Southern California, August 22, 2025
News Summary
Job growth in Southern California has significantly slowed as uncertainty overshadows the economic landscape. Out of 15 major job sectors, nine have cut jobs over the past year, with healthcare and social assistance sectors showing notable growth. As of July, the region reported 7.95 million employed workers, reflecting a modest increase but remaining 47% below the average job creation rate since 2010. The cautious hiring climate is influenced by economic pressures, complicating efforts for local businesses.
Southern California
Job growth in Southern California has dramatically slowed as uncertainty looms over the economic landscape, marking a notable change across major employment sectors in the region. Recent data reveals that out of 15 major job sectors, nine have cut jobs in the past year, while only six expanded their workforce beyond historical averages.
As of July, Southern California reported a total of 7.95 million employed workers across Los Angeles, Orange, Riverside, and San Bernardino counties. This figure reflects a modest increase of 55,000 jobs compared to the previous year. However, the current pace of job creation stands at 47% below the yearly average of 104,300 jobs that has been consistent since 2010.
Contracting Sectors and Job Cuts
Data indicates a concerning trend in contracting sectors, which collectively lost 65,600 jobs in the past year. The specific industries facing significant reductions include:
- Manufacturing: Down 18,100 jobs, totaling 544,500 workers. This decline surpasses the historical average annual drop of 5,100.
- Construction: A decrease of 16,400 jobs, now at 362,600, falling below the historical growth rate of 8,600.
- Professional and Business Services: Lost 9,500 jobs, with current employment at 1.12 million, lagging behind past growth of 15,300.
- Financial Services: A decline of 8,700 jobs, leaving 48,100 workers, trailing behind a typical decline of 500.
- Fast-Food Restaurants: Saw a drop of 6,800 jobs, now at 46,900, below the usual increase of 8,300.
- Logistics and Utilities: Dropped by 2,400 jobs to a total of 794,300, falling short of the historical growth of 14,700.
- Personal Services: A decrease of 1,700 jobs brings the current total to 265,700, below historical growth of 3,100.
- Retailing: Experienced a reduction of 1,400 jobs, leaving 718,600 workers, insufficient compared to the historical increase of 2,800.
- Full-Service Eateries: Down by 600 jobs, now totaling 33,100 workers, short of the typical growth of 4,700.
Growing Sectors
Despite the setbacks, several sectors have shown robust growth, adding a total of 120,700 jobs over the past year. Healthcare led the way, gaining 39,500 jobs for an employment total of 871,100, far exceeding historical growth of 19,700 jobs. Other sectors experiencing growth include:
- Social Assistance: Increased by 36,500 jobs to reach 542,900, surpassing the past growth rate of 17,800.
- Government: Added 18,400 jobs, now totaling 996,300, exceeding previous average growth of 4,900.
- Private Education: Up 15,400 jobs for a total of 200,900, surpassing historical growth of 4,700.
- Hotels and Recreation: Increased by 6,000 jobs to 284,500, exceeding historical growth of 5,700.
- Information Technology: Gained 4,900 jobs, raising total employment to 223,100, significantly above a past decline of 400.
Economic Outlook
The report sheds light on Southern California’s economic cooling, with job growth struggling to keep pace with past averages. The hiring climate remains cautious, influenced by economic pressures and a sense of uncertainty due to new administrative policies. This lack of confidence among consumers and corporations continues to complicate efforts to create new jobs, posing challenges for local businesses.
Conclusion
Despite the current downturn in numerous sectors, the growth in healthcare and related industries indicates potential resilience within the Southern Californian job market. Ongoing economic uncertainty will likely dictate the trajectory of the region’s job prospects in the upcoming year.
FAQ
What is the current job growth rate in Southern California?
The current job growth rate is 47% below the historical average, with only 55,000 new jobs added over the past year.
Which sectors have lost jobs in the past year?
Manufacturing, construction, professional and business services, financial services, fast-food restaurants, logistics and utilities, personal services, retailing, and full-service eateries have all experienced job cuts.
Which sectors are experiencing growth?
Healthcare, social assistance, government, private education, hotels and recreation, and information technology are among the sectors that have seen job growth.
What is contributing to the uncertainty in job creation?
Economic uncertainty due to new administration policies is leading to decreased consumer and corporate confidence, which complicates job creation efforts.
Key Features Overview
| Feature | Details |
|---|---|
| Total Employment | 7.95 million workers |
| Job Growth Rate | 55,000 jobs year-over-year |
| Job Cuts | 65,600 jobs |
| Industries with Growth | Healthcare, Social Assistance, Government, Private Education, Hotels & Recreation, IT |
Deeper Dive: News & Info About This Topic
- OC Register: Southern California Job Cuts
- Wikipedia: Southern California
- ABC7: Job Openings
- Google Search: California Job Growth
- OC Register: Job Creation Trends
- Encyclopedia Britannica: California Economy
- LA Times: FEMA Hiring
- Google News: California Manufacturing Jobs
- CalChamber: Southern California Wildfires
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the LA Auto Show, Hollywood Film Awards, and the Los Angeles Marathon. Our coverage extends to key organizations like the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology that power the local economy such as Warner Bros. and SpaceX. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HEREHuntingtonBeach.com, and HERESantaAna.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
