News Summary
In January, Los Angeles County’s unemployment rate dipped to 6%, down from 6.1% in December but higher than last year’s 5.4%. This contrasted with Orange County’s increase to 4.1%. Job losses were notable, with 99,500 jobs shed, especially in the trade and utilities sector. Meanwhile, statewide and national trends showed slight dips in unemployment. The Inland Empire also reported challenges with increased job losses across various sectors. Overall, the job market remains complex and interlinked as the region navigates economic fluctuations.
Los Angeles County: A Look at January’s Changing Job Landscape
As the calendar turned to January, Los Angeles County experienced a slight decline in its unemployment rate, now sitting at 6%. This is a modest drop from the revised 6.1% figure noted in December. However, this new statistic is notably higher than the 5.4% rate seen in January of last year. Job seekers across the region might find this fluctuation both puzzling and concerning as industries continue to grapple with various challenges.
Neighboring Orange County Sees a Rise
Switching gears to our friend in Orange County, the unemployment picture isn’t quite as rosy. Here, the January unemployment rate rose to 4.1%, up from a revised 3.7% in December, and also higher than 3.9% in January 2024. This paints a contrasting scenario within the neighboring regions of Southern California.
California and National Trends
On a broader scale, the statewide unemployment in California also showed a slight dip, landing at 5.4% in January compared to 5.5% the previous month. However, it’s above the 5.1% rate from a year earlier. Meanwhile, across the nation, the unemployment rate decreased slightly to 4%, down from 4.1% in December but still firmly above the 3.7% recorded in January 2024. It appears no region is immune from the rippling effects of economic flux.
Job Losses in Los Angeles
In a disheartening turn of events for Los Angeles County, the area saw a staggering loss of 99,500 jobs from December to January, bringing the total nonfarm employment count to nearly 4.55 million. This drop hasn’t gone unnoticed, particularly in the crucial trade, transportation, and utilities sector, which encountered the most significant job losses, shedding 24,100 jobs in just one month.
Inland Empire’s Unemployment Rate
Further inland, the combined Inland Empire, consisting of Riverside and San Bernardino counties, recorded an unemployment rate of 5.3% in January, an increase from 5% in December. The individual stats show Riverside County also at 5.3%— a slight decrease from last year—and San Bernardino County slightly better at 5.2%. However, the story doesn’t end there. Mecca stands out with the highest unemployment rate in Riverside County, clocking in at a staggering 12.9%.
The Struggles of Various Sectors
It doesn’t seem like the troubles are confined to a specific area either. The Inland Empire faced payroll losses across several sectors, particularly in retail, reflecting a loss of approximately 23,400 jobs in the trade, transportation, and utilities sector alone. Other sectors, including agricultural, construction, and financial services, saw cumulative losses of around 16,000 jobs. Even miscellaneous unclassified industries were not exempt, recording 1,000 job cuts.
Moving Forward
As it stands, these unemployment figures and job losses resulted from an annual statistical revision process called “benchmarking,” coordinated by the Employment Development Department (EDD) alongside the U.S. Department of Labor. This vital undertaking aims to enhance the precision of employment data, and while we wait for the February jobless numbers, it’s evident that the road ahead may still be bumpy.
Overall, while the drop in unemployment might seem like a positive step, the reality of lost jobs and rising rates in surrounding areas highlight how interconnected and complex our economic landscape really is.
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Additional Resources
- LA Business Journal: LA County Unemployment Rate Hit 6% in November
- Orange County Register: Southern California Unemployment Dips to 5.2%
- Hey SoCal: Southern California Unemployment Rates Slightly Increase
- Fox LA: LA County Residents Charged in COVID Benefits Fraud Scheme
- Google Search: California Unemployment Rates
