Southern California bosses grew their staffs to record levels this summer, even though job creation is running at almost half the pace we’ve seen in the past.
My trusty spreadsheet looked at state job counts released Friday, Sept. 18, and found there were 10 million jobs in August across Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura and Imperial counties. These stats are adjusted for seasonal hiring swings.
August is a perfect example of an economy that’s sending many mixed messages.
The month marked the region’s third record-high job count so far this year. But the 47,000 workers added over 12 months is far slower than the 80,400 annual growth rate Southern California has averaged during the past 10 years.
Yes, there have never been more jobs in Southern California. But the caveat to the good news is that local bosses are adding jobs at a pace that’s 42% below average – and that’s bad news for job seekers.
Locally speaking
Let’s look at this mixed message at the local level.
Across the region’s six job markets, five saw an increase in workers in August, and one was unchanged. Yet, job creation trailed 10-year norms in four of the six markets.
The Inland Empire was the farthest below par. Its 1.72 million jobs were up 7,300 in a year. But historically speaking, 31,500 jobs were added yearly since 2016. So, the region’s job creation is running 77% below average.
Next weakest was Orange County. It had 1.69 million jobs, up 6,300 in a year compared to its historical average of 10,400 jobs created per year. So, O.C.’s pace is 39% below its 10-year norm.
Los Angeles County had 4.62 million workers, up 17,400 in a year. But its 10-year pace has been 21,000 added yearly, leaving August 17% below par.
In Ventura County, its 319,000 jobs remained flat over the year. Since 2016, however, 1,900 jobs have been created annually.
Who’s above par?
San Diego County had 1.58 million jobs, up 14,800 in a year. That topped its 10-year pace of 14,600 added yearly.
Then there’s Imperial County. Its 60,900 jobs were up 1,200 in a year. Job creation ran 900 yearly, so that’s 33% above average.
California dreaming
Statewide employment also crawls ahead.
There were a record 18.2 million jobs across California in August – up 138,500 workers in a year. Compare that to 164,600 jobs added each year over the past decade.
So, Golden State job creation is running 16% below the state’s 10-year norm.
Geographically speaking, the north had a better employment picture as artificial intelligence investments boost the Bay Area economy.
Counties outside of Southern California account for only 45% of all jobs statewide. But those counties accounted for 66% of California’s employment growth over the last 12 months.
Top the nation
Despite some sluggishness, California’s overall job creation outpaced the nation in August.
American bosses employed a record 159 million, up 603,000 workers in a year. Since 2016, U.S. jobs have averaged 1.44 million per year of growth. So, U.S. job creation is 58% below its 10-year norm.
Ponder California’s slice of the U.S. job market. The state represented 11% of all American employment in August – but created 23% of all new U.S. jobs in the past year.
Or contemplate California’s outperformance by eyeballing one-year rates of change. Southern California jobs are up 0.5%. Statewide employment grew 0.8%. But the nation? It’s up only 0.3%.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
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August’s most popular Southern California real estate stories …
No. 1: Where is OC’s hottest homebuying neighborhood?
No. 2: 338-unit affordable housing complex breaks ground in Tustin
No. 3: Peek inside this Newport Coast estate that sold for $39M
No. 4: Enderle Center sold, Campo on 17th moves ahead in Tustin
No. 5: Rents rise in just 22% of SoCal. See which cities got hikes
No. 6: Home prices dip in 38% of OC. How did your ZIP do?
No. 7: LA-OC’s worst-paying jobs: Can those wages pay the rent?
No. 8: A-OC homes still ‘unaffordable’ even with a 0% mortgage
No. 9: Corona del Mar retail center trades hands, a first in 80 years
No. 10: California housing is frozen, but not underwater
