Los Angeles County’s job market demonstrated its resilience in October as employers added 52,000 jobs to their payrolls, propelling the total job count to 4.7 million, according to state figures released on November 17th. This surge in job creation indicates the county’s robust economic recovery and marks a significant milestone. However, the good news is tempered by a slight uptick in the unemployment rate, which climbed from 5.1 percent in September to 5.2 percent in October, breaking the year-long stability trend.
The contrasting trends in job creation and unemployment can be partially attributed to the recent Hollywood strikes, which disrupted the entertainment industry throughout October before being resolved earlier this month. Traditionally, many individuals working in this sector are not included on employer payrolls. As a result, more residents reported themselves as unemployed in household surveys, causing a dip in the civilian employment figure, which decreased by 10,000, landing at 4.76 million, according to a report in the Los Angeles Business Journal.
On the other hand, the payroll jobs data from employers across various sectors painted a more optimistic picture. Nearly every sector of the local economy reported net job additions in October. Leading the way was the education sector, which added 16,000 jobs. Much of this surge is seasonal, as educational institutions finalize their staffing for the academic year.
When adjusting for seasonal factors, the county still saw a net gain of 11,000 jobs. Other notable sectors experiencing job gains in October include health care and social assistance, up by 9,200 jobs, and professional and business services, which added 7,000 jobs.
In October, no major sector of the local economy experienced significant job losses, signaling the overall stability and resilience of the job market.
Over the past 12 months ending in October, employers in L.A. County created a net 75,000 jobs, representing a growth rate of approximately 1.6 percent. The standout sectors during this period were health care and social assistance, with an increase of 26,900 jobs, and eating/drinking places, which added 20,700 jobs.
Conversely, the motion picture/sound recording industry took a hit due to the strikes that disrupted the sector this year, losing a net 27,800 jobs. The manufacturing sector continued its gradual decline, shedding 3,500 jobs over the same 12-month period ending in October.
Shifting our focus to the unemployment side of the equation, L.A. County’s October unemployment rate of 5.2 percent represents a modest uptick from September’s 5.1 percent. It also marks an increase from the 4.7 percent rate recorded last year. The county’s unemployment rate now exceeds both the statewide average for October of 4.8 percent and the nationwide average of 3.9 percent, signaling the challenges faced by the local labor market.
The Employment Development Department also provides data on city-specific unemployment rates, although these figures are not seasonally adjusted. Among the county’s largest cities, Los Angeles and Long Beach reported unemployment rates of 5.3 percent and 4.7 percent, respectively, in October. Of cities with labor forces exceeding 10,000, Lomita recorded the lowest unemployment rate at 2.0 percent, while Burbank recorded the highest rate at 7.4 percent. Burbank’s elevated unemployment rate can be attributed in part to the entertainment industry’s production shutdowns during the strikes, since the city is home to entertainment giant Walt Disney Co. and several other studio lots affected by the labor disputes.
