California Cities with the Highest Job Growth and Population Growth (2021-2024)

Job Growth

Over the past three years, several California cities have experienced significant job growth despite various economic challenges. Here are some of the cities with notable job growth:

- San Diego: Added 21,000 new jobs in 2023, leading the state in job growth for that year.

- Inland Empire: Posted 19,800 more jobs in 2023, making it one of the top regions for job growth.

- Sacramento: Added 18,200 new jobs in 2023, following closely behind the Inland Empire.

- Los Angeles-Long Beach-Anaheim: Experienced a 7.0% increase in employment since 2021, translating to 402,900 new jobs.

- San Jose-Sunnyvale-Santa Clara: Saw a 5.5% increase in employment since 2021, adding 59,200 jobs.

Population Growth

In terms of population growth, several cities and counties in California have seen significant increases over the last three years:

- Paradise: Experienced a dramatic population increase of nearly 66% from July 2020 to July 2023, largely due to rebuilding efforts after the Camp Fire.

- Lathrop: Saw a population growth of 5.4%, driven by housing production.

- Emeryville: Grew by 5.0%, also due to housing gains.

- Orland: Increased by 4.9% in population.

- Shafter: Experienced a 4.3% growth in population.

Additionally, some counties have also shown notable population growth:

- Sutter County: Grew by 1.9% due to housing gains.

- Imperial County: Increased by 1.8%.

- Glenn County: Saw a 1.4% rise in population.

- Yuba County: Experienced a 1.1% increase.

- San Benito County: Also grew by 1.1%.

While California's overall job growth rate in 2023 was relatively low at 0.87%, specific cities and regions have shown impressive growth both in employment and population. San Diego, the Inland Empire, and Sacramento lead in job creation, while cities like Paradise, Lathrop, and Emeryville have seen significant population increases. This data highlights the diverse economic dynamics across the state, with some areas thriving despite broader challenges.

California Cities with the Highest Job Growth (2021-2024)

San Diego

San Diego has emerged as a leader in job growth within California, adding 21,000 new jobs in 2023 alone. This growth is attributed to a diverse economy that includes strong sectors in technology, healthcare, and tourism.

Inland Empire

The Inland Empire, which includes Riverside and San Bernardino counties, added 19,800 jobs in 2023. This region has seen substantial growth due to its logistics and warehousing sectors, driven by its strategic location and infrastructure.

Sacramento

Sacramento has also been a significant contributor to job growth in California, with 18,200 new jobs added in 2023. The city benefits from being the state capital, which supports a robust public sector, along with growing healthcare and technology industries.

Los Angeles-Long Beach-Anaheim

The Los Angeles-Long Beach-Anaheim metropolitan area experienced a 7.0% increase in employment since 2021, translating to 402,900 new jobs. This growth is driven by a diverse economy that includes entertainment, technology, and international trade.

San Jose-Sunnyvale-Santa Clara

The San Jose-Sunnyvale-Santa Clara area saw a 5.5% increase in employment since 2021, adding 59,200 jobs. This region, known as Silicon Valley, continues to thrive due to its concentration of technology companies and startups.

California Cities with Negative Job Growth

Over the past three years, several cities in California have experienced negative job growth due to various economic challenges, including tech layoffs, strikes, and high costs of living and doing business. Here are some notable examples:

San Francisco

San Francisco saw a 1% decrease in jobs in 2023. The city lost approximately 11,400 jobs, which was a significant anomaly compared to other cities in the Bay Area and the state. The decline was driven by a weakening technology sector and other economic pressures.

Los Angeles County

Los Angeles County experienced minimal job growth of only 0.3% in 2023. The entertainment industry, a major economic driver for the region, lost 38,000 jobs in the motion picture and sound recording sectors due to strikes and other issues.

San Jose

San Jose's employment grew by just 0.4% in 2023. The city, part of Silicon Valley, was affected by significant tech layoffs as companies adjusted their workforce in response to changing economic conditions.

Tech and Retail Sectors

Across the state, the tech and retail sectors have been particularly hard hit. The state's information and business and professional services sector, which includes high-paying jobs like computer programmers and engineers, was down more than 105,000 jobs in January 2024 compared to the previous year. Additionally, the retail sector faced challenges with job cuts and slower hiring rates.

Other Sectors and Regions

- Movie Industry: The movie business saw a 25% reduction in jobs, largely due to major strikes that halted production.

- Temporary Agencies: Employment in temp agencies dropped by 14%, reflecting a slowdown in hiring.

- Lending and Warehousing: Lending jobs decreased by 9%, and warehousing jobs fell by 5%, impacted by rising interest rates and cooling online shopping, respectively.

The overall job growth in California has been sluggish, with the state ranking last in job growth in 2023, adding workers at a rate of just 0.87%, which is less than half the national rate of 2%. This trend highlights the economic challenges faced by various cities and sectors within the state.

California's Job Growth Compared to Other States

Over the past few years, California's job growth has shown mixed results, with some periods of robust growth and others of slower expansion. Here's a detailed comparison of California's job growth relative to other states:

California's Job Growth

- Recent Performance: In May 2024, California added 43,700 nonfarm payroll jobs, marking the largest increase since October 2023. This accounted for 16.1% of the nation’s overall job gains for that month.

- Long-Term Trends: Since May 2020, California has gained approximately 3,100,400 jobs, averaging about 63,273 jobs per month.

- Sector Performance: Notable job gains were seen in sectors such as Leisure and Hospitality (+10,200 jobs in May 2024) and Trade, Transportation, and Utilities (+5,100 jobs). However, the Information sector saw a decline, losing 1,900 jobs in May 2024.

Comparison with Other States

- Top Performers: States like Nevada, Texas, Florida, and Hawaii have shown higher job growth rates compared to California.

  - Nevada: Experienced a 5.1% job growth from February 2022 to February 2023.

  - Texas and Florida: Both saw a 4.6% job growth in the same period.

  - Hawaii: Reported a 4% job growth.

- Overall Rankings: While California added the largest total number of new jobs due to its large population, its year-over-year growth rate was more modest compared to these states. For example, California's job growth rate was not among the top five when measured by percentage increase.

Challenges and Opportunities

- Economic Challenges: California's job market has faced challenges such as tech layoffs, high costs of living, and industry-specific issues like strikes in the entertainment sector.

- Opportunities: Despite these challenges, California continues to be a major contributor to the national job market, with significant job additions in various sectors and a decreasing unemployment rate, which fell to 5.2% in May 2024.

California's job growth has been substantial in terms of absolute numbers, but its growth rate lags behind some other states like Nevada, Texas, and Florida. The state's diverse economy allows for significant job additions, but economic challenges have tempered its growth rate compared to the leading states.

For more detailed insights and updates on California's job and population growth, visit LoganWinn.com.

Logan Winn, MBA

M: (925) 989-3425
E: Logan@LoganWinn.com

DRE #02238565

Let’s Win Together!

https://www.loganwinn.com
Previous
Previous

Sacramento Housing Market: A Mid-Year Analysis of Trends and Prices

Next
Next

Forecasting U.S. Home Values: A Look Ahead to 2030