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
As younger workers face a more competitive entry‑level landscape, a key question is who can step in to help fill the region’s emerging talent gaps. Increasingly, the answer is working-age adults returning to education to finish a degree, change careers, or build new skills.
California has a large population of adults who are close to a credential but not quite there yet:
- More than 6 million Californians under age 65 have “some college, no credential.”
- Another 6.8 million hold only a high school diploma and no college degree.
- System‑wide data from the California Community Colleges Chancellor’s Office shows that about 42% of community college students are 25 or older.
- Many are working, parenting, or caring for family members while they attend school, which makes flexible and online programs critical to their success.
- Adults who return to higher education see a 140% increase in average annual salary than similar adults who do not go back to school.
- They are 22% more likely to achieve upward economic mobility (for example, moving from low-wage to middle-wage work).
Compared to traditional college-aged students, adult learners often bring more work experience, clearer goals, and a strong desire for programs that lead to real wage gains and upward mobility. Returning to college can significantly improve both earnings and long-term mobility, especially when learners complete programs aligned with 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.
For many working adults, the path forward will be finding programs that meet them where they are—academically, professionally, and personally—so they can build the skills and credentials the Southern California economy now demands. See our report on the most future-proof careers for more.
Methodology
This analysis combines publicly available labor market and education data to understand how Southern California’s job market is changing and what that means for adult learners. Statewide employment trends and sector growth figures come from the California Employment Development Department’s 2025 California Jobs Market Report and federal nonfarm payroll data for California. Regional insights on job creation, healthcare growth, youth unemployment, and the impacts of artificial intelligence draw on the 2025 Southern California Economic Update produced by the Southern California Association of Governments (SCAG).
To quantify the scale and characteristics of adult learners, the study uses data from the California Community Colleges Chancellor’s Office, the College Futures Foundation’s 2025 State of California Learners research, and related policy briefs on Californians with “some college, no credential” or only a high school diploma. Evidence on earnings gains and upward mobility for adults who return to postsecondary education is based on national longitudinal analysis from labor-market researchers comparing returning adult learners with similar adults who do not go back to school. Together, these sources inform the discussion of where jobs are growing, who is most affected by automation and AI, and how flexible degree and certificate pathways can help working adults in Southern California move into high-demand fields.
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 2025 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.
