THE IE LABOR MARKET PULSE
Monthly Analysis and Insights on the Latest Riverside and San Bernardino Jobs Data
May 19, 2025
UNEMPLOYMENT RATE DROPS SIGNIFICANTLY; LABOR FORCE SHRINKS BY 15,700
The Inland Empire’s seasonally adjusted unemployment rate was 4.6% in April 2025, reflecting a significant 0.7% decrease from the previous month. Both the California and USA unemployment rates remained flat compared to the previous month, holding steady at 5.3% and 4.2% respectively. Additionally, the Inland Empire reported a net gain of 6,400 jobs compared to the prior month, erasing last month’s net losses (1,400) and gaining additional jobs.
Health Care and Social Assistance (+2,400 jobs) and Accommodation and Food Services (+2,300 jobs) saw the largest job gains in industries across the region in April 2025. Retail Trade (-700 jobs) and Transportation and Warehousing (-400 jobs) experienced the largest job losses across all industries. The decline in Transportation and Warehousing was less severe compared to those reported in March, however this is the fourth straight month with declines in this sector. Last month, 15,700 individuals left the labor force—shrinking the total civilian labor force in Riverside and San Bernardino to 2.232 million people.
INLAND EMPIRE JOB GAINS ACROSS MOST SECTORS
The latest employment data from the California Labor Market Information Division (LMID) shows that the region gained 6,400 nonfarm jobs between March and April 2025—a 0.4% increase in employment. This increase aligns with the four-year average, in which the region typically gains nearly 7,300 jobs during the same period. Regional job growth was driven by gains made in the Construction; Health Care and Social Assistance; and Accommodation and Food Services sectors.
Despite the overall job gains, notable deviations from historical patterns occurred in the Wholesale Trade; Retail Trade; Utilities, Information; Management of Companies and Entrepreneurships; and Arts, Entertainment, and Recreation sectors, which collectively shed 1,300 jobs over the month, despite typically adding nearly 800 jobs between March and April over the last four years. The seven sectors that shed jobs over the month (-1,700 jobs) were much less than the gains made by the eight sectors that added jobs over the month (+8,100 jobs). Four industry sectors experienced no changes in employment over the month.
Figure 1: Monthly Job Gains, by Growing Industry Sector, Inland Empire-Desert Region, April 2025
Source: CA EDD LMID, Industry Employment April 2025
In April 2025, the Retail Trade sector shed the most jobs, contracting by 700 jobs, or 0.4%. The Utilities and Management of Companies and Enterprises sectors saw the greatest proportional decreases in employment over the month, each losing 1.8% and 1.1% of jobs, respectively. However, while these losses may seem considerable, they are primarily a result of their small size, only losing a combined total of 200 jobs over the month.
The Health Care and Social Assistance sector added the most jobs over the month, growing by 2,400 jobs, increasing employment by 0.8%. April job gains made in this sector exceed the growth seen in this sector over the last four years, in which approximately 1,000 jobs are added, growing by 0.4%. The Health Care and Social Assistance sector has been a significant driver of regional job growth, growing by 5.6% over the year, adding 15,400 jobs to the regional economy.
Growth in the Accommodation and Food Services sector over the month aligns with historical trends. This sector added 2,300 jobs in April, growing by 1.5%. However, employment in this sector is down 7,800 jobs or 4.7% over the year. The Construction sector added 2,100 jobs in April, growing by 1.9%. Job growth over the month is highly aligned with historical monthly changes in employment in this sector. Despite recent gains in employment, this sector is still down 5.1% over the year, in which it has shed 6,000 jobs.
In April, Transportation and Warehousing employment declined by 400 jobs or 0.2%. Despite four months of consistent job losses in this sector, the current employment numbers are still higher than this time last year, up 1,800 jobs or 0.9%. Additionally, this sector has shed an average of 3,500 jobs between March and April over the last four years, indicating the recent contraction is less than the historical average.
PORT TRAFFIC HEADWINDS & IMPACTS ON REGIONAL TRANSPORTATION AND WAREHOUSING
The Port of Los Angeles and the Port of Long Beach, two of the busiest ports in the United States, play a significant role in the economy of the Inland Empire, as goods from these ports travel through the region on their way to the rest of the country. This relationship between the ports and the Inland Empire economy has facilitated the growth of the region’s transportation and warehousing sector and developed the region’s logistics expertise. As a result, port traffic information may provide context and serve as a leading indicator of the regional transportation and warehousing sector, aside from industry employment information.
Overall, the Port of Long Beach recorded a 15.6% increase in port traffic when comparing April 2024 to April 2025. While the Port of Los Angeles has yet to release April container statistics data, information from the first three months of the year indicates that port traffic has increased by 4.7% compared to the same time period in 2024. While port traffic has been on the rise over the last year, recent increases in port traffic have been attributed to companies responding to the uncertain tariff situation. However, the Port of Los Angeles has recently indicated an expectation of a 35% year-over-year decrease in imports, based on a decline in containers leaving China, which accounts for roughly 45% of the port’s traffic. The Port of Long Beach anticipates a double-digit drop in imports in May, despite the recent reduction of tariffs with China. It remains unclear how the recent pause on high tariffs with China will affect actual port activity and, in turn, the Transportation and Warehousing sector in the Inland Empire. So far, recent increases in port traffic have not led to employment growth in the sector, suggesting that the impact may be limited
JOBS LOSSES IN TRANSPORTATION & WAREHOUSING CONTINUE, DESPITE REGIONAL JOB GROWTH
The Transportation and Warehousing industry sector saw job losses for the fourth straight month in 2025. While this sector has added more than 47,700 jobs over the last five years, driving regional job growth, recent job losses may indicate that this sector may not be a reliable source of growth in the future. The uncertainty regarding tariffs may continue to trouble this sector. More time and information are needed before drawing broad conclusions, but recent trends suggest the Inland Empire’s economy may be shifting, with some traditionally dominant industries like Transportation and Warehousing slowing down, while others such as Health Care, Social Assistance, and Private Education are becoming more prominent drivers of job growth. For example, while the Transportation and Warehousing sector experienced modest growth over the year at 0.9%, Private Educational Services and Health Care and Social Assistance sectors saw significant growth over this period, growing by 5.3% and 5.6% respectively.
Despite these losses in a key sector, the number of regional jobs grew by 6,400 over the month. The Health Care and Social Assistance sector continues to be a major driver of regional job growth, adding 2,400 jobs over the month and 15,400 jobs over the year. While the Construction and Accommodation and Food Services sectors added a substantial number of jobs over the month, both sectors have yet to recover the jobs lost (6,000 and 7,800 jobs, respectively) over the year. In April, more sectors added jobs or remained flat when compared to the previous months this year, potentially indicating a reversal of the continued job loss trend seen this year. While some economic indicators are concerning, such as the downturn in the labor force, the decrease in regional unemployment rate and the increase in the number of nonfarm jobs may be positive signs for the future of employment in the Inland Empire.
We’re in a moment of real change in the Inland Southern California Region. As the economy shifts, our work is about creating pathways for students, workers, and small businesses to grow in the industries that will shape what’s next. It will take strong partnerships, and that’s the work we’re leaning into every day.
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Port Activity Sources
- Port of Long Beach Port. (April 2025). Latest Statistics. Retrieved from: https://polb.com/business/port-statistics/#latest-statistics
- Port of Los Angeles. (March 2025). Container Statistics. Retrieved from: https://www.portoflosangeles.org/business/statistics/container-statistics
- NBC News (May 2025). U.S. companies surge shipments from China following tariff pause. Retrieved from: https://www.nbcnews.com/politics/economics/us-companies-surge-shipments-china-tariff-pause-rcna207076
- CNBC. (April 2025). Port of Los Angeles says shipping volume will plummet 35% next week as China tariffs start to bite. Retrieved from: https://www.cnbc.com/2025/04/29/port-of-los-angeles-sees-shipping-volume-down-35percent-next-week-as-tariffs-bite.html
- Marine Log (May 2025). Port of Long Beach braces for double digit decline in May numbers. Retrieved from: https://www.marinelog.com/news/port-of-long-beach-braces-for-double-digit-decline-in-may-numbers/
