Southern California real estate bosses add only 400 workers in August

Hiring by Southern California bosses in real estate-linked industries crawled to a near halt in August, but the slight gain pushed the region’s staffing to its highest level since the housing bubble burst over a decade ago.

My trusty spreadsheet found property-related employment in Los Angeles, Orange, Riverside and San Bernardino counties was at a post-Great Recession high of 796,400 in August – up 400 for the month.

How slow was that? Well, it was the weakest month since March. In pre-pandemic 2015-19, an average August added 3,580 real estate jobs.

The hiring chill comes as the Federal Reserve continues its use of high interest rates to try and cool an overheated economy. The rate impact has been mixed. Look at local real estate work: Jobs grew locally by 14,500 positions over 12 months, or a 1.9% gain.

And consider staffing across Southern California in all other industries. Employment totaled 7.2 million workers – up 21,200 jobs in a month. Over 12 months, non-real estate jobs are up 145,800 over 12 months or a 2.1% gain.

Don’t overlook real estate’s job-market clout, as its share of local employment was 12.6% in August.

The industry’s hiring equaled only 2% of all new local jobs for the month and just 9% of Southern California hires for the year. Since 2010, the end of the Great Recession, real-estate-linked jobs have equaled 13% of local hiring.

By the slice

Here’s how key real estate-related employment niches in Southern California fared in August …

Building and civil construction: 123,300 workers in various positions – a post-Great Recession high – up 1,000 for the month and up 1,800 over 12 months, or a 1.5% gain. Average August had a 780 job increase. Major projects, especially roads, move forward.

Trade construction specialists: 260,400 employed by contractors – off 900 for the month and up 4,400 over 12 months, or a 1.7% gain. Average August had a 2,860 job increase. Some homebuilding efforts have cooled.

Lending: 104,600 folks in various slices of credit work – off 100 for the month and up 2,200 over 12 months, or a 2.1% gain. Average August had a 20-job increase. This niche remains 8,800 jobs below pre-pandemic levels and pricey mortgage thwarts buyers and refinancings.

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Real estate services: 139,900 people handling transactions – off 100 for the month and up 900 over 12 months, or a 0.6% gain. Average August had 240 job losses. High rates and a slow renting pace dim this niche.

Building supplies: 53,100 sellers of equipment and materials – off 300 for the month and off 700 over 12 months, or a 1.3% drop. Average August had 420 job losses. Less building and remodeling, less need for store staffing.

Building services: 115,100 jobs in commercial property operations – post-Great Recession high – up 800 for the month and up 5,900 over 12 months, or a 5.4% gain. Average August had 580 job increase. Return-to-office efforts boost demand for these workers.

Geographically speaking

Here is how real estate employment breaks down, by metro area …

Los Angeles County: 376,300 real estate jobs – up 2,800 for the month and up 6,100 over 12 months, or a 1.6% one-year gain. An average August in 2015-19 had 700 hires. Property jobs equaled 8.1% of all LA workers last month.

Orange County: 231,400 real estate jobs – off 700 for the month and up 4,000 over 12 months, or a 1.8% one-year gain. An average August in 2015-19 had 1,420 hires. Property jobs equaled 13.9% of all OC workers last month.

Inland Empire: 188,700 real estate jobs – off 1,700 for the month and up 4,400 over 12 months, or a 2.4% one-year gain. An average August in 2015-19 had 1,460 hires. Property jobs equaled 11.3% of all IE workers last month.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

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Source: Orange County Register