Los Angeles County experienced modest job growth in May, with several industries showing notable increases amid ongoing economic challenges and recovery efforts from last year’s wildfires. The county’s payroll employment, excluding agriculture and some sectors, rose by approximately 9,000 jobs to a total of 4.62 million, representing a slight improvement compared with April but remaining largely unchanged from May 2025.

A substantial driver of the recent gains was the construction sector, which added about 2,300 jobs since April. Analysts attributed this increase in part to rebuilding efforts following the January 2025 wildfires that damaged or destroyed more than 18,000 structures across the county, particularly in areas such as Pacific Palisades and Altadena. Job postings in construction surged by 45% year-over-year, suggesting a sustained demand for labor related to wildfire recovery projects, according to the Los Angeles County Economic Development Corp.’s (LAEDC) report. “This is consistent with the possibility that wildfire rebuilding activity is increasing construction labor demand in the area,” noted Max Chomas, an economist at the LAEDC’s Institute for Applied Economics.

The motion picture and sound recording industry also posted gains of 2,800 jobs in May, despite suffering a significant downturn over the past year due to reduced streaming production, runaway filming, and other factors. Nevertheless, the sector still reported a net loss of 6,700 jobs compared with May 2025.

Hospitality sectors were the largest monthly job gainers, with hotels and restaurants adding 3,700 positions, while manufacturing showed a modest uptick of 400 jobs since April. The manufacturing sector’s growth was supported by a 15% year-over-year increase in job postings and may be linked to expansions in Southern California’s aerospace and defense startups.

Overall job postings across all sectors increased by 2.4% compared with the previous year, although May marked only one of five months in the last three years to experience year-over-year growth in this measure, according to Chomas.

The county’s unemployment rate held steady at 5.2%, matching April’s figure and down from 5.4% a year earlier. This remains higher than the national unemployment rate of 4.3% for May. However, the labor force saw a decline of approximately 18,000 workers during the month, which may have contributed to the stable unemployment rate by excluding individuals who left the job market, according to data from the California Employment Development Department (EDD).

Statewide, California maintained a 5.3% unemployment rate in May, unchanged from April but higher than all states except Delaware. The state added only 3,100 non-farm jobs month-over-month, reflecting slower growth relative to the national average.

The LAEDC report also addressed the impact of artificial intelligence on local employment, noting that job listings for roles vulnerable to AI automation—such as clerical and translation positions—have lagged compared to other categories since July 2023. It remains unclear whether these declines reflect workforce replacement by AI or adjustments following pandemic-era hiring surges. Many AI-exposed jobs can be performed remotely, which could intersect with ongoing shifts in workforce patterns.

Broader economic factors influencing the county and state include tariffs, restrictions on immigrant labor, and elevated energy costs. Despite these pressures, consumer spending remains resilient, and employers continue to hire selectively against a backdrop of higher interest rates aimed at curbing inflation. Economists emphasize that the current environment, marked by greater geopolitical uncertainty and tighter labor markets, may better reflect long-term economic norms rather than the unusually stable conditions experienced over the past decade.