Inland Empire Leads California in Job Growth

The Inland Empire is leading economic growth in the State of California. According to research from UC Riverside School of Business Center for Economic Forecasting and Development, the Inland Empire had 2% job growth in 2019, surpassing the national and state rate. The job growth is directly connected to a recent surge in population growth as California residents look for more affordable housing.

“The Inland Empire has seen higher employment growth than the rest of the state. From 2018 to 2019, payrolls expanded by 2% in the Inland Empire,” Taner Osman, a research manager at UCR Center for Forecasting, tells GlobeSt.com. “That is great, and outpaces the growth in the rest of the state, which was at 1.8%. It is also faster than the growth that we are seeing in other Southern California counties.”

While the market saw strong job growth, wage growth was less robust. “Its wage growth, on the other hand, was a little bit slower,” adds Osman. “If you were to compare the wage growth in the Inland Empire to its peers in the rest of the state, it is slower.”

The Inland Empire has always been a more affordable market than its Southern California coastal counterparts, but the price increase in other areas has helped to drive growth in the market. “Affordability it the biggest aspect of the Inland Empire’s growth. A lot of the coastal communities in California, and especially in Southern California, has seen substantial increase in housing prices,” says Osman. “The Inland Empire has historically been the more affordable community relative to the rest of the region.”

That population growth is directly tied to the job growth in the area. “When you see population increase in a region, you would expect to see job growth to accommodate that that population,” says Osman. “That is what we have seen in the Inland Empire. As the population continues to grow, you are going to see retail and healthcare emerge to cater to the local population. So, affordability is really at the root of the employment gains.”

Of course, it isn’t only population growth driving the creation of jobs. The industrial boom—fueled by the strong national economy and consumer spending—has also helped to create strong job growth. “The Inland Empire has some strength in some sectors that do well during strong economies, like the logistics industry, transportation and warehousing,” says Osman. “As the economy is doing well, you are going to see these sectors strengthen as well.”

This year, Osman expects job growth to be similar to 2019, although he couldn’t put a precise number on it. “We would expect the rate of growth that we have seen in the last few years to continue, and we also expect the market to have a relative outperformance compared to Los Angeles and Orange County,” says Osman. “Overall, I think job growth will be stable over the next 12 months.”