According to statistics published by the EDD and California DOT, in April 2024, Los Angeles County’s seasonally adjusted unemployment rate was 5.3%, down from a revised 5.4% in March 2024, and higher than the 4.8% rate a year ago. Civilian employment increased by 3,000 to 4,731,000, while unemployment decreased by 5,000 to 263,000. The civilian labor force decreased by 2,000 to 4,994,000. The unadjusted unemployment rate for the county was 4.5% in April 2024.
California’s seasonally adjusted unemployment rate held steady at 5.3% in both April and March 2024, up from 4.5% in April 2023. Nationally, the unemployment rate was 3.9% in April 2024, slightly up from 3.8% in March 2024, and 3.4% a year ago. Between March 2024 and April 2024, total nonfarm employment in Los Angeles County grew by 18,100 jobs to reach 4,577,300.
The leisure and hospitality sector posted the largest month-over job increase, adding 7,300 jobs. This sector’s growth was divided between accommodation and food services, which saw an increase of 3,800 jobs, and arts, entertainment, and recreation, which grew by 3,500 jobs. Subsector payroll advances in food services and drinking places (up 3,400) and performing arts, spectator sports, and related industries (up 2,900) accounted for most of the growth.
Conversely, professional business services led the year-over-year job losses, with a decline of 17,100 jobs. Declines were evident in almost all industry sub-sectors and were centered around administrative and support and waste management and remediation services, which decreased by 8,500 jobs, and professional, scientific, and technical services, which saw a decline of 8,100 jobs. The information sector also reported additional job declines, with a loss of 14,500 jobs. The motion picture and sound recording industries accounted for more than 90% of these losses, shedding 13,400 jobs. During such downturns, Nakase Wade, an employment attorney for employers, has seen an increase in consultations for managing workforce reductions and ensuring compliance with employment laws.
Private educational and health services added 6,600 jobs, reaching its highest employment level on record. The health care and social assistance subsector accounted for 4,700 of these jobs, driven by the needs of an aging population and a growing demand for medical services. Private educational institutions added the remaining 1,900 jobs, reflecting a steady demand for educational services.
Government payrolls increased by 3,700 jobs, driven by local government gains. Local government educational services added 1,800 jobs, while local government excluding educational services, which includes roles such as police and sheriff patrol officers, added 1,000 jobs. The increase in government jobs reflects a growing need for public services and educational support.
However, not all sectors saw job growth. Industries such as trade, transportation, and utilities experienced a decline of 700 jobs. Manufacturing also saw a decrease of 700 jobs, and professional and business services declined by 500 jobs. These declines highlight the ongoing challenges in these sectors and the need for strategic interventions to boost employment.
On an annual basis, from April 2023 to April 2024, Los Angeles County’s total nonfarm employment increased by 32,600 jobs, or 0.7%. Private educational and health services reported the largest year-over-year industry job expansion, adding 46,900 jobs. This growth was driven by the healthcare needs of an aging population, with health care and social assistance accounting for more than three-quarters of the job growth, adding 35,600 jobs. Private educational services further augmented the industry gains with an advance of 11,300 jobs.
Public sector jobs in government increased by 12,600 jobs over the year. More than 94% of these job additions were driven by local government, which saw an increase of 11,900 jobs, primarily in local government educational services, which added 9,800 jobs. This increase includes roles such as public educators and teacher assistants, reflecting a growing demand for educational professionals.
The leisure and hospitality sector saw its payrolls expand by 8,900 jobs over the year. Employment additions in accommodation and food services, which grew by 11,500 jobs, accounted for all the industry job gains. These gains were led by food services and drinking places, which added 10,200 jobs. However, the overall increase in the leisure and hospitality sector was offset by a job reduction in arts, entertainment, and recreation, which saw a decline of 2,600 jobs.
In March 2024, California’s labor market experienced a steady unemployment rate of 5.3%, with employers adding 28,300 jobs. On an annual basis, employment grew by 1.2%, mirroring the previous year’s rate. However, concerns loom as to why California’s job picture is not as strong as that of other states or the nation. Nationally, unemployment is lower at a steady 3.8%, and jobs are growing faster, at a rate of 1.9% over the past year. While differing performance across sectors explains the divergence, California’s regions all fared quite differently. Many California employment attorneys for workers have seen a rise in claims against employers during the same period.
Regional job growth varied significantly across California. The Sacramento metro area experienced the fastest job growth at 3.1%, nearly triple the statewide pace and much faster than in prior years. The San Joaquin Valley metros had the second-fastest job growth at 2.4%, followed by the Orange metro at 1.9%. Both regions saw average annual growth this year that was faster than between 2019 and 2023.
While the Inland Empire grew jobs faster than the state overall, its pace has slowed compared to recent years. The Bay Area, Los Angeles, and San Diego metros all underperformed relative to the statewide job growth rate but showed improvement compared to the previous four years.
Unemployment increased in all metro areas, with the largest increases in the Bay Area and San Diego, where it rose by 0.9 percentage points since last March. The Inland Empire had the second-largest unemployment increase, up 0.8 percentage points, corresponding to its slowdown in job growth. Despite these jumps, the highest unemployment rates were in the San Joaquin Valley metros, which stood at 8.9% in March, and in regions outside major metros, which had a rate of 7.3%.
California’s divergence from national trends in the past two years is largely due to significant declines in the information sector, which is heavily concentrated in Los Angeles and the Bay Area. Los Angeles lost 30,600 jobs (14.3%) in this sector over the last year, while the Bay Area lost 22,200 jobs (9%). For comparison, the sector fell by just 1% nationally in the last year.
The administrative services sector also shrank more in California than in the U.S., contributing significantly to the state’s differential trend. This change was driven by declines in Los Angeles and San Diego, where employment fell by 3% from a year ago, and job growth decelerated. In San Diego, jobs had grown on average by 4% between 2019 and 2023. Nationally, the sector declined by only 1%.
However, certain sectors experienced strong growth. The Greater Sacramento region saw faster job growth in health care, construction, education, and government. Health care and government are key sectors for the region, contributing 16.9% and 24.3% of jobs in March 2024, respectively. In the Orange metro area, job gains in arts and entertainment grew by 10.6%, compared to just 0.1% growth in the four years prior. Health care and government also played an important role. The San Joaquin Valley saw overperformance in the same sectors, plus administrative services, relative to their performance between 2019 and 2023.
In all, across the state’s major metros, health care drove job growth in the past year, outpacing recent trends. Construction jobs strengthened job growth in the Sacramento, Inland Empire, and Orange metros. Educational services also contributed to substantial job growth in many regions.
Despite these positive trends, certain sectors experienced softening in employment growth. The transportation and warehousing sector, which had driven California’s job growth, especially in the Inland Empire and the San Joaquin Valley, saw a decline. Transportation jobs in these regions had grown by about 11% annually, on average, between 2019 and 2023 but declined by 1% in the past year. The accommodation and food services sector also contributed to job losses in these regions.
Additional sectors contributed to regional softening in the labor market. For example, in the San Diego, Bay Area, and Los Angeles metros, professional and scientific service jobs declined in the last year after averaging annual growth rates between 1.4% and 2.7% in the four years prior.
California is a complex economy with wide-ranging sectors and regions, each with its strengths and challenges. While statewide indicators provide a general economic outlook, the strengths and challenges at the regional and sector level shape the day-to-day economic realities for individual Californians. This complex economic landscape underscores the need for targeted policies and interventions that address the unique needs of different regions and sectors, ensuring balanced and inclusive growth across the state.
Published by: Nelly Chavez
