As a nonprofit leader, recruiter or job seeker in Southern California, staying ahead of employment trends is critical—whether you’re hiring talent or looking for meaningful work. With recent economic shifts and public sector layoffs, many organizations are asking: is the labor market tightening? And how should nonprofits respond?
Unemployment Trends: LA + San Diego + US
As of March 2025, California’s seasonally adjusted unemployment rate sits at 5.3%, a slight increase from 5.1% the year prior. However, regional differences matter:
- Los Angeles County reports a 5.9% unemployment rate, down slightly from 6.0% in February 2025 but up from 5.5% in March 2024.
- San Diego County shows a healthier 4.2% unemployment rate, down from 4.4% in February and nearly steady compared to 4.1% last year.
- United States: The national unemployment rate was 4.2% in March 2025, up from 4.1% in February 2025, and higher than the 3.9% in March 2024.
These figures indicate that while unemployment is slowly rising in Los Angeles, San Diego’s labor market remains tighter and more stable.
Interpreting the Numbers
The disparity reflects differing economic compositions. San Diego benefits from a diverse economy driven by biotech, tourism, and defense, leading to more resilience. LA’s larger population and heavier reliance on public sector employment make it more sensitive to fiscal tightening—like Mayor Karen Bass’s recent announcement to lay off 1,600 city employees.
Additionally, California’s broader U-6 rate—which includes discouraged workers and those underemployed—was 9.6% in early 2024 and as of March of 2025 was 10.1%, the highest in the nation. This suggests undercurrents of instability beneath the surface of official unemployment figures.
Impacts on Nonprofits
Nonprofits in Southern California, especially in LA, should stay alert to potential ripple effects:
- LA County may see a growing candidate pool, including displaced public sector workers.
- San Diego nonprofits may face more difficulty hiring due to stronger competition for fewer active job seekers.
Tips for Nonprofits
- Monitor Local Trends – Don’t rely on state-level data. County-by-county insights are more useful.
- Tailor Your Recruiting – Consider different sourcing tactics for LA vs. San Diego based on labor supply.
- Pitch Your Mission – Many candidates, especially from the public sector, value mission alignment. Use it.
- Be Flexible – Remote work, part-time roles, or contract-to-hire options can expand your reach.
Tips for Job Seekers in Southern California
- Follow Nonprofit Openings Closely – With some fluctuation in hiring patterns, staying active and checking niche job boards can help you spot opportunities early.
- Highlight Mission Fit – Nonprofits prioritize candidates who align with their cause. Emphasize your values and motivation in your resume and interviews.
- Network Locally – Attend events, webinars, and community forums in your city to build direct connections with nonprofit employers.
- Be Open to New Sectors – If you’re coming from government or corporate work, nonprofits are increasingly open to transferable skills—especially in finance, HR, and operations.
- Upskill Strategically – Certifications in grant writing, nonprofit finance, or DEI (Diversity, Equity, Inclusion) can boost your appeal in a competitive market.
Final Takeaway
While Southern California is not in a labor crisis, nonprofit organizations must pay close attention to regional nuances. A modest rise in unemployment in LA may ease hiring challenges for some roles, while San Diego nonprofits may need to compete more aggressively for top candidates.
By aligning your recruitment strategies with real-time data, you’ll be better positioned to hire smarter, faster, and with mission-focused impact.
Likewise, job seekers who position themselves thoughtfully and authentically in this evolving market can find meaningful work at mission-driven organizations.
