Business
U.S. hiring cools in January; California's outlook is dimmed by looming cuts in government and aid
WASHINGTON — U.S. job growth slowed at the start of the year, the government said Friday, as business services, manufacturing and other major industries held back on adding jobs amid increased uncertainty about the economy.
The Los Angeles-area wildfires, which began Jan. 7, didn’t have a material effect on the nation’s employment numbers, the Bureau of Labor Statistics noted. But analysts said it remains to be seen what the fires’ effect on jobs will be for California and beyond. Thousands of Californians affected by the fires already have filed for unemployment benefits. The state’s jobs and unemployment numbers for January won’t be reported until next month.
Although the national jobs report Friday was modestly below expectations, a separate national survey on consumer confidence was more concerning: It showed many people foresee increasingly higher prices in the months ahead. That, coupled with strong wage gains last month, sent stocks falling.
Investors and economists worry about tariffs and other Trump administration policies reigniting inflation — which not only would put the kibosh on near-term interest rate cuts but also could force the Federal Reserve to reverse course and raise rates.
“Uncertainty makes it more likely that something could tip us into recession,” said Erica Groshen, an economist and former commissioner of the Bureau of Labor Statistics, which produces the monthly jobs report. “A lot of it is going to depend on confidence,” she added. “Are we going to have a price shock?”
The jobs report Friday showed that the nation’s unemployment rate ticked back down to just 4%, from 4.1% in December. At the same time, hourly wages rose a strong 0.5% in January from the prior month, for an annual growth rate of 4.1%.
Thus far, experts believe that labor costs haven’t spurred inflation, but with the unemployment rate already near historical lows and U.S. birth rates down, plans for mass deportations of unauthorized foreign workers, combined with higher tariffs, probably would add to overall inflationary pressures.
The national jobs report included significant upward revisions to the adult and workforce populations, taking into account the large growth in foreign migration in recent years, although Southwest border crossings have slowed sharply since last summer.
The new population estimates “show clearly that the surge in net immigration was a key factor in boosting U.S. labor supply in the last couple of years, in turn alleviating the labor shortages that were so prevalent in 2022,” said Brian Coulton, chief economist at Fitch Ratings.
The University of Michigan’s consumer sentiment report said people’s expectations for inflation over the next 12 months jumped from 3.3% earlier this year to 4.3% in February, the highest since November 2023.
The Fed’s effort to curb inflation further to its target 2% level has stalled in recent months. Consumer price inflation in the fourth quarter was between 2.6% and 2.9%.
Higher inflation and weaker consumer confidence would weigh on spending and job creation. Last month, nearly all of the 143,000 net gain in payrolls came from healthcare, retail and government. That’s still healthy growth, but lower than the 170,000 that economists were expecting.
And both government and healthcare employers could soon feel the effects of the Trump administration’s moves to pare federal payrolls and public aid that is crucial for health services and social assistance.
That presents challenges especially for states like California, said Michael Bernick, an employment lawyer for Duane Morris in San Francisco. “California has lived off of heightened government spending in the post-pandemic period, but that is coming to an end,” said Bernick, former director of the state’s Employment Development Department.
“Also, California’s main sectors of job growth — healthcare and government — have been targeted for reform and employment reductions by the new administration.”
On the positive side, rebuilding after the wildfires should give a lift to the L.A.-area economy, although it may take some time for employment to bounce up after the disruption of normal economic activity caused by the disaster, which destroyed more than 16,000 structures, most of them houses.
California’s EDD reported that as of Tuesday, workers seeking relief had filed about 5,300 unemployment benefit claims linked to the fires. That’s about 10% of the total new claims filed statewide in the most recent week. Data on federal Disaster Unemployment Assistance for self-employed people weren’t yet available.
For months now, California has been lagging behind the nation in job growth, with hiring weakness in major sectors such as tech and entertainment. The state’s unemployment rate for December was 5.5%, the second-highest in the country, behind Nevada, which was 5.7%. Los Angeles County’s jobless rate was 6% at the end of last year.
The EDD said the statewide jobs report for January won’t be released until March 17, later than usual for most months, because of a yearly review of the statistics using a wider array of information.
Friday’s national jobs report also showed that the U.S. added about 600,000 fewer jobs last year than previously reported. The adjusted figures show that the U.S. economy created, on average, 166,000 additional jobs a month last year, down from 216,000 in 2023.
The rates of new job openings and people quitting their jobs, both of which jumped in 2021 and 2022, have since fallen below pre-pandemic levels. And the labor market outlook has become more cloudy as the new administration has promised to implement a range of policies, some positive and some negative for growth. These include increasing tariffs, cutting taxes and government regulations and implementing mass deportations of immigrants who are in the country illegally.
“The job market still looks solid — and the largest threats to its steadiness are Trump’s plans to deport immigrants and raise tariffs,” said Harry Holzer, a labor economist and public policy professor at Georgetown University.
Business
In a first for the country, voters in Monterey Park ban data centers
Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.
As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.
Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.
Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.
That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.
“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”
The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.
The Data Center Coalition, an industry trade group, expressed disappointment in the vote.
“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.
“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”
SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.
The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.
City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.
There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.
“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.
Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.
California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.
That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.
In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.
Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
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