployment rate historical trend

Meanwhile, the unemployment rate worsened in San Luis Obispo County, rising to the mid-4% range in December 2025 from the low-4% range in the previous year.

While the overall tri-county economy is not declining, the labor market is losing momentum.

Civilian Employment Trends

In December 2025, Santa Barbara County recorded a civilian labor force of 221,500, with 210,700 people employed and 10,700 unemployed, according to county data. This was a decline from the 217,600 civilians employed in January 2025.

In comparison, Ventura County recorded a civilian labor force of 422,000 in December 2025, which included 402,000 employed and 20,000 unemployed. The civilian labor force marginally increased from 419,900 in January 2025. 

San Luis Obispo reported a total civilian labor force of 131,700 in December 2025, with 126,000 residents employed and 5,700 unemployed. The labor force decreased from 132,400 in January 2025.

Job Losses in Key Sectors

While the uptick in unemployment rate does not point to a sharp decline, the data suggests that there is a cooling trend in some job sectors.

In Santa Barbara County, jobs across all industries totaled 211,300 in January 2026 compared to 218,600 in December 2025 (equivalent to 7,300 job losses). 

Significant job losses were recorded in Santa Barbara County’s farming sector (5,000 job losses), the nonfarming sector (2,300), and the trade, transportation, and utilities sector (1,000) in the same period. 

In Ventura County, jobs across all industries totaled 336,100 in January 2026 compared to 342,800 in December 2025 (equivalent to 6,700 job losses). 

Significant job losses were recorded in Ventura County’s nonfarming sector (5,200 job losses), the trade, transportation, and utilities sector (1,800), and the professional and business services sector (1,500) in the same period. 

In San Luis Obispo County, jobs across all industries totaled 121,700 in January 2026 compared to 123,800 in December 2025 (equivalent to 2,100 job losses). 

Significant job losses were recorded in San Luis Obispo County’s nonfarming sector (2,400 job losses), the trade, transportation, and utilities sector (800), and the government and professional and business services sectors (400 each) in the same period.