THE IE LABOR MARKET PULSE
Monthly Analysis and Insights on the Latest Riverside and San Bernardino Jobs Data
December 16, 2025
Special Note: This Labor Market Pulse, the first release since September 22nd, presents the most recent regional labor market information for the month of September. Publication was delayed due to the federal government shutdown, from October 1st through November 12th, which postponed the collection and release of labor force data.
UNEMPLOYMENT RATE JUMPS HIGHER; LABOR FORCE INCREASES BY 8,900
The Inland Empire’s seasonally adjusted unemployment rate for September 2025 was 5.9%, reflecting a 0.3% increase from the previous month’s revised 5.6% unemployment rate. The California unemployment rate ticked up by 0.1% over the month, increasing from 5.5% in August to a 5.6% unemployment rate in September. While the national unemployment rate ticked up by 0.1% over the month, the 4.4% national unemployment rate is considerably less than that of the Inland Empire and California as a whole. In September, 8,900 individuals joined the labor force, increasing the total civilian labor force in Riverside and San Bernardino to 2.26 million people.
Figure 1: Monthly Seasonally Adjusted Civilian Unemployment Rate, IED Region, California, US, September 2025
Source: CA EDD LMID, Industry Employment September 2025; Bureau of Labor Statistics, Civilian Unemployment Rate Table
The labor force expanded in September as employment increased by 13,200 residents, while the number of unemployed residents declined by 4,300 compared to August. This combination indicates that job growth was strong enough not only to absorb new and returning workers but also to reduce unemployment, signaling an improvement in regional labor market conditions.
INLAND EMPIRE JOBS UP
The latest employment data from the California Labor Market Information Division (LMID) shows that the region added 4,300 nonfarm jobs between August and September 2025, a 0.3% increase in employment. This growth is similar to the average September gain of 0.3% seen over the past four years. Over the month, five sectors added jobs, ten sectors lost jobs, and four sectors saw no change in job counts.
Figure 2 displays the sectors that gained and lost the most jobs from August to September 2025. Government (+7,000 jobs), Private Educational Services (+1,500 jobs), and Health Care and Social Assistance (+700 jobs) saw the largest gains in industries across the region in September 2025. Construction (-1,500 jobs), Accommodation and Food Services (-1,100 jobs), and Professional, Scientific, and Technical Services (-800 jobs) experienced the largest job losses across all industries.
Figure 2: Largest Monthly Job Gains and Losses by Sector, Inland Empire-Desert Region, September 2025
Source: CA EDD LMID, Industry Employment September 2025
In September 2025, Government employment grew by 7,000 or 2.6% from the prior month. Job gains over the month are aligned with historical averages and are primarily driven by Local Government Educational Services (+6,800 jobs), think of K-12 public schools. State Government employment grew by 500 jobs over the month or 1.9%, while Federal Government employment remained flat over the month.
Following the Government sector, the Private Educational Services sector added the most jobs, adding 1,500 jobs to the region over the month. This job growth over the month is consistent with historical job growth. Health Care and Social Assistance added 700 jobs over the month, significantly more than the flat employment typically added between August and September. Administrative and Support and Waste and Remediation Services grew by 0.7% over the month, adding 700 jobs, despite historically shedding 225 jobs between August and September. While 300 jobs were added to the regional Transportation and Warehousing sector, this job growth was lower than typically seen at 1,650 jobs added between August to September.
The number of jobs in the Construction sector decreased by 1,500 between August and September 2025. This job loss exceeds the Construction sector’s typical decrease of 1,000 jobs over the month. The region’s Accommodation and Food Services employment decreased by 1,100 jobs over the month, despite typically only shedding 275 jobs between August and September. Professional, Scientific, and Technical Services employers shed 800 jobs over the month, more than the typically shedding 550 jobs over this period.
PORT TRAFFIC & REGIONAL TRANSPORTATION AND WAREHOUSING
Since our last Labor Market Pulse, two additional months of port traffic information have been released by the Port of Los Angeles and the Port of Long Beach, with data through October. Port activity provides insight into how global trade dynamics translate into changes in the Inland Empire’s transportation and warehousing workforce. Between August 2025 and October 2025, cargo volume decreased by 11.5%1 at the Port of Los Angeles and decreased by 9.3%2 at the Port of Long Beach. Despite the drop in port traffic between August and October, container movement is down 6.3% over the year at the Port of Los Angeles but up 4.1% at the Port of Long Beach. Since port traffic serves as a leading indicator for transportation and warehousing employment, we will report next month whether this sizable decrease in container volume will impact regional transportation and warehousing employment.
REGIONAL OUTLOOK
The Inland Empire’s labor market delivered mixed results in September. The seasonally adjusted unemployment rate rose to 5.9%, but the labor force expanded by 8,900 people as employment increased and unemployment declined, an overall sign of underlying strength. Nonfarm payrolls grew by 4,300 jobs, in line with typical September gains. Government drove most of the growth with a 7,000 job increase tied to Local Government Educational Services. Private Educational Services and Health Care also added jobs at or above their historical pace.
Several sectors moved in the opposite direction. Construction shed 1,500 jobs over the month, more than its historical September dip. Similarly, Accommodation and Food Services and Professional, Scientific, and Technical Services posted notable losses. Transportation and Warehousing underperformed compared to past years, and a sharp drop in port traffic from August to October could create additional headwinds in the months ahead. The region continues to add jobs and increase its labor force, but the pace of growth is vulnerable to continued declines in port-driven activity.
September’s data reflects a labor market that remains resilient, but increasingly uneven across sectors. While job growth kept pace with seasonal norms, softness in key private-sector industries and declining port activity highlight the importance of proactive investment to sustain long-term growth.
To learn more about this data or IEGO’s Labor Market Research, please email
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Sources
- Port of Los Angeles. (October 2025). Container Statistics. Retrieved from: https://www.portoflosangeles.org/business/statistics/container-statistics
- Port of Long Beach Port. (October 2025). Latest Statistics. Retrieved from: https://polb.com/business/port-statistics/#latest-statistics
Methodology
California’s Labor Market Information Division (LMID) compiles its monthly labor force, employment, and unemployment statistics through a combination of surveys, administrative records, and statistical adjustments. The basic data comes from sampled employer-and-government agency surveys (for payroll/employment) and household surveys (for unemployment/labor force participation), supplemented by more complete data such as unemployment insurance tax records, and then seasonally adjusted to account for predictable calendar patterns (for example, school schedules, holidays). Because many surveyed entities report after initial deadlines, and because some adjust or correct their submissions, the first published estimates are preliminary.
Over subsequent months, LMID revises its estimates as late survey responses arrive, and seasonal adjustment models are refined. In addition, there is an annual “benchmark” revision (in March) in which sample-based monthly data are aligned with more complete employment counts (for example from unemployment insurance records) to improve accuracy by anchoring the series to actual universe totals. Because of these revisions and methodological refinements, month-to-month numbers can and do change — not due to error or manipulation, but because later information yields a clearer, more accurate picture of the labor market. This dataset continues to be the “gold standard” of gauging monthly employment changes at both a national and regional level.
