THE IE LABOR MARKET PULSE
Monthly Analysis and Insights on the Latest Riverside and San Bernardino Jobs Data
September 22, 2025
UNEMPLOYMENT RATE MOVES LOWER; LABOR FORCE INCREASES BY 10,700
The Inland Empire’s seasonally adjusted unemployment rate for August 2025 was 5.6%, reflecting a 0.1% decrease from the previous month’s revised 5.7% unemployment rate. The California unemployment rate remained flat over the month, maintaining a 5.5% unemployment rate in August. While the national
unemployment rate ticked up by 0.1% over the month, the 4.3% national unemployment rate is considerably less than that of the Inland Empire and California as a whole. Last month, 10,700 individuals joined the labor force—increasing the total civilian labor force in Riverside and San Bernardino to 2.25 million people.
The labor force expansion in August was driven by 16,100 more employed residents and 5,400 fewer residents than recorded in July. The combination of increasing employment and decreasing unemployment is a positive indicator for the regional economy.
INLAND EMPIRE JOBS UP
The latest employment data from the California Labor Market Information Division (LMID) shows that the region added 6,400 nonfarm jobs between July and August 2025—a 0.4% increase in employment.
This growth is slightly lower than the average August gain of 0.5% seen over the past four years. Over the month, nine sectors added jobs, five sectors lost jobs, and five sectors saw no change in job counts.
Figure 1 displays the sectors that gained and lost the most jobs from July to August 2025. Government (+4,200 jobs), Health Care and Social Assistance (+1,800 jobs), Administrative and Support and Waste and Remediation Services (+900 jobs), and Accommodation and Food Services (+600 jobs) saw the largest gains in industries across the region in August 2025. Construction (-1,200 jobs), Wholesale Trade (-400 jobs), Retail Trade (-300 jobs), and Other Services (-200 jobs) experienced the largest job losses across all industries.
Figure 1: Largest Monthly Job Gains and Losses by Sector, Inland Empire-Desert Region, August 2025
Source: CA EDD LMID, Industry Employment August 2025
In August 2025, Government employment grew by 4,200 or 1.6% from the prior month. Job gains over the month are aligned with historical averages and are driven by Local Government Educational Services (+5,500 jobs), think K-12 public schools. Gains made by Local Government Education Services overshadow the losses seen by the State Government (800 jobs) and Federal Government (-100 jobs).
Following the Government sector, the Health Care and Social Assistance sector added the most jobs, adding 1,800 jobs to the region over the month. This job growth over the month is consistent with historical job growth. Administrative and Support and Waste and Remediation Services added 900 jobs over the month, significantly more than the 100 jobs typically added between July and August. This is a diverse sector, containing employers providing office administrative services, business support services, services to buildings and dwellings, security services, waste management services, and remediation services. Accommodation and Food Services employers, which typically shed nearly 900 jobs over the month, added 600 jobs, growing by 0.4%.
The number of jobs in the Construction sector decreased by 1,200 between July and August 2025. This job loss exceeds the Construction sector’s typical decrease of 400 jobs over the month. The region’s Wholesale Trade employment decreased by 400 jobs over the month, despite typically keeping employment levels flat between July and August. Retail Trade employers shed 300 jobs over the month, despite typically adding over 400 jobs between July and August. The Other Services sector, which includes Repair and Maintenance, Personal and Laundry Services, and Religious, Grantmaking, Civic, Professional, and Similar Organizations employers, shed 200 jobs over the month.
The Transportation and Warehousing sector added 400 jobs in August 2025, primarily within the Warehousing and Storage industry. This 0.2% increase in job counts surpasses the four-year historical average, in which the sector typically has flat employment. Transportation job counts in August may signal growing confidence in the regional Transportation and Warehousing sector or a product of the significant increase in port traffic in July 2025.
PORT TRAFFIC & REGIONAL TRANSPORTATION AND WAREHOUSING
By analyzing monthly port activity, we can better understand how global trade dynamics translate into changes in the Inland Empire’s transportation and warehousing workforce. Between August 2024 and August 2025, cargo volume decreased by 1.3% 1 at the Port of Long Beach and decreased by 0.2% 2 at the Port of Los Angeles. Despite the slight drop in port traffic in August, container movement is up overall for the year. Since port traffic serves as a leading indicator for transportation and warehousing employment, we will report next month whether this month’s slight decrease in container volume will impact regional transportation and warehousing employment.
REGIONAL OUTLOOK
The Inland Empire’s labor market delivered moderate but uneven gains in August. Government and Health Care hiring provided the strongest lift, while losses in Construction, Wholesale trade, and Retail trade tempered overall momentum. Transportation and Warehousing continued to edge upward, supported by earlier growth in port traffic, though August’s slight dip in container movement could present a challenge if it extends into fall. Despite these modest gains, the regional unemployment rate remains higher than state and national levels, and overall job growth fell just below historical August averages, both signs that the recovery
faces constraints. Even so, steady labor force expansion and consistent gains across multiple industries suggest the region is laying a foundation for continued progress, provided these headwinds do not intensify.
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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.
