Inland Empire Sheds 6,200 Jobs in February, Unemployment Holds at 5.5%

The Inland Empire’s labor market remained steady in February with a seasonally adjusted unemployment rate of 5.5%, unchanged from January, according to new data from the California Employment Development Department. But beneath that stability lies a more complex story—one in which job losses across key sectors have outpaced gains, signaling ongoing challenges for the region’s economic recovery.

Between January and February, the Inland Empire lost 6,200 nonfarm jobs—a 0.4% decline in total employment. This is a notable reversal from the region’s typical trajectory: over the last five years, the Inland Empire has added more than 10,500 jobs on average during the same period. Sectors that traditionally show modest growth this time of year, such as construction, accommodation and food services, and transportation and warehousing, instead posted net losses.

The warehousing and storage subsector—long a dominant force in the region’s employment landscape—was the primary contributor to this contraction. It lost 6,400 jobs in February alone, a 5% month-over-month decrease. This downturn significantly exceeds the five-year historical average, where job losses in the sector have hovered closer to 1,800. The data points to a deeper shift in the regional logistics economy, which may be grappling with changes in global supply chains, rising automation, and shifts in consumer behavior post-pandemic.

Retail trade and construction also reported notable job losses, falling by 1,700 and 600 positions respectively. In contrast, sectors such as private educational services and health care and social assistance continued to expand, adding 1,100 and 1,200 jobs, respectively—underscoring persistent demand in these essential service industries.

According to Inland Empire Growth and Opportunity (IEGO), these trends highlight the need to align workforce development with evolving industry demand. While the Inland Empire has become a national model for apprenticeship and skills-based training programs, the latest data underscores the importance of accelerating those efforts. IEGO notes that the region’s ability to remain competitive will depend on expanding access to quality employment pathways in health care, clean logistics, and advanced manufacturing—sectors positioned for long-term growth.

“Employers continue to add jobs. The number of people starting to look for work continues to increase. We know the apprenticeship model works—for both employers and workers,” said Matt Mena, Executive Director of IEGO. “While the Inland Empire is a leader in apprenticeship innovation and expansion, we can do more to increase the quality, access, and impact of our region’s apprenticeship programs.”

Also noteworthy is the labor force contraction of 2,100 individuals in February—people who either moved out of the region or stopped actively seeking work. This decrease brings the total civilian labor force in Riverside and San Bernardino counties to 2.231 million, and may explain why the unemployment rate remained flat despite widespread job losses. In short, fewer people looking for work offsets the losses in payroll jobs.

While February’s employment report deviates from historic norms, it also provides a timely reminder of the structural changes shaping the Inland Empire’s economy. Regional leaders have an opportunity to respond with targeted investment in workforce retraining, sectoral partnerships, and job quality initiatives that meet the moment. The numbers reflect more than just a temporary setback—they represent a broader transition and call for strategic action.