Southern California’s 3.9% unemployment, a historic low: 5 trends to know
Southern California unemployment hit a historic low in March.
In the four counties covered by the Southern California News Group, the combined unemployment rate fell to 3.9 percent vs. 4.2 percent in February, the lowest level in the current database from the state’s Employment Development Department that dates to 1990. The region’s unemployment rate was also at 3.9 percent in December.
Continued hiring by the region’s bosses, although at a slower pace, has pushed joblessness lower. The four-county jobless rate was 4.6 percent in March 2017 and averaged 6.5 percent in 2013-2017.
Orange County had the region’s lowest unemployment: 2.8 percent vs. 3.1 percent in February; 3.7 percent in March 2017; and an average 4.7 percent in 2013-2017. Orange County’s historic low hit 2.2 percent back in December 1999.
Los Angeles County unemployment fell to 4.1 percent, also a historic low. The jobless rate was 4.5 percent in February vs. 4.7 percent in March 2017 an average 6.8 percent in 2013-2017.
In Riverside and San Bernardino counties, unemployment dropped to 4.1 percent, another historic low. That compared to 4.4 percent in February; 5.4 percent in March 2017; and an average 7 percent in 2013-2017.
The limited number of jobless workers in Southern California has made boosting staffs a challenge for bosses and is said to be a reason why the hiring pace has slowed. In the region, 342,800 workers were officially unemployed in March, down 64,000 in a year and well below the 552,406 average of 2013-2017.
That shortfall has forced local bosses to pay up for talent, government figures show. Average weekly wage at private employers in Los Angeles and Orange counties rose 2.8 percent in the 12 months ended in February vs. 1.8 percent annualized gain the previous five years. In Riverside and San Bernardino counties, weekly wages rose at 4.36 percent pace vs. 0.5 percent annually in 2013-2017.
Five March employment trends worth noting …
1. Overall hiring slows
Who added the most non-farm workers in the past year:
Los Angeles County: up 61,700 jobs to 4.47 million. Average annual growth in 2013-17: 79,907.
Inland Empire: up 45,900 to 1.48 million. Average annual growth in 2013-17: 55,653.
Orange County: up 25,400 jobs to 1.63 million. Average annual growth in 2013-17: 38,107.
The four counties combined added 133,000 jobs in a year to 7.58 million. Average annual growth in 2013-17 was 173,667.
2. Hiring pace cools
Where did bosses add workers at the fastest pace, year-over-year?
The Inland Empire grew 3.2 percent vs. 3.9 percent in March 2017; and 4.1 percent average in 2013-2017.
Orange County: grew 1.6 percent vs. 2.2 percent a year earlier; and 2.5 percent average in 2013-2017.
Los Angeles County grew 1.4 percent vs. a year earlier; and 1.9 percent average in 2013-2017.
The four counties combined grew 1.8 percent vs. 2 percent in March 2017; and 2.5 percent average in 2013-2017.
3. Service jobs still strong
Where were workers hired faster in service industries, which include education, medical, logistics and white-collar office work to retail, hospitality and government? This has been the fastest-
growing sector in the recovery from the Great Recession.
Inland Empire grew 3.6 percent vs. 3.5 percent a year ago and 3.9 percent average in 2013-2017.
Orange County grew 1.8 percent vs. 1.9 percent a year ago and 2.6 percent average in 2013-2017.
Los Angeles County grew 1.5 percent vs. 1.8 percent a year ago and 2.1 percent average in 2013-2017.
The four counties combined grew 1.8 percent vs. 2.3 percent a year ago and 2.6 percent average in 2013-2017.
4. Goods-producing job iffy
Where was the fastest hiring pace for industries such as construction and manufacturing? These industries have produced overall disappointing hiring trends.
Inland Empire grew 3.7 percent vs. 2.3 percent a year ago and 5.5 percent average in 2013-2017.
Los Angeles County grew 1 percent vs. a decline of 1.9 percent a year ago and 0.2 percent average growth in 2013-2017.
Orange County grew 0.3 percent vs. 3.4 percent a year ago and 2.4 percent average in 2013-2017.
The four counties combined grew at 1.4 percent vs. 0.4 percent a year ago and 8 percent average in 2013-2017.
5. Hot/cold industries
A look at what sectors in the job market are adding or cutting the most workers at the county level …
Orange County: Largest hirings in last 12 months were in educational and health services, up 10,700 jobs, and professional and business services, up 9,100 jobs. Biggest cuts: Manufacturing, down 1,700 jobs.
Los Angeles County: Largest hirings in last 12 months were in leisure and hospitality, up 21,500, and educational and health services, 19,500. Biggest cuts: “Other” services (down 3,000) and manufacturing (down 1,200).
Riverside and San Bernardino counties: Largest hirings in last 12 months were in trade, transportation, and utilities (up 19,800) and retail (up 4,600). Biggest loss: Information (down 300).
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