THE IE LABOR MARKET PULSE
Monthly Analysis and Insights on the Latest Riverside and San Bernardino Jobs Data
March 28, 2025
UNEMPLOYMENT RATE STEADY; REGION CONTINUES TO SHED JOBS
The Inland Empire’s seasonally adjusted unemployment rate was 5.5% in February – holding steady from the previous month’s revised figures. The California unemployment rate was unchanged, remaining at 5.4%, while the US rate ticked up by 0.1% to 4.1%. Today’s reading also showed the region shed 6,200 jobs from last month.
Health Care and Social Assistance (+1,200 jobs) and Private Educational Services (+1,100 jobs) saw the largest job gains in industries across the region in February 2025. Transportation and Warehousing (-6,200 jobs) and Retail Trade (-1,700 jobs) once again saw the largest declines across all industries. However, the declines were less severe compared to those reported in January. Last month, 2,100 individuals exited the labor force—either by moving out of the region or stopping their job search—reducing the total civilian labor force in Riverside and San Bernardino to 2.231 million people.
INLAND EMPIRE JOB LOSSES ACROSS MOST SECTORS OUTPACE JOB GAINS
The latest employment data from the California Labor Market Information Division (LMID) show that the region lost 6,200 nonfarm jobs between January and February 2025—a 0.4% decline in total employment. This decline contrasts sharply with the five-year average, in which the region typically gains more than 10,500 jobs during the same period. Notable deviations from historical patterns occurred in the construction, transportation and warehousing, and accommodation and food services sectors.
Despite the overall job losses, the private educational services and health care and social assistance sectors saw growth. Private educational services added more than 1,000 jobs, a 4.1% increase, while health care and social assistance expanded by 0.4%, also adding over 1,000 jobs. Five industry sectors experienced no changes in employment over the month.
Figure 1: Monthly Job Losses, by Losing Industry, Inland Empire-Desert Region, February 2025
Source: CA EDD LMID, Industry Employment February 2025
In February 2025, six industry sectors that typically see modest job gains between January and February experienced slight contractions. These sectors include mining and logging, manufacturing, utilities, finance and insurance, real estate and rental and leasing, and government. Together, these industries shed 700 jobs over the month.
Over the past five years, the accommodation and food services sector has typically added 4,200 jobs between January and February, representing a 3.3% increase. However, in 2025, the sector showed no growth, remaining flat month-over-month. The retail trade sector lost 1,700 jobs in February, which aligns with typical patterns for the industry.
Regionally, job losses were driven by a significant drop in transportation and warehousing employment, which shed 6,500 jobs in February, a 3.2% decrease. Historically, this sector loses about 1,800 jobs during this time frame, so the 2025 losses exceed the usual decline. These losses were primarily due to the warehousing and storage subsector, which saw a 5.0% decrease with 6,400 jobs lost. Despite these losses, the couriers and messengers subsector added 100 jobs. This subsector includes businesses that deliver parcels and documents, often using bikes, foot, cars, trucks, or vans.
The construction sector contracted by 600 jobs in February 2025 (a 0.5% decrease), despite typically gaining around 2,100 jobs during this period. These losses were primarily in the specialty trade contractor subsector, which shed 600 jobs. This subsector includes companies specializing in specific construction activities, such as plumbing, electrical work, site preparation, and concrete pouring, rather than those overseeing entire projects.
On a positive note, six sectors saw job increases from January to February 2025, including wholesale trade, professional, scientific, and technical services, administrative support and waste management services, private educational services, healthcare and social assistance, and other services. However, despite the overall growth, job gains in each sector were below the typical increases observed over the past five years.
TEMPORARY SETBACKS AND REGIONAL RESILIENCE
Despite the challenges presented by larger-than-expected February job losses, the region’s labor market continues to show signs of resilience. Growth in private educational services and health care and social assistance highlight ongoing demand in these essential sectors, while professional, scientific, and technical services, as well as wholesale trade, also saw employment gains.
Although industry sectors such as construction, transportation and warehousing, and accommodation and food services experienced setbacks, their long-term trajectories remain strong. For example, these sectors contributed to more than half of the regional job growth over the last five years, from February 2020 to February 2025, collectively adding 55,900 jobs to the region. Furthermore, the couriers and messengers subsector, within transportation and warehousing, continued to expand, demonstrating areas of stability amid broader declines.
Notably, despite job losses across multiple industries, the region’s unemployment rate remained unchanged over the month. This suggests that while some sectors experienced contractions, other areas of the economy continued to absorb job seekers, providing stability in the labor market.
By aligning workforce development initiatives with industry needs, regional stakeholders can support long-term employment stability and help workers transition into growing sectors. While February’s employment figures reflect temporary challenges, they also highlight opportunities for strategic investment in high-demand industries, ensuring that the region remains well-positioned for future job growth.
Inland Empire Growth and Opportunity
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