By Corey Arvin, Staff Writer
Inland Empire garners national attention in Top 10 list for rebounding jobs, beating expectations.
The Inland Empire captured the national spotlight last week when CareerBuilder, a recruitment and labor information resource, cited “Riverside” as one of the Top 10 cities for job growth in the nation. The report, compiled by Economic Modeling Specialists Intl. (EMSI), included labor market data for the Riverside metro area and San Bernardino County.
“Riverside” was 10th on the CareerBuilder’s list for adding 76,646 jobs from 2010 to 2013, buoyed by strong warehouse and storage industries, as well as medical offices and civil engineering construction. The number of jobs previously expected to be added for that same period based on national job growth was 42,412 jobs – an 80.7 percent jump. The percentage of total employment due to the competitive effect of the Metropolitan Statistical Area (MSA) was 2.4 percent. “Riverside” had a total employment of 1,432,813 jobs in 2013.
[pullquote]10th ranking in top cities for job growth
76,646 jobs added from 2010-2013
1,432,813 total jobs in 2013[/pullquote]
In the report, the Inland Empire joined the ranks of major metropolitan cities such as Houston, Dallas, Los Angeles, San Francisco, Miami, and Detroit. Trailing behind “Riverside” in 11th place was Denver, Colo., with 91,246 jobs added with a total employment of 1,408,825 jobs in 2013.
Jennifer Sullivan Grasz, a spokeswoman for CareerBuilder, said it is distinguishing for a city to be on the list because “It provides perspective on the health of the local economy and job market. Those in the top ten have the biggest competitive advantage in terms of gaining share of U.S. jobs.”
“The study is specific to the local economy. In addition to warehousing, construction and manufacturing, the local economy has also benefitted from a greater investment in technology,” she said.
In a press release, Matt Ferguson, Chief Executive Officer of CareerBuilder said, “The metros producing the strongest competitive effect are often heavily dominated by specialized technical industries with well-established local supply chains.”
“The overall job growth in these markets is not primarily a product of national economic trends, but rather distinct factors in the local economy such as energy resources in Houston, technology hubs in Silicon Valley and Austin, or the motion picture industry in Los Angeles. Thirty-two of the top 50 metros have outperformed national employment growth post-recession which, in turn, can have a positive influence on other geographies.”
Exceeding Expectations
According to Larry Vaupel, Economic Development Manager for Riverside, job growth has steadily improved each month and stimulated the local economy, contributing to greater sales tax gains and a healthy general fund.
[pullquote]“The largest employment in the Inland Empire is in lower paying sectors like restaurants and retailing. Of the good paying sectors, the strongest are Logistics (Warehouses and Distribution) and construction. While growth in construction jobs is beginning to increase, it is accounting for a smaller portion of job growth than normal in the past few years,” –John Husing, Economist[/pullquote]
“We currently have more ‘Riversiders’ employed than before the recession,” said Vaupel.
As jobs were added to the area, Riverside experienced growth with hotels, retail stores, restaurants, and auto dealerships.
The strong jobs growth has generated “double digit” increases in sales tax revenue for Riverside, largely stemming from retail sales. Sales taxes revenues on auto purchases have also increased about 15 to 17 percent, said Vaupel. The city’s general fund has also increased “significantly” compared to the previous fiscal year, he said.
“It’s a ripple effect of people having disposable income. … It bodes well for the economy,” said Vaupel.
Though the national upward trend with employment data has been touted, the wages associated with new job growth have been criticized for being low-end compared to the wages of pre-recession jobs on record. According to Vaupel, the Office of Economic Development cannot track average and median wages month-to-month such as with labor market data, but the information will be evaluated when reports become available, likely from U.S. Census data.
“It is something we are concerned with. You don’t just want low wage jobs, but living wage jobs. This is something we are watching carefully.”
Almost There?
While logistics jobs continue to grow and the construction industry jobs that the Inland Empire were once known for continue to trickle in, retail and restaurant employment account for most of the region’s employment.
As much of the Inland Empire’s employment resurgence is a boon for city officials – and since most jobs are filled by local workforce – little of the recent growth can be attributed to efforts made by local officials.
According to John Husing, the recent job growth is “fundamentally the result of the region’s natural advantages coming back into play.”
“The largest employment in the Inland Empire is in lower paying sectors like restaurants and retailing. Of the good paying sectors, the strongest are Logistics (Warehouses and Distribution) and construction. While growth in construction jobs is beginning to increase, it is accounting for a smaller portion of job growth than normal in the past few years,” said Husing.
“The way to think about it is we had a very deep hole. We lost 143,000 jobs during the recession. We are climbing out of the hole. … The fact that the numbers we see are strong is a good thing. By the end of the year, we should be about 85 percent out of the hole,” he said.