Los Angeles County saw job gains in May, likely driven in part by rebuilding after the January 2025 wildfires, which destroyed or damaged more than 18,000 structures.<\/p>\n
Construction added 2,300 jobs since April, while postings for new jobs in the industry jumped 45% over a year ago \u2014indicating rebuilding in Pacific Palisades, Altadena and nearby is helping boost the local economy, according to a report by the Los Angeles County Economic Development Corp.<\/a><\/p>\n \u201cThis is consistent with the possibility that wildfire rebuilding activity is increasing construction labor demand in the area,\u201d Max Chomas, an economist at the LAEDC Institute for Applied Economics, said at a presentation this week based on California Employment Development Department<\/a> and other data.<\/p>\n Motion picture and sound recordings also added 2,800 jobs during the month, despite a deep downturn in Hollywood<\/a> caused by a reduction in streaming filming, runaway production and other factors. The industry lost 6,700 jobs compared with a year ago.<\/p>\n Still, the job growth since April in construction and Hollywood were among the highlights of a month that saw total county payroll jobs \u2014 excluding agriculture and certain other sectors \u2014 grow by 9,000 jobs, to 4,618,400. Employment was virtually flat from the same time a year ago.<\/p>\n \u201cMay was a relatively good month for employment growth,\u201d Chomas said.<\/p>\n The biggest monthly job gainers were the hotel and restaurant industries, which added 3,700 jobs.<\/p>\n Manufacturing, which has been hit by job losses over recent years, added 400 jobs since April. It also saw a 15% increase in job postings compared with a year ago.<\/p>\n That could reflect the resurgence in Southern California\u2019s aerospace and defense industries, which have seen a sharp rise in startups<\/a>.<\/p>\n Postings for all new jobs were up 1,134, or 2.4%, since a year ago. Chomas noted that May was only one of five months over the last three years that saw year-over-year growth in job postings.<\/p>\n The gains helped stabilize the county\u2019s unemployment rate at 5.2%, matching April\u2019s rate and down from 5.4% in May 2025. <\/p>\n Still, that is higher than May\u2019s 4.3% national unemployment rate<\/a>, and it masked some weakness in the local economy. <\/p>\n The rate is calculated by a household survey to determine which members are working, looking for work or no longer seeking employment.<\/p>\n It found 18,000 workers had dropped out of the county labor force in May, artificially driving down the unemployment rate, according the California EDD.<\/p>\n Similarly, California recorded a 5.3% unemployment rate in May, on par with April, despite a drop in the labor force.<\/p>\n That rate is higher than every state other than Delaware. In May, California only added 3,100 non-farm jobs month-over-month \u2014 a job growth rate that lags behind the nation, according to an analysis by the Inland Empire Economic Partnership and the Lowe Institute of Political Economy<\/a> at Claremont McKenna College.<\/p>\n The LAEDC\u2019s report also examined the potential effects the growth in artificial intelligence has been having on L.A. County jobs \u201cexposed\u201d to AI, meaning they are vulnerable to AI replacement. <\/p>\n