LA County Unemployment Drops to 5.5% in January

Los Angeles County's unemployment rate dropped to 5.5% in January, the lowest level in over a year and a sign that the local job market keeps getting stronger.

The rate fell from 5.6% in December and 5.7% in November, according to California's Employment Development Department. A year ago, the unemployment rate stood at 5.8%, meaning the county has now seen steady improvement for 12 straight months.

The progress came despite employers cutting 58,500 mostly seasonal jobs after the holidays. Retail stores eliminated 13,800 temporary positions, and staffing agencies reduced workers by 7,300. The entertainment sector and temporary employment firms also trimmed their seasonal workforce by about 5,500 jobs each.

But here's the key detail: when employers cut seasonal jobs yet unemployment still falls, it means the underlying job market is healthy. More people found permanent positions than lost temporary ones.

Over the full year ending in January, Los Angeles County added 34,200 jobs for a 0.8% gain. Healthcare and social assistance led the way with 34,200 new positions, followed by restaurants and hospitality adding 8,500 jobs.

Among the county's 88 cities, Lomita recorded the lowest unemployment at just 3.4% for communities with at least 10,000 workers. Los Angeles stood at 5.6% while Long Beach came in at 5.2%.

The Ripple Effect

The steady decline in unemployment means thousands more families have stable paychecks and benefits. Healthcare's explosive growth particularly matters because those jobs tend to offer good wages and consistent hours.

The improvement also shows resilience after last year's devastating wildfires, which caused January 2025's job losses to spike to 99,000. This year's seasonal pullback of 58,500 jobs represents a return to more normal patterns.

Manufacturing continues shrinking as part of a decades-long shift, but the county's economy is adapting. Professional services and business support jobs grew significantly, showing companies are investing in high-skilled positions.

The county's unemployment rate now sits just above the statewide average of 5.4% and is moving in the right direction, with more people working than at any point in recent years.

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