Orange County Leads Wage Growth in Southern California
The market has the highest median income and the lowest unemployment in the region.
“Orange County has historically been a residence of high-income individuals and median income tends to be above many counties across the nation,” Paulina Torres, research analyst at JLL, tells GlobeSt.com. “The local market was hit hard by the last recession given that financial services, specifically mortgage companies, were concentrated here, but industries like life sciences and tech have not only helped diversify the local economy but have also help create many high paying jobs that were lost in the recession. In the local market, we have a ton of occupations that are not only for recent college grads, but many also require advanced degrees as well.”
The job market in Orange County is diversified, with life and science industries helping to boost income levels and attracting educated professionals with high earning potential. “In recent years, life sciences and tech industries have helped maintain median income at a constant high level as they have experienced significant growth in the county and have thus, attracted high income-earning individuals,” Torres says. “In the past five years, professional and business services and education and health services have contributed most to OC job gains. Overall, total OC employment has increased by 21% since 2010, adding a total of 286,700 employed individuals to the local economy. As of October 2019, Orange County’s total nonfarm employment is 1,682,800, one of the highest in the nation.”
While these industries have helped to increase the median income, lower paying jobs are actually leading the wage growth rate in the market. “As for wage growth, in the last year, occupations in low paying sectors like leisure and hospitality and construction have had the greatest percentage increase in wage, 6.1% and 5.9% respectively. This has allowed median income to trend upwards as significant increases in low paying sectors have helped lessen the gap while increases in life science and tech industries have kept a constant level of high income earners.”
This year, those same industries also lead in terms of employment gain. Torres says, “In the last year, the same industries that have led wage growth are leading employment gains, leisure and hospitality with a gain of 7,000 jobs and construction, up 2,300 jobs.”