THE IE LABOR MARKET PULSE
Monthly Analysis and Insights on the Latest Riverside and San Bernardino Jobs Data
August 2024
Inland Empire Unemployment Ticks Up to 5.1% in July, Just Below the Statewide Average
July’s 5.1% seasonally adjusted unemployment rate represents a 0.4% increase from June’s reading, the highest in the Inland Empire since March. California’s unemployment rate held steady at 5.2%.
While private employers added a total of 5,400 jobs in July led by Healthcare and Social Assistance (+2,400 jobs), Professional and Business Services (+1,900 jobs) and Construction (+1,200 jobs) increases were offset by a loss of 18,000 government jobs, almost all in local government educational services as schools went on summer break.
Friday’s data also showed more people are entering the job market in Riverside and San Bernardino counties. There were 2.179M people working or looking for work in the Inland Empire in July, up 15,000 from a year ago.
Declines in manufacturing
Manufacturing lost another 300 jobs in July, down a total of 2,700 (2.7%) from a year ago. Inland Empire manufacturing firms do not appear to be picking up their hiring anytime soon. Our analysis of local job posting data showed manufacturing business posted 9% fewer jobs in July compared to June, the only major industry in the region with fewer postings month over month.
“We think of job posting data as a leading indicator for future employment trends. It’s good to see most industries increasing their activity on public job boards month over month; hopefully, those companies find the talent they need, make offers, and onboard new workers in August so we see growth in next month’s numbers,” says Shannon Moran, Director of the Inland Empire/Desert Region Center of Excellence for Labor Market Information.
All Eyes on the Federal Reserve
July also saw annual inflation dip below 3% for the first time since 2021, a positive sign the end of the inflation fight is in sight. This is the latest in a string of good news that a “soft landing” – taming inflation without significantly hurting the economy – remains on the table. The Fed is expected to cut interest rates for the first time at its September meeting after 11 rate hikes since 2022 on this good news. Lower interest rates mean lower borrowing costs for IE businesses and families, which should have a positive effect on local job growth.
Despite the slight uptick in unemployment, the Inland Empire continues to show resilience with strong job growth in key sectors like Healthcare, Professional Services, and Construction. As more people join the workforce, our region remains poised for future opportunities, driven by the dynamic industries that are shaping our economy.
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