San Luis Obispo County’s Unemployment Rate Dips to 4.8% in September 2025

The unemployment rate in San Luis Obispo County declined slightly to 4.8% in September 2025, according to data released by the Employment Development Department (EDD) on December 12, 2025.

In September 2025, the county’s unemployment rate dropped from a revised 5% in August but remained higher than the 4.1% recorded in September 2024.

By comparison, the unadjusted unemployment rate in California was 5.6%, while it was 4.3% nationwide, according to the EDD data.

A total of 127,500 civilians were employed in September 2025 compared to 6,400 unemployed civilian residents, according to preliminary data.

The unemployment rate is higher compared to last year. In September 2024, 126,000 civilians were employed, while 5,400 civilian residents were unemployed in the county.

Totaling 116,700 jobs, the nonfarming industry posted a loss of 200 jobs in September 2025 from the previous month. However, the sector added 900 jobs from last year. 

These EDD figures are not seasonally adjusted and are subject to monthly revisions.

The release of the September 2025 labor data was delayed due to the federal government shutdown, which ended after over 40 days, according to the EDD. The data was initially scheduled to be released in October. 

Job Gains in the Government Sector

The government sector saw a surge in jobs, adding 400 jobs in September 2025 compared to the previous month, bringing the total to 21,400 jobs. 

At 600 jobs, the federal government remained unchanged since September 2024. 

The state and local government sector added 400 jobs, bringing the total to 20,800 in September 2025, up from 20,300 in the previous year. 

The state government, however, saw 100 job cuts in September 2025 compared to the previous month, and 600 job losses since September 2024. 

The local government sector gained 300 jobs from last month to total 12,200 in September 2025. This year’s figure was also an improvement from 11,100 jobs in September 2024. 

Hospitality Sector Sees Mixed Results

The private education and health services sector added 100 jobs to total 19,500 jobs in September 2025. The figure improved from 18,500 in September 2024. 

Meanwhile, the leisure and hospitality sector recorded a significant drop in jobs, with 400 job losses in September 2025 from the previous month. However, the sector improved its performance from the previous year, up from 19,700 jobs in September 2024. 

Under the leisure and hospitality sector, the accommodation and food services sector lost 200 jobs, the accommodation sector recorded 100 job losses, and the food services and drinking places sector saw 100 job cuts.