A very significant data release
Long-time readers know that I track a few of my own metrics on this newsletter. I have my own real estate indicator, and I always make a point to track earnings growth alongside jobs, even when others are not talking about it as much (note that this isn’t always true – Jonathan Lansner had a great article on earnings, including real earnings, the other day in the local papers).
Another metric I’ve tracked is employment relative to pre-pandemic trend. I know most of you have read this before, but it’s very important to me that we consider whether jobs in the region have returned to the pace they were at prior to March 2020. At a time when many other metro areas haven’t even recovered all the jobs they lost during the pandemic, it might sound like a lot to ask. But I think it’s important for our sense of normalcy.
I am pleased to share the chart below, which shows that the Inland Empire has now indeed returned to pre-pandemic trend. Not only have we recovered all jobs lost, but we are now at the point we would have been if the pandemic had never happened.
Overall annual job growth was 5.4% in October, with gains in all the major sectors: trade, transportation, and utilities (6.3%), Financial activities (4.7%), Professional and Business Services (6.9%).
It’s always important to compare what’s actually happening in the labor market to what the headlines tell you. In the past week alone, I’ve seen so many doomsday headlines – this or that pundit or “expert” calling another deep recession – that it’s important to stay grounded. In this regard, I hope this newsletter has been an important resource for you.