Southern California job market reaches all-time high in August.

In Southern California, employers have expanded their workforce to unprecedented levels this summer, despite a marked slowdown in job creation compared to historical averages. Recent data released on September 18 indicates that job levels in August reached 10 million across key counties including Los Angeles, Orange, Riverside, San Bernardino, San Diego, Ventura, and Imperial. These figures, adjusted for seasonal employment fluctuations, reflect both the strength and weaknesses of the local economy.

August represented the third consecutive month of reaching record-high employment in the region. However, the annual addition of merely 47,000 jobs significantly lags behind the decade-long average growth rate of approximately 80,400 jobs per year. This discrepancy points to an alarming trend: while the total number of available positions has never been higher, the pace of job creation remains 42% below average, a sentiment that may cause concern among prospective job seekers.

Examining the job market on a more localized level reveals a mixed picture. Within the region’s six distinct job markets, five recorded increases in employment during August, with only one remaining stagnant. Nevertheless, job growth fell short of the 10-year norms in four of these markets. The Inland Empire has experienced the most pronounced decline, with 1.72 million jobs reflecting an annual increase of just 7,300. Historically, this region has averaged 31,500 jobs per year since 2016, marking current job creation at a substantial 77% below this average.

Following closely, Orange County, which saw job levels at 1.69 million with a year-over-year increase of 6,300 jobs, still falls short of its historical average growth of 10,400 jobs per year—39% below benchmarks. In comparison, Los Angeles County, with 4.62 million jobs, added 17,400 workers in a year, yet lags 17% below its typical annual growth of 21,000 jobs.

Conversely, a few counties exceeded their historical growth rates. San Diego County, for instance, reported a job tally of 1.58 million, which represents an annual increase of 14,800—slightly ahead of its 10-year average growth. Imperial County also experienced a minor increase, registering 60,900 jobs, which equates to an annual rise of 1,200 jobs, notably 33% above its historical average.

On a statewide level, California reported a record 18.2 million jobs in August, reflecting an increase of 138,500 workers over the previous year, although the growth remains 16% behind the state’s 10-year average of 164,600 positions annually. The northern regions of the state have benefitted from investments in artificial intelligence, contributing to a more favorable employment landscape.

Despite slower growth in Southern California, California’s job creation rates have outperformed the national average. While the nation added 603,000 jobs over the year, this figure represents a decrease of 58% compared to historical growth rates. Southern California’s job market saw an increase of 0.5%, while statewide employment grew by 0.8%, surpassing a national increase of just 0.3%.

In summary, while Southern California’s job market boasts record-high employment numbers, the undercurrent of diminished job creation signals a challenging landscape for job seekers. Regional disparities further highlight the complex dynamics of the state’s labor market.