California’s job market has entered a new phase with record-high employment levels, but slower growth. A new report by the National University shows the widening gap between shrinking entry-level jobs and surging demand in healthcare and other human-centered fields. For working adults in Southern California, that mix creates both real risk and a huge opportunity to future-proof their careers.
Key Takeaways
- California added roughly 3.7 million nonfarm jobs since 2010 (a 26% increase) but the SCAG region was on track to add only about 22,000 jobs in 2025, its weakest non‑recession year in over a decade.
- More than 6 million Californians under 65 have “some college, no credential,” and another 6.8 million have only a high school diploma, making adult learners central to filling the state’s talent gaps.
- Adults who return to higher education see a 140% increase in average annual salary and are 22% more likely to experience upward economic mobility than similar adults who do not go back to school.
California’s Job Market
Since 2010, California’s job market climbed steadily to reach more than 18 million nonfarm jobs during 2025. That represents roughly 3.7 million additional jobs, or about a 26% increase over 15 years.
But the story is more complicated than a single “all-time high” headline:
- The state hit its peak at the end of 2024, then briefly exceeded 18.0 million jobs again in mid‑2025.
- By December 2025, though, total employment had slipped slightly below the prior year, with a year-over-year decline of about 11,200 jobs (a 0.1% decrease).
Behind those totals, a few sectors stand out:
- Education and health services has become the state’s strongest growth engine, adding over 150,000 jobs in 2025 alone and leading all industries in year-over-year gains.
- Information and tech-related sectors peaked around 2022 and have since gone through a period of restructuring, including layoffs and role shifts across software, media, and entertainment.
- Construction and other goods-producing industries have recovered unevenly since the housing crash, with some regions still working back toward their pre‑recession levels.
For today’s students and working professionals, the message is clear: statewide employment is high, but the mix of jobs is shifting, so traditional entry‑level roles and new career paths are evolving at the same time.
Southern California’s New Job Reality
Nowhere is this tension more visible than in the six‑county Southern California region served by the Southern California Association of Governments (SCAG): Imperial, Los Angeles, Orange, Riverside, San Bernardino, and Ventura. In its 2025 Southern California Economic Update, SCAG describes a “labor market conundrum”:
- The SCAG region was on track to add only about 22,000 new jobs in 2025, the lowest number of new jobs in a non‑recession year in more than ten years.
- Artificial intelligence is reshaping some of the region’s signature industries—high-tech services, television and film, sound recording, high-tech manufacturing, and financial services—by automating tasks that once belonged to early‑career workers.
- Rising youth unemployment. Unemployment for 16‑ to 19‑year‑olds sits at 21.3%, and 20 to 24‑year‑olds face a 9.9% unemployment rate, well above the overall average.
- In the SCAG region, the healthcare industry has added about 261,000 jobs since 2021, an increase of roughly 21% in just a few years. In 2025 alone, healthcare in the region is on pace to add 74,000 jobs, far outpacing many other sectors.
While automation and AI remove certain roles, they also create new specialized jobs, such as machine learning engineers, AI agent engineers, AI ethicists, and AI product managers, that demand advanced training and a solid education foundation. The challenge for Southern California is connecting real people to those new opportunities.
The Adult Learner Advantage
Young workers face tough competition for entry-level jobs. So who can fill the region’s job gaps? More and more, it is adults going back to school. They want to finish a degree, change careers, or learn new skills.
Many adults in California are close to earning a degree:
- More than 6 million Californians under 65 have some college but no degree.
- Another 6.8 million have only a high school diploma.
- About 42% of community college students are 25 or older.
- Many work, raise kids, or care for family while in school. Flexible, online programs help them succeed.
- Adults who go back to school see a 140% bigger pay increase than adults who don’t.
- They are 22% more likely to move up, such as from low-pay to middle-pay jobs.
Adult learners often have more work experience than younger students. They also have clear goals. They want programs that lead to better pay. Going back to school can boost their earnings, especially in high-demand fields.
What This Means If You’re a Working Adult in Southern California
If you are working (or looking for work) in Southern California, the data suggest a few clear takeaways:
- The job market is changing, not collapsing. Overall employment is high, but growth has slowed and shifted toward sectors like healthcare and education.
- Education is a key lever for mobility. Returning to school and completing a credential is strongly associated with larger salary gains and a better chance of upward mobility over time.
- Adult learners are central to the region’s future. With millions of Californians holding some college credit or only a high school diploma, adult learners are essential to filling critical roles in healthcare, human services, and other in‑demand fields.
- Flexible programs matter. Options that offer online courses, evening or accelerated formats, and strong support can make it realistic to earn a credential while balancing work and family.
Many working adults want to move ahead in their careers. To do that, they need programs that fit their lives. The right program meets them where they are. It works with their schooling, their job, and their home life. This helps them build new skills and earn the credentials they need. Employers in Southern California are looking for these skills right now. Want to know which jobs will stay in demand? Read our report on the most future-proof careers to learn more.
Methodology
This report uses public data on jobs and education. It looks at how jobs in Southern California are changing and what that means for adults going back to school.
State job trends come from the California Employment Development Department’s 2025 California Jobs Market Report and from federal job data for California. Regional facts come from the 2025 Southern California Economic Update by the Southern California Association of Governments (SCAG). This report covers new jobs, health care growth, youth unemployment, and the effects of AI.
Data on adult learners comes from the California Community Colleges Chancellor’s Office and the College Futures Foundation’s 2025 State of California Learners research. It also comes from policy briefs on adults with some college but no degree, or only a high school diploma.
Facts on pay gains come from national studies. These studies compare adults who go back to school with similar adults who don’t.
Together, these sources show where jobs are growing and who is most affected by automation and AI. They also show how flexible degrees and certificates can help working adults move into high-demand jobs.
Sources
- California Employment Development Department, 2025 California Jobs Market Report (2025).
- California Employment Development Department, California’s Unemployment Rate at 5.5% for December 2025 (news release, 2026).
- Federal Reserve Bank of St. Louis, All Employees: Total Nonfarm in California (CANA/CANAN).
- Southern California Association of Governments, 2025 Southern California Economic Update (region-wide report and county briefs).
- College Futures Foundation, The 2026 State of California Learners and related State of the Learner address.
- California Community Colleges Chancellor’s Office, Student Enrollment and Demographics data snapshot.
- College Futures Foundation and partners, analyses of Californians with some college and no credential.
- uAspire and California Competes, briefs on adult learners and Californians with only a high school diploma.
- Lightcast, Moving Up and Moving Forward report on adult learners’ earnings and mobility.
- Calbright College, enrollment growth and skills-focused program reports.
