Los Angeles County Unemployment Rate Drops to 6% in January

Categories: Breaking NewsEconomyGovernment NewsNews

A bustling scene in Los Angeles representing the workforce and economic activity in the city.

News Summary

Los Angeles County has reported a decrease in its unemployment rate to 6% in January, slightly better than December’s rate. However, this figure reflects a rise from the previous year, indicating ongoing challenges in the job market. Despite the drop, the county experienced significant job losses, particularly in the trade and transportation sectors. Across California, statewide unemployment rates have also shown a slight decline, but many regions are still struggling with job cuts and economic instability.

Los Angeles County Sees Unemployment Rate Tumble to 6% in January

Los Angeles County has kicked off the new year with a slight decrease in its unemployment rate, dipping to 6% in January. This figure is just a tad better than the revised 6.1% in December 2024. However, on a year-over-year basis, it’s up from 5.4% in January 2024, showing how turbulent the job market has been.

A Broader Look at California’s Unemployment Landscape

Across the state of California, the picture looks somewhat similar. The statewide unemployment rate ticked down to 5.4% in January from 5.5% in December. Unfortunately, it’s still higher than the 5.1% recorded a year ago. In neighboring Orange County, the unemployment rate was at 4.1%, which is a noticeable jump from 3.7% in December and a bit above 3.9% a year ago.

Job Losses in Los Angeles

Despite the slight dip in unemployment rates, Los Angeles County is facing significant job losses. The county’s total nonfarm employment saw a decrease of 99,500 jobs from December to January, leaving nearly 4.55 million people employed. The trade, transportation, and utilities sector was particularly hard hit, shedding 24,100 jobs during that period. Ouch!

Meanwhile, Riverside County’s job market showcases a less rosy picture. The unemployment rate there climbed to 5.3% in January, up from 5% in December, and staying 0.2% lower than the year-ago mark of 5.5%. This increase was mainly due to payroll losses hitting the regional economy hard.

Inland Empire’s Challenges

The combined unemployment rate for Riverside and San Bernardino counties in the Inland Empire stood at 5.3%, an increase from 4.9% in December. In San Bernardino County, the unemployment rate was 5.2%. For a more localized view, the small community of Mecca has the highest unemployment rate in Riverside County at a staggering 12.9%! Cherry Valley and Coachella recorded rates of 9.6% and 8.7%, respectively.

Sector-Specific Job Losses

Looking deeper, the Inland Empire has not escaped unscathed in terms of sector job losses. The trade, transportation, and utilities sectors alone reported a decline of approximately 23,400 positions. Furthermore, additional losses were recorded across a number of sectors including agricultural, construction, financial services, health services, hospitality, IT, manufacturing, and professional business services, tallying up to a combined total of 16,000 lost jobs. Even miscellaneous unclassified industries couldn’t avoid the job cuts, resulting in 1,000 layoffs.

Looking Ahead

These numbers were released by the Employment Development Department (EDD) during an annual revision process known as “benchmarking,” aimed at fine-tuning the accuracy of employment statistics. This revision process is expected to conclude at the end of this month, after which we anticipate the release of February’s jobless numbers. Fingers crossed for better news ahead!

As Los Angeles County and surrounding areas navigate through these ups and downs in employment figures, staying informed and prepared will be key. Whether you’re on the job hunt or just keeping an eye on the economy, the path ahead is sure to be filled with twists and turns.