Southern California unemployment hits 5.3%, highest in 2 years

Southern California joblessness started 2024 at a two-year high.

My trusty spreadsheet, filled with state job figures, found the four-county unemployment rate was 5.3% in January compared with 4.6% in the previous month, and 4.5% a year earlier. Joblessness was last higher in January 2022 and averaged 4.7% in pre-pandemic 2015-19.

The start of the year often sees unemployment rise as holiday hires turn into New Year’s cuts. The four-county unemployment rate, for example, averaged a half-percentage-point jump in 2015-19.

In January, 482,700 Southern Californians were counted as officially out of work, up 67,300 in a month and up 81,200 in a year. The January jobless count is 14% above the 424,700 average of pre-pandemic 2015-19.

Bosses in Los Angeles, Orange, Riverside and San Bernardino counties had 7.91 million at work in January – down 127,200 in a month. Note that an average January had a 140,600 job decline in 2015-19.

Local employment is up 76,400 in 12 months. That equals job growth of 1%, a significant slowing vs. the previous 12 months’ 2.2% increase and an average 2.2% average hiring pace in 2015-19.

Industry swings

Note job changes in key Southern California business sectors, ranked by one-month change – large cuts in industries tied to holiday shopping and the seasonal tourism rush …

Financial: 358,900 workers – down 2,300 in a month and down 2,700 in a year.

Education/health: 1.51 million workers – down 4,000 in a month but up 91,500 in a year.

Manufacturing: 569,700 workers – down 4,200 in a month and down 6,300 in a year.

Government: 1.02 million workers – down 5,500 in a month but up 26,900 in a year.

Information: 213,900 workers – down 5,600 in a month and down 41,800 in a year.

Construction: 367,900 workers – down 9,900 in a month but up 14,000 in a year.

Professional-business services: 1.12 million workers – down 20,600 in a month and down 19,600 in a year.

Transport-Warehouse-Utility: 688,500 workers – down 21,600 in a month and down 8,000 in a year.

Leisure/hospitality: 929,400 workers – down 26,500 in a month but up 12,200 in a year.

Retailing: 737,300 workers – down 28,500 in a month but up 1,200 in a year.

Regional differences

Here’s how the job market performed in the region’s key metropolitan areas …

Los Angeles County: 4.54 million workers, after dropping 70,200 in a month and declining by 24,100 in a year. Cuts averaged 87,800 for January in 2015-19. Unemployment? 5.9% vs. 5% a month earlier; 5.1% a year ago; and 5.2% average in 2015-19.

Orange County: 1.68 million workers, after dropping 24,700 in a month and growing by 28,600 in a year. Cuts averaged 28,280 for January in 2015-19. Unemployment? 4.2% vs. 3.8% a month earlier; 3.4% a year ago; and 3.6% average in 2015-19.

Inland Empire: 1.69 million workers, after dropping 32,300 in a month and growing by 23,700 in a year. Cuts averaged 24,540 for the month in 2015-19. Unemployment? 5.5% vs. 5% a month earlier; 4.4% 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