Healthcare, restaurants and construction continue hiring, but manufacturing, Hollywood and other higher-paying industries are still shrinking, creating a mixed picture for many Los Angeles families.
Los Angeles County added 9,000 jobs in May, according to the latest Employment Development Department report. At first glance, that sounds like welcome news for workers looking for a job.
But the numbers tell a more complicated story.
While employers are hiring in healthcare, restaurants, hotels and construction, many of the industries that have historically offered stable, middle-income careers continue to lose jobs. Manufacturing, Hollywood, transportation, finance and professional services all posted annual declines. At the same time, fewer people are participating in the labor force than just one month earlier.
For many California families, especially in Los Angeles, that helps explain why the economy may not feel as strong as the headline suggests.
The economy is growing, but not across all segments
The county’s unemployment rate held steady at 5.5 percent in May. Payroll employment increased, but Los Angeles still has 3,900 fewer jobs than it did one year ago.
Even more telling, the labor force shrank by roughly 18,000 people during the month. The report does not explain why, but a declining labor force can reflect retirements, caregiving responsibilities, people moving away, or workers who have stopped actively looking for a job.
That means job growth alone does not tell the full story.
Where the jobs are growing
Healthcare continues to be the biggest success story in the Los Angeles economy.
Health care and social assistance added 25,500 jobs over the past year, making it the fastest-growing major employment sector in the county. Individual and family services alone added 18,000 jobs, reflecting continued demand for caregivers, home health workers, behavioral health services and community support programs.
Restaurants, hotels and other hospitality businesses also continue expanding. Leisure and hospitality added 6,300 jobs in May, while restaurants and food services gained another 3,000 jobs.
Construction added 2,300 jobs during the month, suggesting demand remains steady despite higher interest rates and a slower housing market. This has much to do with the construction demand created by the LA fires.
For workers looking to change careers, these industries currently offer some of the strongest opportunities.
Where jobs continue disappearing
The biggest concern is where the losses are occurring.
Manufacturing lost 8,000 jobs over the past year, including thousands in apparel manufacturing and garment production. Those industries have long provided stable employment for many working-class families across Los Angeles.
Hollywood also remains under pressure.
Although motion picture and sound recording employment rebounded slightly in May, the industry is still down 6,700 jobs compared with one year ago, showing the entertainment sector has not fully recovered.
Professional and business services, finance, transportation and government also reported fewer jobs than last year.
These sectors often offer higher wages, stronger benefits and more opportunities for long-term career advancement than many service occupations.
This report does not include employment data by race or ethnicity, so it cannot say how Latino workers were affected specifically.
However, many of the industries showing the strongest hiring, including healthcare support, restaurants, hospitality, construction and social services, employ large numbers of Latino workers throughout Los Angeles County.
At the same time, manufacturing, apparel production and parts of the entertainment industry have also been important employers for Latino communities for decades.
That means many families may see new job opportunities while others face layoffs, reduced hours or fewer openings in the industries where they built their careers.
For Latino-owned small businesses, the picture is equally mixed. Companies serving hospitals, restaurants and construction firms could benefit from continued hiring, while businesses tied to manufacturing, logistics or entertainment may continue facing slower demand.
What the report doesn’t answer
The Employment Development Department provides valuable information about where jobs are being created and lost, but several important questions remain unanswered.
The report does not show whether the new jobs are full-time or part-time, how much they pay, whether they include benefits or whether wages are keeping up with the cost of living in Los Angeles.
It also does not show how many workers are taking multiple jobs to make ends meet or whether employees leaving manufacturing are successfully moving into healthcare or other growing industries.
Those answers will determine whether today’s job growth translates into greater financial security for California families.
Highlights
- Los Angeles added 9,000 jobs in May.
- The county still has 3,900 fewer jobs than one year ago.
- Healthcare remains the fastest-growing major employer.
- Restaurants, hotels and construction continue hiring.
- Manufacturing, Hollywood, finance and transportation continue losing jobs.
- The labor force is shrinking, suggesting not everyone is benefiting from the recovery.
The coming months will help determine whether May’s hiring represents the beginning of broader economic growth or simply seasonal gains concentrated in a handful of industries.
For workers considering a career change, healthcare, caregiving, hospitality and construction currently appear to offer the strongest opportunities. But policymakers and employers will also be watching whether Los Angeles can rebuild higher-paying industries that have traditionally helped families achieve long-term economic stability.
For many Angelenos, the challenge is no longer finding any job. It is finding a job that pays enough to keep up with rising housing costs, groceries, transportation and the high cost of living across Southern California.
FAQ
Why did Los Angeles add jobs but still have fewer jobs than last year?
Because monthly job gains have not fully offset employment losses over the previous 12 months. Los Angeles still has about 3,900 fewer nonfarm jobs than it did a year ago.
Which industries are hiring in Los Angeles?
Healthcare, social assistance, restaurants, hotels, hospitality and construction showed the strongest job growth in the latest report.
Which industries are losing jobs?
Manufacturing, apparel, Hollywood, transportation, finance and professional services all reported fewer jobs than one year ago.
Why is the labor force shrinking?
The report does not provide a reason. A smaller labor force can reflect retirements, caregiving responsibilities, migration or workers who have stopped actively looking for employment.
Where can job seekers find help?
Job seekers can explore career training, apprenticeships and job placement services through California’s Employment Development Department, local America’s Job Centers of California, Los Angeles County workforce development programs and community colleges offering healthcare and skilled trades training.
