Unemployment down from previous years, still highest in the county

San Martin takes the prize of having the highest unemployment rate in the county, with Gilroy and Morgan Hill obtaining ribbons for second and third place.  

According to California’s Employment Development Department, San Martin’s unemployment rate is 18.3 percent, which more than doubles the rate of most other towns, cities and unincorporated areas in the county. 

Gilroy’s unemployment rate is 11.6 percent and Morgan Hill’s is 10 percent.

Despite lagging behind the rest of the county, Gilroy’s unemployment rate is the lowest it’s been in five years.  

Last year, Gilroy’s unemployment came in at 13.1 percent, which at the time was the lowest rate in last three years. It peaked at 17.5 percent in January 2010. The last time it was below 11.6 percent was in December 2008, when it was 11.4.

There are 4,800 unemployed people in South County, according to data from the state. The majority of these are in Gilroy (2,600), with another 1,800 coming from Morgan Hill. Despite having the highest rate in the county, there are only 400 unemployed people in San Martin. 

In comparison, areas with the lowest unemployment rates in the county are Saratoga (3.8 percent), Los Altos (3.9 percent), Palo Alto (4.1 percent) and Cupertino (4.9 percent).