Southern California’s 45-month job creation streak is over

Southern California had 21,800 fewer jobs in January compared to 12 months earlier, the first yearly employment dip after a 45-month upswing following pandemic business restrictions.

My trusty spreadsheet, filled with newly revised state job figures, found 7.94 million people at work in January in Los Angeles, Orange, Riverside and San Bernardino counties. These job counts are not adjusted for seasonal swings.

That four-county staffing was down 0.3% in 12 months. You must go back to March 2021 to see the last decline in local employment on a year-over-year basis.

January’s drop was a rough start to 2025 for workers.

Yes, there’s the expected seasonal loss of work as temporary holiday gigs end. However, the 169,600 decline from December was 27% higher than January’s average dip since 2011.

Bosses grew cautious on staffing as the year began. Consumers and corporations are being thrifty about spending as inflation and interest rates remain stubbornly high. Also, there is increased uncertainty with Donald Trump returning to the White House.

And some job losses might be tied to the Los Angeles wildfires. The economic hit will be better reflected in February job stats.

January’s employment dip also boosted regional joblessness. The four-county unemployment rate was 5.4% in January compared with 5.2% in December and a year earlier.

Regional differences

Here’s how the job market performed in the region’s key metropolitan areas …

Los Angeles County: 4.56 million workers after dropping 99,500 in a month and declining by 13,900 in a year. First 12-month drop in 13 months. Unemployment? 5.8% vs. 5.7% a month earlier and 5.3% a year ago.

Inland Empire: 1.7 million workers, after dropping 39,700 in a month but growing by 2,500 in a year. – 46th consecutive 12-month increase. Unemployment? 5.3% vs. 4.9% a month earlier and 5.2% a year ago.

Orange County: 1.68 million workers after dropping 30,400 in a month and declining by 10,400 in a year. First 12-month drop in 45 months. Unemployment? 4.1% vs. 3.7% a month earlier and 3.9% a year ago.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com