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Ten years after the great recession gave it a knock out punch The Inland Empire has the fastest job growth among Southern Californias powerhouse economies

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Longer Term Vulnerabilities – Labor Shortages, Trade War Impacts, Surging National Debt – Challenge Future Economic Growth For Nation, State, and Region
October 11, 2018— RIVERSIDE, Calif. (www.ucr.edu) — Although the Inland Empire was hit harder by the Great Recession than most places in the nation, its economy today looks very different, according to an new economic forecast released at the 9th annual Inland Empire Economic Forecast Conference. For the second year in a row, the region is home to the fastest job growth in Southern California, and, according to the analysis, when looking at pre-recession job peaks, is the most improved among the major surrounding metros of Los Angeles, San Diego, and Orange Counties.
 
From peak to trough, the Inland Empire lost 150,000 jobs and nonfarm employment fell 11.6%. Since bottoming out, however, the region has gained well over 350,000 jobs and nonfarm employment has increased 31%. 
 
“When an economy falls further during a downturn, it generally experiences a stronger relative recovery, but economic growth in the Inland Empire has been gaining momentum in recent years and is being strongly driven by its sharp affordability advantage, which has led to significant population gains,” said Christopher Thornberg  Director of the UC Riverside School of Business Center for Economic Forecasting and one of the report authors. “And although there are longer term threats to the economy that stem from labor shortages, Federal trade policies, and our hugely expanded national debt, growth is expected to continue through the next year at the local, state, and national level.“
 
The Inland Empire also stands out because it is the most improved Southern California economy, according to the analysis. Compared to its pre-recession peak, the Inland Empire today has 16.1% more jobs; this surpasses Los Angeles (+5.6%), Orange (+6.6%), and San Diego (+11.0%) Counties, as well as the state (+10.6%) and nation (+7.7%). 
 
“The progress the Inland Empire economy has made over the past couple of years is the latest phase in a years-long growth wave that has included broad-based employment gains across most industries, higher income and more local spending, rising home prices, and, as of late, increased construction activity,” said Robert Kleinhenz Executive Director of Research at the Center and one of the report authors. “But growth is going to moderate in the relatively near future as a limited supply of workers will put a check on the region’s expansion.”
According to both Kleinhenz and Thornberg, there is a critical need to address California’s high housing costs and its labor shortages across skill levels in order to ensure healthy economic growth in the Inland Empire and beyond. The new forecast delivers current outlooks for the U.S., California, and Inland Empire economies.
 
Select Key Findings:
  • The jobs forecast in the Inland Empire calls for continued gains, with total nonfarm employment expected to grow between 2.5% and 3.0% in the near term, while the unemployment rate will drop to less than 4% in 2019.
  • The Inland Empire’s renowned Logistics industry is the region’s most improved, having nearly doubled in size over the past decade and with employment 90% above its pre-recession peak. The effects from the current trade tariffs, however, are yet to be seen.
  • The region has also enjoyed gains elsewhere, notably in Construction, Health Care, and Retail Trade, responding to continued growth in the region’s population and business activity.
  • As of the second quarter of 2018, the median nominal price of an existing single-family home in San Bernardino County was 17.2% below its pre-recession peak, while in Riverside County it was 9.7% less. If current trends continue, the forecast has nominal home prices in the region surpassing their pre-recession peak in 2020.
  • Growth in the U.S. economy looks solid for the rest of this year but will slow in 2019. Additionally, while there is no reason to expect a recession anytime soon, the long term stressors of heavy Federal borrowing, rising interest rates, and policy uncertainties, substantially diminish the nation’s capacity to absorb a blow to its economy; it won’t take much to end the current expansion.
  • High housing costs will impede California’s economic growth over the long-term to the extent they deter the state’s labor force from expanding. California’s labor force growth rate has slowed significantly since the fall of 2017, with year-to-year growth at just 0.2% as of July 2018.
The 9th annual Inland Empire Economic Forecast Conference is being held on October 11th at the Fox Performing Arts Center in Riverside, CA. In addition to forecasts for the nation, state, and region, the event includes a drilled down outlook for commercial real estate markets in the Inland Empire, illuminating current and future trends in retail, office, and industrial properties.
 
An embargoed copy of the forecast book can be downloaded in its entirety here. To attend the event, please contact Victoria Pike Bond (see above) for a press pass. 
 
The UC Riverside School of Business Center for Economic Forecasting and Development is the first major university forecasting center in Inland Southern California. The Center is dedicated to economic forecasting and policy research focused on the region, state, and nation. Learn more at UCREconomicForecast.org

The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.

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Career & Workplace

The City of Rancho Cucamonga Recognized as U.S. Best-in-Class Employer by Gallagher 

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Gallagher’s Best-in-Class Benchmarking Analysis Identifies U.S. Organizations That Excel in Optimizing Employee and Organizational Wellbeing 

The City of Rancho Cucamonga participated in Gallagher’s 2023 U.S. Benefits Strategy & Benchmarking Survey and was identified as an organization that excelled in implementing successful strategies for managing people and programs. The City of Rancho Cucamonga was recognized for its comprehensive framework for strategically investing in benefits, compensation and employee communication to support the health, financial security and career growth of its employees at a sustainable cost structure. 

Designations like Gallagher’s Best-in-Class Employer help current and potential employees understand and appreciate an organization’s workplace culture and people strategy; important differentiators as employers compete for talent in today’s labor market. 

“This award is a testament to the collective dedication and unwavering commitment of our team, reflecting the high standards we uphold in fostering a workplace that thrives on innovation, belonging, and employee well-being.” Robert Neiuber, Senior Human Resources Director, City of Rancho Cucamonga. 

A U.S. Best-in-Class Employer, the City of Rancho Cucamonga was assigned points based on its relative performance in: 

  • Plan horizons for benefits and compensation strategies 
  • Extent of the wellbeing strategy 
  • Turnover rate for full-time equivalents (FTEs) 
  • Completion of a workforce engagement survey 
  • Use of an HR technology strategy and its level of sophistication 
  • Difference in healthcare costs over the prior year 
  • Use of a communication strategy 

The City of Rancho Cucamonga understands that high employee expectations haven’t budged in the changing labor market and have regularly examined their formula to attract and retain talent,” said William F. Ziebell, CEO of Gallagher’s Benefits & HR Consulting Division. “In doing so, the City of Rancho Cucamonga utilizes data, workforce feedback tools and clearly defined policies to provide competitive benefits and experiences that their employees value.” 

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Career & Workplace

California Labor Market Closes out 2023 with Modest Growth, but Expect Adjustments when Annual Revision Hits in March

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State’s Workforce Contracts Again; Unemployment Rate Ticks Up

California’s labor market grew modestly in the latest numbers, according to an analysis released today by Beacon Economics. Total nonfarm employment in the state expanded by just 23,400 positions in December, however, the sum of California’s metropolitan areas showed a more robust increase of 55,100 positions. November’s gains were revised down to 8,100 in the latest numbers, a 1,200 decrease from the preliminary estimate of 9,300.

“Although job and labor force growth has been muted, we caution against reading too much into these figures because this is the last release before the annual benchmark revisions in March,” said Justin Niakamal, Research Manager at Beacon Economics.

As of December 2023, California had recovered all of the jobs that were lost in March and April 2020, and there are now 508,100 more people employed in California compared to pre-pandemic February 2020. Total nonfarm employment in the state has grown 2.9% since that time compared to a 3.2% increase nationally. California increased payrolls by 1.7% from December 2022 to December 2023, matching the 1.7% increase nationally over the same period.

California’s unemployment rate rose to 5.1% in December 2023, up 0.2 percentage points from the previous month. The state’s unemployment rate remains elevated relative to the 3.7% rate in the United States overall. California is continuing to struggle with its labor supply, which fell by 3,600 in December. Since February 2020, the state’s labor force has fallen by 243,800 workers, a 1.2% decline. 

Industry Profile  

  • At the industry level, gains were mixed. Healthcare led payroll gains in December, with payrolls expanding by 9,100, an increase of 0.3% on a month-over-month basis. With these gains Healthcare payrolls are now 10.8% above their pre-pandemic peak.
  • Government was the next best performing sector, adding 8,100 jobs, a month-over-month increase of 0.3%. However, with these gains Government payrolls are still 0.3%, or 28,400 jobs, below their pre-pandemic peak.
  • Other sectors posting strong gains during the month were Leisure and Hospitality (7,100 or 0.3%), Education (4,100 or 1.0%), Manufacturing (2,600 or 0.2%), Other Services (1,300 or 0.2%), Wholesale Trade (1,200 or 0.2%), Retail Trade (1,100 or 0.1%), and Real Estate (1,100 or 0.4%).
  • Payrolls decreased in a handful of sectors in December. Transportation, Warehousing, and Utilities experienced the largest payroll declines, with payrolls falling by 4,400, a decline of 0.5% on a month-over-month basis. Other sectors posting declines during the month were Administrative Support (-4,100 or -0.4%), Finance and Insurance (-2,200 or -0.4%), Information (-1,900 or -0.3%), Management (-400 or -0.2%), and Mining and Logging (-200 or -1.0%).

Regional Profile

  • Regionally, job gains were led by Southern California. The Los Angeles County (MD) saw the largest increase, where payrolls grew by 17,800 (04%) during the month. Orange County (6,800 or 0.4%), the Inland Empire (6,400 or 0.4%), San Diego (5,500 or 0.3%), Ventura (500 or 0.2%), and El Centro (200 or 0.3%) also saw their payrolls jump. Over the past year, Ventura (2.6%) experienced the fastest job growth in the region, followed by Orange County (2.1%), Los Angeles (MD) (2.1%), the Inland Empire (1.9%), El Centro (1.9%), and San Diego (1.5%).
  • In the Bay Area, San Francisco (MD) (6,500 or 0.5%) had the largest increase during the month. San Jose (3,000 or 0.3%), Napa (400 or 0.5%, Santa Rosa (400 or 0.2%), and San Rafael (MD) (200 or 0.2%) also saw payrolls expand. Over the past 12 months, Santa Rosa (2.9%) has enjoyed the fastest job growth in the region, followed by San Rafael (MD) (2.4%), the East Bay (1.9%), San Francisco (MD) (1.3%), Vallejo (1.3%), San Jose (1.1%), and Napa (0.8%).
  • In the Central Valley, Sacramento experienced the largest monthly increase as payrolls expanded by 2,400 (0.2%) positions in December. Payrolls in Fresno (1,500 or 0.4%), Merced (600 or 0.9%), Modesto (600 or 0.3%), Madera (300 or 0.7%), Redding (200 or 0.3%), and Yuba (200 or 0.4%) also saw their payrolls jump during the month. Over the past year, Sacramento (2.8%) enjoyed the fastest growth, followed by Yuba (2.7%), Modesto (2.7%), Hanford (2.4%), Fresno (2.2%), Visalia (1.9%), Bakersfield (1.1%), Stockton (0.6%), Madera (0.5%), Chico (0.3%), Merced (-0.3%), and Redding (-1.6%).
  • On California’s Central Coast, Santa Barbara (900 or 0.4%) added the largest number of jobs. Santa Cruz (500 or 0.5%) and San Luis Obispo (400 or 0.3%) also saw payrolls increase during the month. From December 2022 to December 2023, Salinas (4.61%) added jobs at the fastest rate, followed by Santa Barbara (3.4%), San Luis Obispo (2.7%), and Santa Cruz (2.4%).
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Business

The Inland Empire Regional Chamber of Commerce Announces the 2024 Human Resources Conference, led by Atkinson, Andelson, Loya, Rudd & Romo (AALRR)

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Uniting Leaders, Shaping Futures: Charting the Next Course in Human Resources

The Inland Empire Regional Chamber of Commerce, in partnership with Insight HR Consulting and presented by Atkinson, Andelson, Loya, Ruud & Romo (AALRR), announces the much-anticipated 2024 Human Resources Conference. Scheduled for February 15th, 2024, at the Jessie Turner Center, this event is set to be a landmark gathering for HR and business leaders.

Event Details:

  • Date: February 15th, 2024
  • Venue: Jessie Turner Center, [Full Address]
  • Title: 2024 2nd Annual Inland Empire HR Summit: Shaping the Future of Human Resources

The conference is hosted by The Inland Empire Regional Chamber of Commerce, in partnership with Insight HR Consulting. AALRR, a leading full-service law firm, is the presenting sponsor, bringing their extensive legal expertise in employment and labor to the forefront of the event.

“We are thrilled to sponsor and present at the upcoming 2024 Human Resources Conference,” said Amber Solano, AALRR’s Private Labor and Employment Law Practice Group Chair. “With all of the recent changes in the law, we feel this is going to be a valuable event for human resource and business leaders throughout the region.”

The conference offers an invaluable platform for professionals to engage with evolving trends and innovations in HR, preparing them to lead in the changing world of work.

Special Highlights:

  • Renowned HR thought leaders as keynote speakers.
  • Networking opportunities with industry experts and peers.
  • A special focus session by AALRR on the evolving legal landscape in human resources.

“The Inland Empire Regional Chamber of Commerce is proud to collaborate with Insight HR consulting and leading speakers AALRR.  This partnership strengthens our commitment to delivering a conference that truly impacts the HR and Business community.” said Edward Ornelas, Jr., CEO.

For the event schedule, registration, and sponsorship details, please visit hr.iechamber.org

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