THE IE LABOR MARKET PULSE
Monthly Analysis and Insights on the Latest Riverside and San Bernardino Jobs Data
January 26, 2025
UNEMPLOYMENT RATE FLAT; LABOR FORCE DECREASES BY 14,400
The Inland Empire’s seasonally adjusted unemployment rate for December 2025 was 5.5%, reflecting no change from the previous month’s revised 5.5% unemployment rate. The California unemployment rate was also flat over the month, at 5.5% in December. The national unemployment rate decreased by 0.2% over the month; the 4.4% national rate is lower than those in the Inland Empire and California as a whole. In December, 14,400 individuals left the labor force, reducing the total civilian labor force in Riverside and San Bernardino to 2.27 million.
Figure 1: Monthly Seasonally Adjusted Civilian Unemployment Rate, IED Region, California, US, December 2025
Source: CA EDD LMID, Industry Employment December 2025; Bureau of Labor Statistics, Civilian Unemployment Rate Table
The labor force contracted in December, as employment decreased by 6,100 residents, while the number of unemployed residents declined by 8,300 from November. December’s unemployment rate improvement masked a weakening labor market, as more residents left the workforce than found jobs.
INLAND EMPIRE JOBS UP
The latest employment data from the California Labor Market Information Division (LMID) shows that the region added 1,000 nonfarm jobs between November and December 2025, a 0.1% increase in the regional job count. This growth rate aligns with the 0.1% December gain over the past four years. Over the month, seven sectors added jobs, seven sectors lost jobs, and five sectors saw no change in job counts.
Figure 2 displays the sectors that gained and lost the most jobs from November to December 2025. Transportation and Warehousing (+1,700 jobs), Retail Trade (+1,400 jobs), and Health Care and Social Assistance (+700 jobs) saw the largest gains in industries across the region in December 2025. Construction (-1,200 jobs), Other Services (-1,000 jobs), and Accommodation and Food Services (-800 jobs) experienced the largest job losses across all industries.
Figure 2: Largest Monthly Job Gains and Losses by Sector, Inland Empire-Desert Region, December 2025
Source: CA EDD LMID, Industry Employment December 2025
In December 2025, Transportation and Warehousing employment grew by 1,700 jobs or 0.8% from the prior month. While directionally aligned with historical averages, job gains over the month were slightly greater than the four-year average of 1,550. Job gains were driven by gains in the Couriers and Messengers subsector, think delivery services. The expansion of this subsector is consistent with historical averages, likely driven by increased holiday deliveries. Despite the gains in sector employment over the month, the Transportation and Warehousing sector is down 5,000 jobs or 2.3% over the year.
Following the Transportation and Warehousing sector, the Retail Trade sector added the most jobs to the region, with 1,400 jobs gained over the month, or 0.7%. This month’s job growth exceeds historical levels, with the sector typically increasing job counts by 0.5% in December. Health Care and Social Assistance added 700 jobs over the month, consistent with job gains typically seen over the month. The Health Care and Social Assistance sector expanded considerably in 2025, adding 15,400 jobs to the region, a 5.3% increase.
The number of jobs in the Construction sector decreased by 1,200 between November and December 2025, or a 1.1% decrease. This job loss aligns with the Construction sector’s typical decline of 1,050 jobs over the month, driven by job losses in the specialty trade contractor subsector (-800 jobs). Construction sector employment is down 8,200 jobs year over year, a 7.2% decline.
The region’s Other Services employment decreased by 1,000 jobs over the month, despite typically only shedding 250 jobs between November and December. Accommodation and Food Services employers shed 800 jobs over the month, despite typically adding more than 100 jobs.
PORT TRAFFIC & REGIONAL TRANSPORTATION AND WAREHOUSING
Since our last Labor Market Pulse, port traffic information for December has been released by the Port of Los Angeles and the Port of Long Beach. Port activity provides insight into how global trade dynamics translate into changes in the Inland Empire’s transportation and warehousing workforce. Between November 2025 and December 2025, cargo volume increased by 1.2%1 at the Port of Los Angeles and by 2.0%2 at the Port of Long Beach. Over the year, container volume at the Port of Los Angeles was flat, while the Port of Long Beach increased container volume by 2.4%.
The regional Transportation and Warehousing sector is down 2.3% over the year, in contrast with container volume. The recent month-over-month uptick in port traffic may not yet be reflected in regional employment levels.
REGIONAL OUTLOOK
December data suggest a moderation in labor market conditions in the Inland Empire. While the unemployment rate was unchanged, declines in employment indicate that some workers exited the labor force. This pattern points to weakening labor market engagement as the region closed out the year.
Job growth over the month was modest and aligned with historical trends, with gains concentrated in Transportation and Warehousing, Retail Trade, and Health Care and Social Assistance. Transportation and Warehousing job growth reflected holiday-driven demand in Couriers and Messengers, but remained insufficient to offset ongoing year-over-year declines. Job losses in Construction, Other Services, and Accommodation and Food Services exceeded seasonal norms, signaling a softening in market demand.
Recent increases in port activity may provide near-term support for logistics employment, though the disconnect between container volumes and regional job levels suggests limited upside. Overall, the data point to a stable but cooling labor market, with risks tied to labor force participation and the durability of sector-specific hiring as seasonal demand fades.
“From a community perspective, continued declines in unemployment are encouraging, but the contraction in the labor force reminds us that stability does not always equal momentum. For employers, this data reinforces the need to focus on retention, adaptability, and strategic planning as we enter a more competitive 2026.”
To learn more about this data or IEGO’s Labor Market Research, please email
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Sources
- Port of Los Angeles. (December 2025). Container Statistics. Retrieved from: https://www.portoflosangeles.org/business/statistics/container-statistics
- Port of Long Beach. (December 2025). Latest Statistics. Retrieved from: https://polb.com/business/port-statistics/#latest-statistics
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.
