In the Inland Empire, located in the eastern edge of Los Angeles, the warehousing industry has experienced a significant downturn after years of relentless growth. The COVID-19 pandemic initially had a positive impact on the industry, with the Inland Empire recovering all lost jobs by the summer of 2021. However, in the last year, warehousing and storage jobs in the region have shrunk for the first time in over two decades. Truck transportation and wholesale trade employment have also declined. Industrial building vacancies are up and rents are down. Logistics businesses across the country are cutting back due to declines in freight volume. United Parcel Service (UPS) announced plans to shed 12,000 jobs worldwide, with California likely to be affected. The Inland Empire's overall job growth in 2023 averaged just 1.2%, half the rate of Southern California and the state as a whole. The industry was already facing strains from environmental regulations, disputes over independent trucking, and rising operating costs before the pandemic. The Inland Empire's troubles come as the U.S. economy faces an expected slowdown and the tech sector continues to shed jobs. California's tourism industry and the housing market have also been affected. The latest unemployment rate for the state and the Inland Empire was 5.1% in December 2023, higher than the national figure of 3.7%. The long-term growth of the logistics industry in the Inland Empire may require higher skills and automation, potentially employing fewer workers. [4940c681]
Southern California added 21,700 real estate workers in the past year, a hiring pace faster than the overall job market. Property-linked employment in Los Angeles, Orange, Riverside, and San Bernardino counties was 803,700 in November 2023. Real estate work grew locally by 21,700 positions over 12 months, or a 2.8% gain while all other industries added 115,300 – or a 1.6% gain. The construction sector added 300 workers in the month and was up 18,800 over 12 months, or a 5% gain. Property-related jobs were 9.8% of local employment in November 2023, but accounted for 15.8% of Southern California hires for the year. Here’s how key real estate-related employment niches in Southern California fared: Construction trade specialists: 266,400 employed by contractors, Construction on buildings, civil projects: 125,800 workers in various trades, Credit work: 102,600 folks in various slices of credit work, Real estate services: 141,800 people handling transactions and leasing, Commercial property operations: 114,500 jobs in commercial property operations, Sellers of equipment and materials: 52,600 sellers of equipment and materials. Los Angeles County had a post-Great Recession high of 380,400 real estate jobs, Orange County had 231,600 real estate jobs, and the Inland Empire had 191,700 real estate jobs. Property jobs equaled 8.1% of all LA workers, 13.3% of all OC workers, and 11.2% of all IE workers in November 2023. [1cf06d8b]
According to a report by Fox Business, California experienced the largest decline in job growth in the U.S. post-pandemic, with job creation in 2019-2023 being 54% lower than in the 2015-2019 period. The state gained 640,300 jobs in the 2019-2023 period, recovering all pandemic-related job losses, but this is 743,000 jobs less than the pre-pandemic period. Employment growth shrank in 25 of the 29 California job markets analyzed. Los Angeles County saw one of the largest hiring slowdowns. The San Francisco Bay Area had the largest declines in relative job creation. Texas was the only state to accelerate job growth in the 2019-2023 period. [226e63e3]
In California, the unemployment rate rose by 0.1 percentage point to 4.8% in October 2023. Since April 2020, California has gained 3,236,900 jobs. Private Education & Health Services led the way in job gains, while Financial Activities showed a loss. The total nonfarm jobs in California's 11 major industries increased by 40,200 in October. The number of employed Californians decreased by 28,800, and the number of unemployed Californians increased by 17,700 compared to September. In related data, there were 356,668 people certifying for Unemployment Insurance benefits in October 2023. [0b0c9a5c]
The Department of Commerce presented the 2022 County and Metropolitan Statistical Areas (MSAs) numbers for Gross Domestic Product (GDP) on Dec. 7. The Department of Labor published the November unemployment rate numbers for the nation the following day. The U.S. unemployment rate dropped from 3.9% to 3.7% in November, indicating a strong labor market. However, the data for the Inland Empire tells a different story, with a higher unemployment rate of 5.2% in October. The Inland Empire economy heavily relies on the Logistics industry, which has been affected by a reduction in national consumer expenditures. The Inland Empire saw a smaller decline in overall output during the recession year 2020 compared to the state and the nation, but 2022 had a mediocre year with GDP increasing by only 1.1%. Expect below-par growth for 2023 and 2024 with activity levels lagging behind the state and the nation. The Inland Empire Economic Partnership aims to create a regional voice for business and quality of life in Riverside and San Bernardino counties. [42214afd]
The national employment numbers for January 2024 showed a higher than expected increase in employment, although the unemployment rate increased slightly. The U.S. economy is on a path for a soft landing. In the Inland Empire, the Logistics industry lost more jobs than previously assumed, while Education and Health Services gained more jobs. The unemployment rate in the Inland Empire increased from 5.0% to 5.5%, but this is attributed to seasonal patterns and not a sign of a recession. Seasonally adjusted data shows a decrease in the unemployment rate from 5.7% to 5.6%. The region is on a positive path of economic recovery from the COVID-19 recession. [e7ab67a7]