August labor market establishment survey results
Region's job growth outpaces rest of Socal; earnings growth remains slow
On Friday, the state and metro area employment data were released for August. These statistics, based on a survey of businesses, showed that annual jobs growth in the Inland Empire was 5.7%, which compared favorably to other parts of Southern California. Link here. Los Angeles (3.2%), San Diego (4.1%), and Orange (3.6%) all grew, but at a slower pace than they had in recent months. Job growth in our region, on the other hand, has remained steady for the past six months, and was even higher before that.
These trends are why Jonathan Lansner noted in his recent article (September 16) that there are currently “regional differences” in Southern California’s labor market, with Orange and Los Angeles explaining “much of the shortfall” in job growth this month. See here for his full breakdown of the statistics.
The establishment survey release is also an excellent time to check hours and earnings data. And while the employment numbers look good for the I.E., earnings numbers do not. These statistics continue to show weakness in an otherwise healthy labor market – low unemployment (including new claims for unemployment insurance) and solid job growth. Weekly hours worked are down over the year, at 35.0 in August 2022 vs. 36.3 in August 2021. Further, average hourly earnings were up from $28.34 in August 2021 to $28.68 in August 2022, which is a disappointing 1.2% annual gain, especially considering the high inflation rates we’ve seen over the past year.
Note however that the slow wage growth is not exactly unique to the I.E., with other parts of Southern California slowing down as well.