Inland Empire unemployment rate edges down in August
Inland Empire unemployment dips to 5.6% in August as more residents find work; gains in government and health care offset losses in construction and retail.
The Inland Empire’s unemployment rate slipped slightly in August as more residents found jobs and fewer reported being out of work, according to Inland Economic Growth and Opportunity (IEGO).
The region’s seasonally adjusted unemployment rate fell to 5.6% in August, down from a revised 5.7% in July. California’s jobless rate held steady at 5.5%, while the national rate ticked up to 4.3%.
Labor force expands
More than 10,700 people joined the labor force last month, raising the total number of workers in Riverside and San Bernardino counties to 2.25 million. IEGO said the growth was fueled by 16,100 more residents reporting employment and 5,400 fewer counted as unemployed — a combination the group called a positive indicator for the regional economy.
Job gains fall just short of average
The Inland Empire added 6,400 nonfarm jobs between July and August (+0.4%). That gain came in just shy of the region’s typical August growth of 0.5% over the past four years. Nine sectors expanded payrolls, five shed jobs, and five were unchanged.
Government and health care lead hiring
Government added 4,200 jobs, mostly in local education as schools reopened. Health care and social assistance added 1,800 jobs, while administrative and support services gained 900 and accommodation and food services rose by 600.
Construction and retail lose ground
Losses were concentrated in construction (-1,200 jobs), wholesale trade (-400), retail trade (-300), and other services (-200). Transportation and warehousing added 400 jobs, surpassing its typical flat performance for August and signaling continued resilience after earlier declines this year.
Port traffic dips slightly
IEGO noted that port traffic, a key driver of the logistics sector, dipped slightly in August — down 1.3% at Long Beach and 0.2% at Los Angeles compared with a year earlier. Container volume remains higher overall for 2025, but analysts cautioned that prolonged slowdowns could dampen future job growth in warehousing and transportation.
Moderate but uneven
Overall, IEGO described August’s report as “moderate but uneven.” Government and health care hiring provided the most job opportunities, while construction and retail losses tempered momentum. With unemployment still above state and national averages, the group said the Inland Empire’s labor market remains steady but faces ongoing constraints.
"Steady labor force expansion and consistent gains across multiple industries suggest the region is laying a foundation for continued progress, provided these headwinds do not intensify," the report stated.
Redlands follows trend
According to separate figures from the California Employment Development Department, which are not seasonally adjusted, the unemployment rate in Redlands followed the regional trend with a dip in unemployment.
Zoom out: California and the nation
California added 3,800 jobs in August, accounting for 17.3% of the nation’s overall gain of 22,000 jobs — notably higher than the state’s 11.3% share of U.S. employment. The state’s unemployment rate held at 5.5% while the national rate rose by 0.1 percentage point to 4.3%.
Since April 2020, California has gained 3.09 million jobs, averaging about 48,300 per month. Year over year, the state added 69,500 jobs, though it has seen month-over-month declines in five of the past eight months.
Six of California’s 11 industry sectors posted gains in August. Private education and health services (+9,800 jobs) led the way, marking its 43rd consecutive month of growth, driven by hiring in physicians’ offices, home health care, and related fields — a trend linked in part to the state’s aging population. Leisure and hospitality (+9,300) also grew, boosted by tourism and stronger-than-expected increases in performing arts and spectator sports.
The state’s largest loss came in government (-7,600 jobs), led by a 12,300-job decline in state government. Local government added 5,800 jobs, offset somewhat by a 1,100-job decline in federal employment, including cuts at the U.S. Postal Service and the Departments of Agriculture, Veterans Affairs, and the Interior.
