Inland Empire unemployment rises in June as government sheds jobs

The region's unemployment rate increased to 5.3% in June as government employment declined, though health care remained a bright spot and total employment was still higher than a year ago.

Inland Empire unemployment rises in June as government sheds jobs
(Photo credit: skynesher)

REDLANDS, Calif. — The Inland Empire's unemployment rate rose to 5.3% in June, up from a revised 4.6% in May, as government payrolls shrank and overall employment declined, according to new data from the California Employment Development Department.

The Riverside–San Bernardino–Ontario metropolitan area's unemployment rate remained below the 5.7% recorded a year earlier but was slightly higher than California's 5.2% rate and the national rate of 4.4%. Riverside County posted a 5.4% unemployment rate while San Bernardino County came in at 5.2%.

The number of unemployed residents climbed to 116,500 in June, up from 101,800 in May, even as the region's labor force continued to shrink.

Government drives monthly job losses

Government posted the largest monthly decline, losing 1,800 jobs. Local government accounted for most of those losses, shedding 1,600 positions, while state government lost 200 jobs. Federal government employment was unchanged.

Leisure and hospitality also lost 500 jobs during the month.

Despite the overall decline, several industries added workers. Construction gained 600 jobs, led by specialty trade contractors, while manufacturing added 400 jobs and agriculture gained 600 positions. Private education and health services also added 800 jobs, driven by an increase of 1,500 positions in health care and social assistance that was partially offset by a loss of 700 jobs in private educational services.

Health care continues to fuel annual job growth

Although employment changed little from May to June, the Inland Empire still had 11,100 more nonfarm jobs than it did a year ago.

Private education and health services remained the region's strongest source of growth, adding 23,800 jobs over the past year. Health care and social assistance accounted for 21,500 of those gains, while trade, transportation and utilities added another 2,300 jobs.

Within health care, hospital employment increased 7.4% compared with June 2025, while ambulatory health care services grew 4%.

Construction, government and manufacturing remain weak

Not all industries shared in the region's annual gains.

Construction recorded the largest year-over-year loss, down 5,300 jobs, with specialty trade contractors accounting for most of the decline. Government employment fell by 3,600 jobs, led primarily by reductions in federal employment. Manufacturing lost 3,300 jobs, while professional and business services shed 2,600 positions.

Labor force continues to shrink

The Inland Empire's civilian labor force totaled 2.19 million people in June, down 1.9% from a year earlier. Civilian employment also declined 1.4% over the same period.

While the number of unemployed residents increased from May to June, it remained 9.3% lower than a year earlier. The continued decline in the labor force suggests fewer people are actively participating in the job market than they were a year ago.

State and national comparisons

California's unemployment rate stood at 5.2% in June while the national rate measured 4.4%.

The Inland Empire's unemployment rate was slightly higher than the statewide average, reflecting a regional economy where strong hiring in health care continues to offset ongoing weakness in construction, manufacturing and government employment.

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