Inland Empire Unemployment Ticks Up to 5.1% in July

Job Market Dynamics Shift as Healthcare, Construction, and Business Services See Growth While Manufacturing Jobs Decline

• Data shows more people are entering the job market in Riverside and San Bernardino counties
• Private employers added a total of 5,400 jobs in July led by Healthcare and Social Assistance, Professional and Business Services, and Construction
• Manufacturing lost another 300 jobs in July, down a total of 2,700 (2.7%) from a year ago

According to the Inland Empire / Desert Region Center of Excellence for Labor Market Information, Inland Economic Growth and Opportunity (IEGO) July’s 5.1% seasonally adjusted unemployment rate represents a 0.4% point increase from June’s reading, the highest since March. This data is in comparison to California’s unemployment rate which held steady at 5.2%.

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), but increases were offset by a loss of 18,000 government jobs, almost all in local government educational services as schools went on summer break.

“Despite the slight uptick in unemployment, the Inland Empire continues to show resilience with strong job growth in key sectors such as 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,” said Mathew Mena, Executive Director, IEGO

The data also showed more people are entering the job market in Riverside and San Bernardino counties. There were 2.179 million people working or looking for work in the Inland Empire in July, up 15,000 from a year ago.

Manufacturing Declines

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. IEGO 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,” said Shannon Moran, Director, Inland Empire / Desert Region Center of Excellence for Labor Market Information, IEGO

Federal Reserve Impact

July also saw annual inflation dip below 3% for the first time since 2021, a positive sign that 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 Inland Empire businesses and families, which should have a positive effect on local job growth.

To learn more about this data or IEGO’s Labor Market Research, go to https://iegocollab.com/data/