Healthcare Drives North Bay Job Growth as Labor Force Shrinks, Creating 'Bizarre' Market Signals

NewsData.io · United States · Sep 20, 2026

California's North Bay region continued adding jobs in August 2026, led by healthcare growth, even as labor forces contracted across all six counties — a paradox that pushed unemployment rates down despite fewer people working. Economist Robert Eyler of Sonoma State University described the trend as 'bizarre,' noting California's labor force fell by over 337,000 workers year-over-year while the seasonally adjusted unemployment rate actually declined. Healthcare is carrying an outsized share of regional job creation, with Solano County seeing roughly 3.2% healthcare employment growth, while construction and manufacturing have lagged. Possible causes for the shrinking labor force include retirements, out-migration, and immigration-related departures, though Eyler cautioned the preliminary data may be subject to significant revision.