Here’s even more evidence that Southern California’s running out of workers: one measure of pay shows wages are growing at the quickest pace in five years.
March employment data shows the post-recession hiring spree has finally forced bosses to pay up. Average private-sector weekly earnings in March — complied from wage stats and figures on hours worked — for the region’s two metropolitan areas were rising at the fastest pace since March 2014. That came as local bosses — who’ve added workers on a year-over-year basis for 101 consecutive months — to push the number of jobs to a record 7.68 million in the four-county region.
My trusty spreadsheet shows that in Los Angeles and Orange counties, weekly earnings hit $1,082 in March — the 16th highest of 389 metro areas tracked. That’s up 6.66% in a year, the No. 90 gain in the U.S. So far this year, L.A.-O.C. weekly wages have risen at a 6.17% annual pace vs. 4.94% last year — sharp upswings from the 1.72% average raise from 2010-16.
The Inland Empire’s weekly earnings of $845 — a record high for the region — ranked No. 158 of 389. Pay rose 5.18% in a year, the No. 128 gain in the U.S. So far this year, the IE’s earnings have risen at a 3.74% annual pace vs. 2.12% last year and a 0.72% average from 2010-16.
These are noteworthy wage increases on a national scale. The median earnings in the 389 metro areas tracked were $813 — up 2.67% in a year. And California’s weekly earnings? $1,093 — No. 5 among the states — up 5.05% in a year — the No. 8 gain in the U.S.
Credit for the pay hikes goes to rising demand for workers.
In the four counties covered by the Southern California News Group, jobs grew by 66,300 in the 12 months ended in March to push regional employment to the highest job count for any March on record. Since October 2010, 1.19 million jobs were created in the region, or a 2.13% annualized hiring pace.
That’s left employers in Los Angeles, Orange, Riverside and San Bernardino counties with few options to hire.
March’s number of jobless was 358,800 compared with 381,500 a year ago — a decrease of 22,700 or 6% — and far below the 546,330 average for the previous five years.
That meant the four-county unemployment rate fell to 4.1% vs. 4.3% a year ago and a 6.4% five-year average. Compare that to comparable state joblessness (4.7%) or the U.S. level (3.9%). And it’s the lowest SoCal jobless rate this century for any March.
Plus, this worker shortage may also be why the region’s job growth is slowing: Employment is up just 0.9% in a year compared with 2.5% a year ago and 1.7% two years ago. Rest of the state? Up 1.8% percent for March.
Better late than never, most Southern California workers are finally seeing the economic recovery in their paychecks.
