Southern California, August 22, 2025
News Summary
Job growth in Southern California has drastically slowed, with nine out of 15 employment sectors losing jobs over the past year. Despite 7.95 million workers being employed across the region, job creation is 47% below historical averages, presenting challenges in the labor market. While sectors like healthcare and social assistance saw significant growth, manufacturing and construction experienced the most notable job cuts, raising concerns about the overall economic climate and hiring confidence.
Southern California
Job growth in Southern California has significantly slowed down, with recent data showing that of the 15 major employment sectors, nine have shed jobs over the past year. As economic uncertainties persist, only six sectors managed to grow their payrolls at a rate above historical averages, according to the latest employment report.
As of July 2023, 7.95 million workers are employed across Los Angeles, Orange, Riverside, and San Bernardino counties, reflecting a year-over-year increase of just 55,000 jobs. This current pace of job creation is substantially 47% below the average annual growth rate of 104,300 jobs observed since 2010, underscoring a cooling labor market.
The slowdown in job growth is attributed to economic uncertainties stemming from new administration policies, causing both consumer and corporate confidence to waver. This cautious hiring landscape complicates efforts to boost job creation across the region.
Sectors Experiencing Job Cuts
Several sectors have experienced notable job losses over the past year. The manufacturing sector alone has seen a reduction of 18,100 jobs, leaving 544,500 workers in the field, which far exceeds the historical decline rate of approximately 5,100 jobs. The construction industry has similarly faced challenges, losing 16,400 jobs and bringing its total workforce down to 362,600, significantly below its historical growth of 8,600.
- Professional and Business Services: Down 9,500 jobs to 1.12 million workers, lagging behind historical growth of 15,300.
- Financial Services: Saw a decrease of 8,700 jobs, totaling 48,100 workers, which is below the typical decline of 500.
- Fast-Food Restaurants: Experienced a reduction of 6,800 jobs, bringing the total to 46,900, falling short of a historical growth of 8,300.
- Logistics and Utilities: Dropped by 2,400 workers to 794,300, far below the historical increase of 14,700.
- Personal Services: Down 1,700 jobs to 265,700, not fulfilling the typical growth of 3,100.
- Retailing: Experienced a slight reduction of 1,400 jobs, totaling 718,600, which is below the historical growth average of 2,800.
- Full-Service Eateries: Down 600 positions, leaving a workforce of 33,100, below normal growth levels.
Sectors Experiencing Growth
Contrastingly, there are sectors that are thriving despite this challenging economic climate. The healthcare industry added 39,500 jobs, elevating the total to 871,100, which is substantially above the historical growth rate of 19,700. Similarly, social assistance grew by 36,500 jobs to reach 542,900, also exceeding historical growth rates.
- Government: Increased by 18,400 jobs, reaching a total of 996,300, surpassing its historical average of 4,900.
- Private Education: Added 15,400 jobs, totaling 200,900, exceeding the historical growth of 4,700.
- Hotels and Recreation: Increased by 6,000 jobs, totaling 284,500, surpassing the typical growth of 5,700.
- Information Technology: Added 4,900 jobs, bringing the total to 223,100, against historical declines of 400.
Background Context
The recent job market data reflects a concerning trend in Southern California’s jobs landscape. With the current job growth lagging behind past averages, local businesses face increasing challenges amid an uncertain economic environment. While some industries continue to thrive, the overall job creation rate indicates the need for strategic measures to enhance employment opportunities across the region.
FAQ Section
What is the current job growth rate in Southern California?
As of July 2023, job creation in Southern California is at 7.95 million workers, representing an increase of 55,000 jobs year-over-year. However, this growth rate is 47% below the historical average since 2010.
Which sectors have cut the most jobs recently?
The manufacturing, construction, and professional services sectors are among those that have cut the most jobs. Manufacturing lost 18,100 jobs, construction saw a reduction of 16,400 jobs, and professional services fell by 9,500 jobs.
Are there sectors that are still experiencing growth?
Yes, sectors such as healthcare, social assistance, and government are still experiencing growth. Healthcare added 39,500 jobs, while social assistance saw an increase of 36,500 jobs.
Key Features Chart
| Sector | Job Change | Total Employment |
|---|---|---|
| Manufacturing | -18,100 | 544,500 |
| Construction | -16,400 | 362,600 |
| Professional and Business Services | -9,500 | 1,120,000 |
| Healthcare | +39,500 | 871,100 |
| Social Assistance | +36,500 | 542,900 |
Deeper Dive: News & Info About This Topic
- OC Register: Southern California Job Cuts
- Los Angeles Times: FEMA Hiring Temporary Workers
- Reliable Plant: Manufacturing Jobs in California
- Desert Sun: Best Companies to Work for in California
- ABC7: Job Openings and Hiring in Southern California
- Wikipedia: Economy of California
- Google Search: California Job Market
- Google Scholar: California Jobs Economy
- Encyclopedia Britannica: Economy
- Google News: California Jobs
Author: STAFF HERE MISSION VIEJO WRITER
MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
