THE IE LABOR MARKET PULSE

Monthly Analysis and Insights on the Latest Riverside and San Bernardino Jobs Data

June 23, 2025

UNEMPLOYMENT RATE TICKS HIGHER; LABOR FORCE SHRINKS BY 1,900

The Inland Empire’s seasonally adjusted unemployment rate was 4.7% in May 2025, reflecting a slight 0.1% increase 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 4,600 jobs compared to the prior month, building on last month’s gains. 

Administrative and Support and Waste and Remediation (+1,400 jobs) and Government (+1,100 jobs) saw the largest job gains in industries across the region in May 2025. Retail Trade (-600 jobs), Professional, Scientific, and Technical Services (-600 jobs), and Private Education Services (-600 jobs) experienced the largest job losses across all industries. Transportation and Warehousing saw a smaller decline as compared to those reported in April (-100 jobs), however this is the fifth straight month with declines in this sector. Last month, 1,900 individuals left the labor force—shrinking the total civilian labor force in Riverside and San Bernardino to 2.231 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 3,100 nonfarm jobs between April and May 2025—a 0.2% increase in employment. This increase aligns with the four-year average, in which the region typically grows by 0.3%, gaining 4,400 jobs during the same period. Regional job growth was driven by gains made in the Administrative and Support and Waste and Remediation Services; Government; and Accommodation and Food Services. 

Nearly all changes in industry employment recorded over the month align with historical employment patterns. The Retail Trade sector is the only industry sector that deviated from historical employment patterns, shedding 600 jobs over the month, despite typically adding 300 jobs over this period over the last four years. The six sectors that shed jobs over the month (-2,200 jobs) were much less than the gains made by the nine sectors that added jobs over the month (+5,300 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, May 2025
Source: CA EDD LMID, Industry Employment May 2025

In May 2025, three sectors, Professional, Scientific, and Technical Services; Private Educational Services; and Retail Trade, each shed 600 jobs. While each of these sectors lost the same number of jobs, the impacts are not equivalent across sectors given the differences in original employment counts. The loss of 600 jobs resulted in a 2.1% drawdown in employment in the Private Educational Services, but only a 1.3% and 0.3% decrease in employment in the Professional, Scientific, and Technical Services and Retail Trade sectors, respectively. Despite job losses over the month, each of these sectors has grown over the year. 

The Administrative and Support and Waste and Remediation Services sector added the most jobs over the month, growing by 1,400 jobs, increasing employment by 1.3%. May job gains exceed the growth seen in this sector over the last four years, in which approximately 100 jobs are added, growing by less than 0.1%. Employment gains in this sector over the month are a product of the Employment Services industry, which includes establishments that connect businesses with workers. 

The largest sectors in the region, Government and Health Care and Social Assistance, have continually added jobs in 2025. Growth in the Government sector continued in May, adding 1,100 jobs, growing by 0.4%. This sector has been a major driver of regional job growth over the year, adding 8,500 jobs, growing by 3.1%. The Health Care and Social Assistance sector added 600 jobs over the month, growing by 0.2%. This sector has added the most jobs over the year, growing by 5.3%, adding 14,800 jobs. 

In May, Transportation and Warehousing employment declined by 100 jobs or 0.2%. This contraction is less than the historical average, in which this sector has typically shed 350 jobs between April and May over the last four years. While the sector is up 1,900 jobs or 1.0% since this time last year, Transportation and Warehousing employment has declined by 11,600 jobs since January due to consistent jobs losses.

PORT TRAFFIC HEADWINDS & IMPACTS ON REGIONAL TRANSPORTATION AND WAREHOUSING

Port traffic information may provide context and serve as a leading indicator of the regional transportation and warehousing sector, aside from industry employment information. The Port of Long Beach recorded an 8.2% decrease in port traffic when comparing May 2024 to May 2025.1 The Port of Los Angeles experienced a 4.8% decrease in port traffic over the year.2 Imports from China declined by 31.6% and 29.9%, respectively, from April to May.3 Imports from China account for 40% of imports at the Port of Los Angeles and 63% at the Port of Long Beach, indicating Southern California is particularly sensitive to the ongoing tariff situation.4 

Despite the recent tariff agreement between China and the United States, analysts do not expect a surge in activity as businesses are cautious to act due to the unpredictable nature of the tariff environment.5 Truck drivers and warehouse workers in the Inland Empire are likely going to experience the repercussions of diminished port activity.6 It remains to be seen how the recent agreement with China will impact the region’s Transportation and Warehousing sector, which has shed over 25,000 jobs this year after reaching a sector high in December 2024.

JOB GROWTH AMID SLIGHT LABOR FORCE CONTRACTION

While the seasonally adjusted unemployment rate ticked up by 0.1% over the month, the 4.7% unemployment rate is still low from a historical perspective. Despite the labor force contracting by 1,900 individuals, there were 900 fewer individuals identified as unemployed over the month. The region gained 3,100 nonfarm jobs over the month, indicating that regional businesses have successfully filled open positions. The Accommodation and Food Services and Construction sectors both saw 0.5% increases in employment over the month, potentially reversing the losses incurred by these industries over the year. In May, more sectors added jobs or remained flat than those that lost jobs. While the slight increase in the regional unemployment rate is undesirable, the increase in the number of regional jobs and gains made across industry sectors serve as positive indicators for the Inland Empire economy.

The recent decline in Transportation and Warehousing employment, which has been a driver of regional employment growth over the last five years, indicates that the regional economy could be stronger and more resilient by expanding into high-value areas such as advanced manufacturing, clean economy, IT services, and health care. By diversifying our local industries, the region can better insulate itself against economic uncertainty in the global market.

With growth in the Transportation sector driven by automation and innovative technology rather than workforce, it is clear that diversifying the Inland Empire’s economy is more important than ever. By focusing regional efforts on IT services, advanced manufacturing, healthcare, and clean economy, we can create a more resilient and future-ready workforce in the Inland Empire.

Matt Mena

Executive Director
Inland Economic Growth and Opportunity (IEGO)

Port Activity Sources

  1. Port of Long Beach Port. (June 2025). Latest Statistics. Retrieved from: https://polb.com/business/port-statistics/#latest-statistics 
  2. Port of Los Angeles. (June 2025). Container Statistics. Retrieved from:  https://www.portoflosangeles.org/business/statistics/container-statistics 
  3. Baertlein, Lisa. (June 2025). US ocean container imports tumble in May as China tariffs take hold. Reuters. Retrieved from: https://www.reuters.com/business/autos-transportation/us-ocean-container-imports-tumble-may-china-tariffs-take-hold-2025-06-09/
  4. Sumagaysay, Levi. (May 2025). Trump trade war has already had huge effect on California ports. CalMatters. Retrieved from: https://calmatters.org/economy/2025/05/tariffs-california-ports/
  5. Ibid.
  6. Ibid.
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To learn more about this data or IEGO’s Labor Market Research, please email researchrequest@iegocollaborative.org