California, August 22, 2025
News Summary
California is facing a slowdown in job growth with 9 out of 15 major employment sectors in Southern California reporting workforce reductions. The total employed workforce has seen only a modest increase of 55,000 jobs, which is significantly below historical averages. Factors such as economic uncertainties and new policies from the administration have contributed to this decline, with many sectors struggling despite some growth in healthcare and government roles.
California is experiencing a notable slowdown in job growth as economic uncertainties challenge local businesses and the workforce. According to recent data, of the 15 major employment sectors in Southern California, 9 have reduced their workforce in the past year, while only 6 have managed to grow their payrolls at rates surpassing historical patterns. This development paints a bleak picture of the region’s economic landscape.
As of July, the total employed workforce in Los Angeles, Orange, Riverside, and San Bernardino counties stands at 7.95 million, reflecting a modest increase of 55,000 jobs from the previous year. However, the current job creation rate is a worrying 47% below the average annual growth of 104,300 jobs recorded since 2010. This stark decrease in job growth signals a significant shift in the employment climate.
The slowing job growth can be attributed to a combination of factors, including economic uncertainties brought on by recent policies from the new administration. These factors have led to a decrease in both consumer and corporate confidence, affecting hiring practices across various industries.
Employment Sector Performance
In the past year, expanding industries have added a total of 120,700 workers, while sectors that contracted saw a loss of 65,600 jobs. The sectors facing the most significant job cuts include:
- Manufacturing: Down 18,100 jobs, now totaling 544,500 workers, which surpasses the historical annual declines of 5,100.
- Construction: Lost 16,400 jobs, bringing the total to 362,600, well below the typical growth rate of 8,600.
- Professional and Business Services: Experienced a decrease of 9,500 jobs, with 1.12 million workers remaining, which is also lower than historical average growth of 15,300.
- Financial Services: Reduced by 8,700 jobs, leaving 48,100 workers, falling short of a historical decline of 500.
- Fast-Food Restaurants: Saw a drop of 6,800 jobs, totaling 46,900, below historical growth of 8,300.
- Logistics and Utilities: Decreased by 2,400 jobs to a total of 794,300, failing to meet a historical increase of 14,700.
- Personal Services: Down 1,700 jobs, leaving 265,700 workers, below the historical growth of 3,100.
- Retailing: Experienced a reduction of 1,400 jobs, totaling 718,600, lacking the past growth of 2,800.
- Full-Service Eateries: Concluded a decline of 600 jobs, remaining at 33,100 workers, below a historical increase of 4,700.
On the other hand, several sectors are still witnessing growth, which includes:
- Healthcare: Increased by 39,500 jobs to 871,100 workers, significantly exceeding historical growth of 19,700.
- Social Assistance: Added 36,500 jobs, bringing the total to 542,900, far surpassing the historical rate of 17,800.
- Government: Gained 18,400 jobs to reach 996,300, exceeding previous growth of 4,900.
- Private Education: Increased by 15,400 jobs to 200,900, outpacing historical growth of 4,700.
- Hotels and Recreation: Added 6,000 jobs, totaling 284,500, surpassing historical growth of 5,700.
- Information Technology: Increased by 4,900 jobs to 223,100, reversing the historical trend of declines.
Conclusion
The report underscores a concerning trend in Southern California where job growth is lagging behind historic averages, raising challenges for local businesses and the job market. The combination of economic pressures and uncertainties appears to complicate hiring efforts, leaving many sectors struggling amidst an unstable economic backdrop.
FAQ
What is the current job growth rate in Southern California?
The current job creation rate in Southern California is 47% below the average of 104,300 annual job growth since 2010.
Which sectors are experiencing job cuts?
Nine sectors, including manufacturing, construction, and professional services, have experienced job cuts in the past year, totaling tens of thousands of lost positions.
Are there sectors that are still growing?
Yes, sectors including healthcare, social assistance, and government have shown growth, adding thousands of jobs despite broader declines in other areas.
What factors are contributing to job growth slowing in the region?
The slowdown is largely attributed to economic uncertainty stemming from new policies, which have decreased consumer and corporate confidence.
Key Features
| Sector | Jobs Added | Jobs Cut |
|---|---|---|
| Healthcare | 39,500 | N/A |
| Manufacturing | N/A | 18,100 |
| Construction | N/A | 16,400 |
| Social Assistance | 36,500 | N/A |
| Professional and Business Services | N/A | 9,500 |
| Government | 18,400 | N/A |
Deeper Dive: News & Info About This Topic
- OC Register: Job Cuts in Southern California
- OC Register: Job Creation Rates
- Los Angeles Times: FEMA Job Openings
- Encyclopedia Britannica: California
- Google Search: Southern California Job Market
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange 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 Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
