5 things we learned about Southern California’s job market from May’s employment report
Southern California’s bosses added workers in May at a hiring pace 15% above the region’s pre-pandemic job growth for the month.
My trusty spreadsheet, filled with new state job figures, found 8 million at work in Los Angeles, Orange, Riverside and San Bernardino counties in May – up 19,800 in a month and up 63,100 in 12 months. April saw 26,900 employees added.
Here are five noteworthy trends found in the latest jobs report …
1. Hiring was strong for May. Historically speaking, local bosses averaged adding 17,200 in May in 2015-19, before coronavirus upended the economy. So May 2024 was 2,600 hires above par.
2. Still, hiring is cooler. Ponder a full year of hiring now two-years-plus after the Federal Reserve began chilling an overheated economy with higher interest rates. Looking at job growth on a percentage-point basis, the past 12 month’s 0.8% pace was equal to the previous 12 months’ increase. But in 2015-19, local bosses expanded their staffing at a 2.2% annual hiring rate.
3. LA is the hiring hub. By metro area, Los Angeles County had 4.59 million workers after adding 11,100 in May, growing by 27,500 in a year. May hiring averaged 7,700 for the month in 2015-19. Orange County had 1.7 million workers after adding 6,000 in a month and growing by 18,800 in a year. Hiring averaged 5,700 for the month in 2015-19. The Inland Empire had 1.70 million workers after adding 2,700 in a month and growing by 16,800 in a year. Hiring averaged 3,700 for the month in 2015-19.
4. Job growth did not chill regional joblessness. The four-county unemployment rate was 4.5% in May compared with 4.3% in the previous month, and 4.1% a year earlier. Unemployment decreased by 0.1 percentage points in May in 2015-19. And the count of unemployed rises – 402,700 counted as officially out of work in May, up 17,800 in a month and up 31,200 in a year. The jobless count is 5% above the 424,700 average of pre-pandemic 2015-19.
5. Still, this is low joblessness. The local unemployment rate averaged 4.7% in 2015-19. At the metro level, OC’s 3.2% rate compared to 3.7% a month earlier; 3.6% a year ago; and 3.6% average in 2015-19. In the IE, 4.3% unemployment vs. 4.8% a month earlier; 4.8% a year ago; and 5.2% average in 2015-19. LA’s 5.2% unemployment compared so 4.5% a month earlier; 5.1% a year ago; and 5.2% average in 2015-19.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com