According to data released on Friday, summer breaks at schools in Los Angeles, Orange, Riverside, and San Bernardino counties have led to an increase in unemployment rates.
The unemployment rate in LA County saw a slight increase in July, rising to 5.5% from the previous month’s revised rate of 5.3%, as reported by the state Employment Development Department. Comparatively, the county’s unemployment rate stood at 4.9% during the same period last year.
In July, the EDD reported an increase of 13,000 jobs in civilian employment, bringing the total to 4,767,000. However, there was also an increase in unemployment, with 9,000 positions lost, reaching a total of 275,000. During the same period, the civilian labor force grew by 22,000 positions, reaching a total of 5,042,000 between June and July.
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In July, the EDD reported that the unemployment rate in LA County stood at 6.5%.
In July 2024, the unemployment rate in California stood at 5.2%, the same as June. However, this was an increase from the 4.7% recorded in July 2023.
The national unemployment rate stood at 4.3% in July, down from 4.1% in June and significantly lower than the 3.5% recorded a year ago.
In June and July, the number of nonfarm jobs in LA County dropped by 30,800, reaching a total of 4,558,000.
According to a statement from the EDD, the largest month-over decline in government job levels, amounting to 35,000, was attributed to the academic summer recess.
Most of the seasonal job losses occurred in local government educational services, with a decrease of 33,900 positions. This includes teachers, teacher assistants, and administrative support staff. These reductions accounted for 89% of the overall decrease in the government sector.
The Information sector experienced a significant drop in employment, with a loss of 3,800 jobs, marking the second largest decline in recent months.
According to the EDD, the decline in employment can be attributed to losses in the motion picture and sound recording industry. It is worth noting that this particular industry has experienced job growth in four out of the last six months and currently accounts for 55% of the overall employment within the sector.
In July, the unemployment rate in Orange County stood at 4.4%, which was higher than the revised rate of 4% in June and the rate of 3.6% recorded in July 2023.
Total nonfarm employment in Orange County experienced a decline of 2,100 jobs from June to July, reaching a total of 1,704,900.
According to the EDD, the decrease of 9,200 jobs during the season was mainly attributed to job losses in Orange County’s local government sector. The majority of the decline, amounting to 8,400 jobs, was a result of the summer recess. Additionally, the state government reduced its workforce by 1,000 jobs, while the federal government saw a modest increase of 200 jobs.
From July 2023 to July 2024, Orange County experienced a growth of 31,100 jobs, which amounted to a 1.9% increase in total nonfarm employment.
The jobless rate in the Riverside-San Bernardino-Ontario metropolitan area of the Inland Empire increased to 5.8% in July, compared to a revised 5.3% in June and a higher rate of 4.9% in July 2023. According to EDD figures, Riverside County reported a 5.9% unemployment rate, while San Bernardino County had a rate of 5.7%.
In June and July, the number of nonfarm jobs decreased by 12,600, bringing the total to 1,692,400. The agricultural sector also experienced a decline, with 1,500 fewer jobs.
According to data from the EDD, the Inland Empire experienced the highest job losses, with governments losing a total of 18,000 positions. Specifically, local government jobs saw a decline of 17,800, while state government jobs decreased by 300. On the other hand, the federal government added 100 positions in the area.
The Inland Empire experienced a decline of 300 manufacturing jobs, while the leisure and hospitality sector saw a decrease of 100 positions within the same period.
In July 2023, there was a noticeable increase in nonfarm employment, with a rise of 34,200 jobs or 2.1%. The agricultural sector also experienced growth, adding a total of 300 jobs, which represents a 2.2% increase.
