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Construction, manufacturing and professional services continued to lose jobs while health care added workers, and a shrinking labor force contributed to the region's lower unemployment rate.
REDLANDS, Calif. — The Inland Empire's unemployment rate fell to 4.6% in May, down from a revised 4.9% in April and below the 4.9% recorded a year ago, according to new data released by the California Employment Development Department.
The Riverside–San Bernardino–Ontario metropolitan area’s rate remained below California’s 4.7% unemployment rate but above the national rate of 4.1%.
The decline comes as the number of unemployed residents dropped to 101,500, down from 107,800 in April.
Total nonfarm employment in Riverside and San Bernardino counties fell by 3,600 jobs in May, bringing regional employment to about 1.72 million.
Job losses in May were concentrated in professional and business services, which shed 1,800 positions. Declines were led by professional, scientific and technical services and administrative and support services.
Private education and health services lost 1,100 jobs, driven by declines in private educational services. Health care and social assistance employment was unchanged.
Other sectors posting monthly losses included information (-700 jobs), trade, transportation and utilities (-500), other services (-200), and leisure and hospitality (-100).
At the same time, several sectors posted modest gains. Government added 400 jobs, led by local government hiring, though those gains were partially offset by small losses at the state level. Construction added 300 jobs, and manufacturing added 100 jobs. Agriculture also grew, adding 1,400 jobs.
While some sectors showed monthly improvement, longer-term trends continue to highlight a downturn in key industries.
Construction recorded the region’s largest annual job loss, down 6,100 positions from May 2025. Specialty trade contractors accounted for the majority of those losses, followed by declines in building construction.
Manufacturing employment fell by 3,900 jobs over the year, and Professional and business services also weakened significantly, down 5,100 jobs year over year, with administrative and support services accounting for most of the losses.
Government employment also declined over the year, falling by 3,000 jobs.
Despite broader softness, health care remains the Inland Empire’s strongest and most consistent source of job growth.
Private education and health services added 17,600 jobs over the past year, with nearly all gains coming from health care and social assistance, which increased by 17,400 positions.
Within the sector, hospitals grew employment by 6.8% year over year, while ambulatory health care services rose 3.4%.
The Inland Empire labor force totaled 2.19 million in May, a 1.9% decline from a year earlier. Civilian employment also fell by 1.6% over the same period.
The number of unemployed residents declined 7.6% from a year ago. However, because the labor force also shrank, part of that decline reflects fewer people being counted as unemployed after they stopped actively looking for work. People who are not working and not seeking employment are not included in the unemployment rate.
California’s unemployment rate stood at 4.7% in May, while the national rate was 4.1%.
The Inland Empire’s 4.6% rate remained slightly below the state average but above the national figure, reflecting a regional economy still balancing strong health care growth against ongoing weakness in construction, manufacturing and professional services.
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