California’s unemployment rate held steady last month and the overall jobs picture looked considerably brighter than earlier this year, according to new government data released Friday.

Still, at 5.2%, the state’s jobless rate is tied with Nevada for the highest in the country; the national unemployment figure averaged 4.1% last month.

But with 22,500 jobs added over the month, California is on pace with the rest of the nation.

And the number of unemployed people in the state dropped for the third straight month in June, falling below 1 million for the first time this year, according to seasonally adjusted data from the state’s Employment Development Department.

Significantly, some key economic engines, especially in Southern California, saw notable gains or improvement.

Transportation and warehousing employers statewide added almost 7,000 jobs last month. In doing so, that sector posted the first year-over-year increase in payroll growth since January 2023.

“It’s a good sign for the Inland Empire,” said Manfred Keil, an economics professor at Claremont McKenna College in Claremont, referring to the large number of warehouses and distribution centers that blanket parts of the counties east of Los Angeles.

He noted that the ports of L.A. and Long Beach have been busier this year, in part because of the diversion of cargo to the West Coast from the drought-stricken Panama Canal. That’s provided a lift to the region’s logistics industry, which Keil said has been coming back after a long period of pandemic-related ups and downs. “The adjustment is over,” he said.

Southern California also saw a glimmer of hope in the latest jobs data for the film industry.

Employment in the motion picture and sound recording industries rose by 3,000 jobs last month, to 121,200 statewide. While that number isn’t adjusted for seasonal variations, the data in recent months suggest employment may be improving after sharp declines over much of the last two years amid the industry’s labor strikes, streaming wars and other challenges.

Overall, California’s job growth in June was led by the combined trade and transportation sector, government and information, which includes jobs in entertainment, according to the EDD.

Healthcare and social assistance, which have long been the strongest job creators in the state and nation, took a bit of a pause in June.

Payrolls at hotels and restaurants, as well as the entire grouping of leisure and hospitality businesses, were flat.

And there were outright losses in the state’s construction and manufacturing industries, which have been cutting jobs for most of the year.

In addition, tech sector employment remains lackluster.

Statewide, payrolls at computer systems and design firms, for example, were down in June on a year-over-over basis for the 16th straight month. And the recent announcement by Elon Musk that he plans to relocate SpaceX and X to Texas won’t help.

If he follows through with it, Musk’s move would complete “the hollowing out of the once vibrant tech hub in the mid-Market area of San Francisco,” said Michael Bernick, an employment attorney at Duane Morris in San Francisco. “X’s exit completes the exodus started by Uber in 2019, followed by Block (formerly Square) in 2022 and Reddit in 2023,” he said.

For all industries, the number of payroll jobs in California rose 224,000 in June, or 1.3%, from a year ago. That compares with a growth rate of 1.7% for the nation as a whole, according to the U.S. Bureau of Labor Statistics.

When Elon Musk decided to start a rocket company two decades ago, he headed down Interstate 5 and the 405 and didn’t stop until he reached the South Bay, the center of the region’s aerospace industry, hard hit by a drop in defense spending after the Cold War.

There, the Silicon Valley entrepreneur, flush with cash from the sale of PayPal, founded Space Exploration Technologies in 2002 and defied skeptics, building his startup into a $210-billion giant and fueling a revitalization of the shrunken industry.

This week, the Hawthorne company’s future in the region was thrown into doubt when Musk posted on X that he planned to move SpaceX’s headquarters to the outskirts of Brownsville, Texas, where it is developing its massive Starship rocket for planned trips to the moon and, someday, Mars.

It’s unclear what the fallout will be locally.

SpaceX hasn’t commented on how many jobs will be affected by the relocation, and industry observers say it’s likely the company will maintain significant manufacturing operations in Los Angeles County, where it employed about 6,000 people in 2023, according to an annual survey by the Los Angeles Business Journal.

But the relocation is undoubtedly a loss to the region’s revived space industry.

A leader in the space economy

“SpaceX has been one of the pillars of the Southern California new space economy,” said Kevin Klowden, the Milken Institute’s executive director of MI Finance. The move “is significant symbolically in that it shows Southern California isn’t indispensable in an industry where it clearly is a leader.”

The aerospace industry was pioneered in L.A. County, with the first rockets set off in the Arroyo Seco near Caltech in the 1930s — the humble origins of what was to become the Jet Propulsion Laboratory, a leader first in rocket and satellite development and later in interplanetary spacecraft.

Douglas Aircraft, Lockheed, Northrop and other companies built hundreds of thousands of planes during World War II and maintained defense work here. In Downey, North American Aviation built the command module of the Apollo 11 spacecraft that landed astronauts on the moon. Rockwell International built the space shuttles in Downey and Palmdale.

The massive defense spending cuts after the collapse of the Soviet Union devastated the industry, dropping employment in the county from about 130,000 in 1990 to less than half that a decade later — but with its heritage, talent pool and world-class universities, the region was a logical place for SpaceX to set up shop.

A new, smaller, Southern California aerospace economy has since developed, building on the remaining operations of legacy companies and technological advancements — even as other centers have emerged, such as Kent, Wash., where Jeff Bezos’ Blue Origin space company is located.

Virgin Galactic, the space tourism company founded by British billionaire Richard Branson in 2004, is based in Tustin and has its design and manufacturing operations in Mojave, where it also performs test flights. Its commercial operations are in New Mexico.

Rocket Lab, a maker of lightweight rockets that launch small satellites, moved its headquarters to Long Beach just three years ago.

And former SpaceX employees have founded dozens of startups. Crunchbase, which tracks venture capital and startups, tallies more than 50. Local ones include Relativity Space, a Long Beach maker of reusable rockets; Varda Space Industries, an El Segundo company developing drugs in low-Earth orbit; and L.A. telemetry startup Sift, which raised $7.5 million in venture funding last year.

“SpaceX isn’t unique, but it’s the star,” said Klowden, noting the “ecosystem” that has sprung up around it.”

While Musk’s declaration Tuesday was prompted by a public policy dispute — Gov. Gavin Newsom’s decision to sign a bill prohibiting school districts from mandating that teachers notify parents about a student’s change in gender identity — Musk has long complained about the state’s regulatory environment and has a history of tangling with government officials.

He moved Tesla’s headquarters from Palo Alto to Austin, Texas, in 2021 after Alameda County ordered the company in 2020 to halt production amid the COVID pandemic. Separately, the billionaire noted crime concerns in also tweeting Tuesday that he plans to move X, the social media platform formerly known as Twitter, from San Francisco to Austin.

Klowden said he believed Musk has been considering the idea of moving SpaceX, though it’s still unclear exactly whether Musk plans to transfer a handful of executives, additional employees or all of the operations, which is not seen as likely. Neither Musk nor SpaceX has offered clarification. The company did not respond to requests for comment.

City officials were also grappling with the announcement.

“We understand that business decisions are driven by a variety of factors, and we remain committed to fostering a thriving business environment in Hawthorne,” Alex Vargas, the city’s mayor, said in a statement. He added: “[W]e want to reassure our workforce and community that the city of Hawthorne is taking proactive steps to mitigate the impact of SpaceX’s potential relocation.”

Much of the skepticism regarding Musk’s SpaceX tweet revolves around how the Tesla move was carried out. The electric vehicle maker produces its Model Y SUV and new Cybertruck in Austin but still operates a factory in Fremont, where it makes multiple models. Last year, Tesla said it was opening a new global engineering headquarters in Palo Alto previously occupied by the headquarters of Hewlett-Packard.

A flight to Texas?

But some familiar with the company think the headquarters relocation announcement could presage a larger presence in Texas.

Tim Buzza, a former SpaceX vice president, said that while the company builds its workhorse Falcon 9 rocket and Dragon capsules that service the International Space Station in Hawthorne, the company’s future is the massive Starship rocket being developed at the Brownsville facility called Starbase on the Gulf of Mexico.

“The center for the next level of execution for SpaceX is Starbase. The direction and the momentum of the company is already moving to Texas,” said Buzza, who was one of the first five employees at SpaceX, worked there for 12 years and remains in contact with many at the company.

SpaceX is seeking approval to launch 90 rockets from Vandenberg Space Force Base by 2026, a sharp increase from its previous plans for the Santa Barbara County military base. Buzza said the launches are important for the Starlink satellite broadband network SpaceX is building, since they put the satellites into a polar orbit, complementing Florida launches that put them in an equatorial orbit.

However, the Starship rocket — taller and more powerful than the Saturn 5 that launched Apollo astronauts to the moon — could launch many more satellites than the Falcon 9. SpaceX has opened a new Starlink factory outside Austin, and last month Starship completed its fourth test flight from Starbase, dubbed its “Gateway to Mars.”

The company has been building its operations at Starbase and this month asked the Federal Aviation Administration for permission for up to 25 annual launches of Starship and its Super Heavy rocket, a more powerful derivative of its Falcon 9. The company operates an engine testing facility in McGregor, Texas.

Klowden questioned the company’s ability to move or attract large numbers of workers to the Brownsville area, at least in the immediate future, given the lack of housing and other infrastructure. But Buzza said SpaceX overcame many of the same issues in McGregor. He doesn’t think Musk would move Falcon 9 production or the Dragon capsule program from Hawthorne, because both may be phased out over time.

Still, even the loss of SpaceX’s executive operations to Texas would be a blow to Los Angeles and the Golden State, which have suffered a humiliating series of corporate defections over the last few decades. L.A.-area companies that have moved headquarters elsewhere include Lockheed, Northrop Grumman and more recently Aecom, a global engineering firm. Software giant Oracle left Redwood City in Silicon Valley for Austin in 2020 (and has since announced a move to Nashville).

“Whenever any company announces that they might or they will leave the region, it is not good for us. We definitely need to do a much better job in terms of business retention,” said Stephen Cheung, chief executive of the Los Angeles County Economic Development Corp.

However, he said the region’s aerospace economy is still robust and has shown an ability to evolve. After the bankruptcy last year of Branson’s separate Virgin Orbit rocket company, Rocket Lab acquired the defunct company’s former Long Beach headquarters, he noted.

That move mirrors SpaceX’s evolution. Its first location in L.A. County was in El Segundo, but as it grew it moved in 2007 into an old Northrop site in Hawthorne that had been converted into a factory for the production of Boeing 747 fuselages.

Aerospace Corp., an El Segundo federally funded nonprofit that provides scientific and technical support to the aerospace industry, announced in March that it was moving its executive offices to Virginia but simultaneously announced it was investing $100 million in its local campus.

The region is still home too for major defense work.

Northrop Grumman is building the new B-21 digital bomber in Palmdale, which is slated to replace the B-2 stealth bomber it built decades ago in Pico Rivera. The high desert city also is home to Lockheed Martin’s famed “Skunk Works,” a secretive, cutting-edge military research and development facility.

Klowden said that for some SpaceX workers a move to South Texas could be a no-go, and he expects other aerospace companies will attempt poach its workers. Indeed, Orange County asteroid mining company Astroforge Inc. said it was hiring in a reply to Musk’s SpaceX tweet.

Earlier this week, workers streaming in and out of SpaceX’s Hawthorne complex declined to speak to a Times reporter. However, a salesman for SpaceX vendor GF Machining Solutions who asked his name not be used, said he hopes Musk was not serious about relocating the headquarters to Texas.

“Well, I wouldn’t want that to happen, because I’ve lived in California all my life and I would lose that account if SpaceX moved,” the Corona resident said. “I’m not moving to Texas.”

Times staff writer Ashley Ahn and Bloomberg News contributed to this report.

The city of Los Angeles has settled a lawsuit brought on behalf of street vendors by agreeing to repeal bans on vending near schools and farmers markets and canceling citations issued to vendors for selling in restricted areas, attorneys representing vendors announced Friday.

The lawsuit, which was filed in late 2022, alleged city ordinances that established no-vending zones and banned street vendors from working within 500 feet of schools, farmers markets, swap meets and temporary events violated state laws.

“The bans are gone and the vendors have been vindicated,” said Merlín Alvarado, a street vendor and plaintiff in the lawsuit who has been selling fruit and hot dogs on Hollywood Boulevard for 17 years. Alvarado, other vendors and community advocates gathered Friday morning on Hollywood Boulevard with pro bono attorneys who filed the lawsuit to celebrate the settlement.

“Street vending is one of our city’s great traditions and resources and we look forward to being fully recognized for our role as community contributors,” she said.

In February, the Los Angeles City Council voted to eliminate the no-vending zones, which included high-congestion areas such as the Hollywood Bowl, Crypto.com Arena and Universal Studios.

The settlement agreement builds on that decision by opening more spaces for vendors and guaranteeing a refund for vendors who were ticketed in the no-vending zones, said Doug Smith with Inclusive Action for the City, a plaintiff in the lawsuit.

“Los Angeles loves street vendors, but historically, our laws have not shown that love,” Smith said. “That’s why this is a really important victory.”

Although the settlement has been signed by representatives from both sides and filed in court, the City Council and mayor must still formally approve it, according to Public Counsel, one of the firms representing the plaintiffs. In a news release, the plaintiffs said they expect those approvals when the City Council returns from a recess in August.

Requests for comment from Mayor Karen Bass were not returned. A representative for City Councilmember Hugo Soto Martinez, who has been an outspoken supporter of vendors, said the council member was unavailable to comment on the settlement.

Under the terms of the settlement, vendors who paid no-vending zone citations within the last five years will be refunded and any unpaid citations will be canceled.

Many street vendors took the risk of receiving a citation in order to sell in high-traffic areas such as Hollywood Boulevard, said Ruth Monroy, a street vendor of seven years and a plaintiff in the lawsuit.

The vendors can now set up in customer-heavy areas without having to worry about violating city law or being fined, she said.

The settlement also sends a message to other cities in the state that may have vending restrictions, Smith said.

“The days of redlining vendors are over and old tools of exclusion are no longer legal,” he said. “Now other cities in California are on notice that arbitrary vending bans are illegal and they can and will be challenged.”

Vending “within the immediate vicinity” of swap meets and farmers markets is still prohibited according to state law, the settlement said. Smith said there is more to be done to create specific policies that will allow street vendors to work while complying with city regulations.

“We’re excited to roll up our sleeves and showcase that policies are better when they’re created with the expertise of the communities that are most impacted,” he said. “The lawsuit doesn’t end the work, but it sets us up.”