Southern California Hits Record Employment Levels Amid Economic Challenges
Southern California achieved a historic employment milestone in October, with over 8.06 million jobs recorded across Los Angeles, Orange, Riverside, and San Bernardino counties, despite a backdrop of rising interest rates affecting economic activity. The October figures, released from state job statistics, reflected a monthly increase of 65,900 jobs—a slower pace compared to the pre-pandemic average of 92,000 jobs typically added during this period.
This year’s employment growth of 80,700 jobs over the past twelve months pales in comparison to the average annual increase of 159,600 jobs seen from 2015 to 2019. The slower hiring is partially attributed to the Federal Reserve’s stringent interest rate hikes, initiated in March 2022 to counter high inflation, which only recently saw a reduction. While inflation appears to be stabilizing, the consequences of these monetary policies continue to weigh on local businesses.
As employment figures rose, the region’s unemployment rate edged up to 5.6%, compared to 5.5% the previous month and 4.9% a year ago. The number of unemployed individuals rose to 493,400, marking an increase of 59,800 from the prior year. The overall workforce decreased by 60,200 in a single month but showed a modest annual increase.
Regional performance varied, with Los Angeles County maintaining a workforce of 4.62 million, while both Orange and Inland Empire counties reached record employment levels. The government sector emerged as the largest job creator, adding 16,700 positions, while manufacturing faced significant declines.
In summary, Southern California’s job market navigates a complex landscape of record employment alongside rising unemployment, highlighting ongoing economic pressures despite notable job gains across various sectors.
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