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Job Growth Declines in Southern California Amid Economic Uncertainty

An urban landscape of Southern California showing job growth and decline.

Southern California, August 22, 2025

News Summary

Southern California experiences a slowdown in job growth, adding only 55,000 jobs over the past year. Economic uncertainty has led to contractions in nine out of fifteen major sectors, while some sectors like healthcare and social assistance demonstrate growth. Current job creation is approximately 47% below historical averages, raising concerns about the region’s economic climate and future job opportunities.

Southern California

Job growth in Southern California has slowed significantly amidst ongoing economic uncertainty, with a report revealing that nine out of fifteen major employment sectors cut jobs in the past year. According to recent data, the region added only 55,000 jobs in the last twelve months, resulting in a total workforce of approximately 7.95 million across Los Angeles, Orange, Riverside, and San Bernardino counties.

As of July, current job creation in Southern California is about 47% below the historical average of 104,300 annual job growth recorded since 2010. The slowdown in hiring correlates with a rise in economic uncertainty driven by shifting administration policies, contributing to diminished consumer and corporate confidence.

Sector Performance

The job market in Southern California has seen a significant divide among various sectors. While expanding industries collectively added 120,700 jobs, contracting sectors collectively saw 65,600 job cuts over the past year. Some of the sectors that experienced job losses include:

  • Manufacturing: Down 18,100 jobs, totaling 544,500 workers, reflecting a decline beyond the historical average reduction of 5,100 jobs.
  • Construction: Lost 16,400 jobs, now totaling 362,600, significantly below the typical growth rate of 8,600.
  • Professional and Business Services: Declined by 9,500 jobs to a current total of 1.12 million, trailing behind past gains of around 15,300.
  • Financial Services: Saw an 8,700 job reduction, leaving 48,100 workers and lagging behind the historical decrease of 500.
  • Fast-Food Restaurants: Experienced a decrease of 6,800 jobs to reach 46,900, below the historical growth of 8,300.
  • Logistics and Utilities: Down 2,400 jobs, sitting at 794,300, below a historical increase of 14,700.
  • Personal Services: Declined by 1,700 jobs, totaling 265,700, underperforming against historical growth of 3,100.
  • Retailing: Contracted by 1,400 jobs to 718,600, missing the historical growth of 2,800.
  • Full-Service Eateries: Recorded a loss of 600 jobs, totaling 33,100, which falls short of historical growth of 4,700.

Industries Showing Growth

Conversely, several sectors defied the trend, demonstrating growth in the face of economic challenges:

  • Healthcare: Increased by 39,500 jobs, reaching 871,100, exceeding the historical growth average of 19,700.
  • Social Assistance: Expanded by 36,500 jobs to 542,900, surpassing the historical increase of 17,800.
  • Government: Gained 18,400 jobs, totaling 996,300, outpacing previous growth of 4,900.
  • Private Education: Added 15,400 jobs for a total of 200,900, exceeding the trend of 4,700.
  • Hotels and Recreation: Increased by 6,000 jobs to 284,500, surpassing historical growth of 5,700.
  • Information Technology: Grew by 4,900 jobs, reaching 223,100, countering historical declines of 400.

Conclusion

The latest report highlights a significant cooling in Southern California’s job market, raising concerns about the region’s economic climate. As the landscape remains cautious with myriad economic pressures, the potential for future job creation appears complex and challenging.

FAQ

What are the current employment statistics for Southern California?

As of July, approximately 7.95 million workers are employed in the region.

How much has job creation slowed in recent years?

Current job creation is at 47% below the historical average of 104,300 annual job growth since 2010.

Which sectors have seen job losses?

Job losses have occurred in manufacturing, construction, professional and business services, financial services, fast-food restaurants, logistics and utilities, personal services, retailing, and full-service eateries.

What sectors are experiencing growth?

Growth has been noted in healthcare, social assistance, government, private education, hotels and recreation, and information technology.

What factors are contributing to job growth challenges?

Economic uncertainty driven by new policies is leading to reduced consumer and corporate confidence, complicating job creation efforts.

Summary Table of Job Sector Changes

Sector Job Change Total Workers Historical Growth Comparison
Manufacturing -18,100 544,500 Exceeds historical declines
Construction -16,400 362,600 Below historical growth rate
Professional and Business Services -9,500 1.12 million Below historical growth rate
Financial Services -8,700 48,100 Trailing historical decline
Healthcare +39,500 871,100 Exceeds historical growth
Social Assistance +36,500 542,900 Surpassing historical growth

Deeper Dive: News & Info About This Topic

Job Growth Declines in Southern California Amid Economic Uncertainty

STAFF HERE CORONADO
Author: STAFF HERE CORONADO

The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.

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