Southern California

The job growth in Southern California has slowed significantly, with recent data revealing that nine of the 15 major employment sectors have seen job cuts over the last year. As of July, the region’s total workforce, which includes Los Angeles, Orange, Riverside, and San Bernardino counties, stood at approximately 7.95 million, representing a modest increase of 55,000 jobs compared to the previous year.

Current Job Market Trends

Despite the increase in total employment, job creation in Southern California remains 47% below the historical average of 104,300 jobs per year since 2010. This decline is attributed to economic uncertainties propelled by new governmental policies that have affected consumer and corporate confidence.

Details on Job Gain and Loss

In the last year, industries that experienced growth collectively added approximately 120,700 jobs, while sectors that faced contractions shed around 65,600 positions. Notable job cuts were seen in the following sectors:

• Manufacturing: Down 18,100 jobs, totaling 544,500 workers.
• Construction: Lost 16,400 jobs, bringing levels down to 362,600 workers.
• Professional and Business Services: Reduced by 9,500 jobs to a current count of 1.12 million.
• Financial Services: Saw a reduction of 8,700 jobs, totaling 48,100 workers.
• Fast-Food Restaurants: Experienced a decrease of 6,800 jobs, with total employment now at 46,900.
• Logistics and Utilities: Down 2,400 jobs, now totaling 794,300 workers.
• Personal Services: Reduced by 1,700 jobs to 265,700 total workers.
• Retailing: Experienced a decline of 1,400 jobs, leaving 718,600 employees.
• Full-Service Eateries: Down 600 jobs, now at a total of 33,100 workers.

Industries with Positive Growth

Conversely, several sectors continued to thrive, adding jobs well beyond their historical average:

• Healthcare: Grew by 39,500 jobs to a total of 871,100.
• Social Assistance: Increased by 36,500, reaching 542,900 workers.
• Government: Added 18,400 jobs, bringing total employment to 996,300.
• Private Education: Grew by 15,400 jobs to 200,900 total workers.
• Hotels and Recreation: Added 6,000 jobs, totaling 284,500.
• Information Technology: Increased by 4,900 jobs for a total of 223,100 workers.

Economic Outlook

Overall, the report highlights an economic cooling in Southern California, with job growth continuing to fall short of previous averages. Companies face numerous challenges that are complicating their ability to create new jobs, leading to a nervous hiring environment.

Frequently Asked Questions (FAQ)

Key Job Market Features