12 ways virus pandemic changed SoCal’s job market
The ups-and-downs in the battle to slow the pandemic’s spread cost Southern California 829,000 jobs in a year.
New state employment figures for February revealed a mild rebound for the month but paint a bleak and divided snapshot of a local labor market hammered over 12 months. Since the first state business restrictions were issued last spring, most bosses have had to juggle changing rules and consumer preferences to keep at least some employees on the job.
Simply put, my trusty spreadsheet shows local workers witnessed a tale of two bad job markets in Los Angeles, Orange, Riverside and San Bernardino counties since February 2020.
First consider what I call Southern California’s “fun” industries — those providing everything from food to entertainment to tourism. This job niche, 9% of all local employment, has been walloped by varying levels of lockdowns. That cost 315,000 “fun” workers their jobs in a year — a mind-numbing 33% slashing of staffing.
Now look at the rest of the economy that lost 514,000 workers from what were the good ol’ days. That’s only a 7% drop — and I say “only” for comparison’s sake. Usually, a 7% job loss over 12 months would be considered a stunning decline.
Now there is some hope.
The rapid reductions in statemandated business limitations in recent weeks should cheer those seeking their old job back or new opportunities in a severely upended labor market. Here are a dozen ways the employment picture was altered by the pandemic …
NO. 1 WHO’S WORKING » Bosses added 93,000 jobs last month as state business limits continue to be eased. That’s the biggest gain since last June, when the economy was boosted by a limitations pullback. But a year later, the region’s 7.06 million employees remains 11% below the job count we saw the last time the economy wasn’t shackled by the virus.
NO. 2 WHO’S NOT WORKING » The jobless rate of 9.5% was down from 10.8% in January but nowhere near the 4.2% of February 2020. It looks even bleaker — 18.2% joblessness — after adding back in the 615,000 folks who quit the job market in a year.
NO. 3 GEOGRAPHY MATTERS »
L.A. County jobs fell 12% over 12 months due to some of the nation’s strictest lockdown rules. Orange County is off 11% as its big tourism industry suffered. And the Inland Empire lost just 6% of its workers thanks to a hot logistics industry.
NO. 4 MONTH’S HOT SECTOR » Hard-hit restaurants can now do more than takeout and delivery. Bosses added 45,900 workers in the month — the industry’s best since June. But 499,100 jobs is still off 181,600 from February 2020 — a 27% drop.
NO. 5 ALSO WARMING UP » Other “fun” business slowly brought workers back. Arts, entertainment and recreation’s 92,200 jobs represented a 7,000 increase in a month. But it’s still off 82,700 from February 2020 — down 47%. Hotel operators added 5,800 workers to 46,000 — but that’s 50,900 jobs below February 2020 — or a 53% cut.
NO. 6 YEAR’S HOT SECTOR » The pandemic’s boost to online shopping and delivery services put the transportation/warehouses job niche into hiring mode. The region’s 408,800 logistics jobs were up 28,200 over 12 months — and 7% growth would be “hot” in any economy.
NO. 7 STILL AT THE SHOPS » Retailing stumbled past economic turmoil and rapidly changing shopping habits. Local merchants had 694,200 workers last month, off 44,200 from February 2020 — a seemingly modest 6% decline.
NO. 8 COOL FOR CARE » Health and personal services’ 1.13 million jobs was up 4,800 in a month. In a period when “care” is so important, this niche is off 37,700 workers, or 3%. Business limitations, as well as consumer reluctance to personal contact, hurt.
NO. 9 FOLLOW THE MONEY » Property and banking businesses — from real estate to construction to finance — have benefited from historically cheap loan rates. Yet 473,200 jobs is still down 24,300 over 12 months, a 5% drop.
NO. 10 OFFICE WORK » The 1.05 million “business services” jobs — often good-paying, white-collar positions — can be done remotely, key in a pandemic. But staffing remains 91,900 below February 2020 as a do-morewith-less attitude leaves 8% fewer workers in the year.
NO. 11 FACTORY WORK » More demand for “made in Southern California” goods added 6,100 manufacturing workers in February. But the industry’s 540,000 jobs is off 56,400 over 12 months, or 9% below pre-pandemic employment.
NO. 12 GOVERNMENT WORK » Municipal managers face lower tax revenues and rising costs. Local, state and federal payrolls have 941,700 positions — 90,100 below February 2020, or a 9% cut.