The pandemic era’s economic gyrations have not been kind to Southern California’s lending industry.
My trusty spreadsheet, filled with state job figures, found 103,900 workers at lending institutions in December in Los Angeles, Orange, Riverside and San Bernardino counties. That’s 8.8% off the industry’s recent employment peak of 113,900 jobs in March 2020 – a loss of 10,000 workers.
This is a notoriously volatile business with modest job security. When the pandemic first struck in early 2020, lenders suffered like many locked-down businesses. Homebuying and auto sales were iced and completing loans became tricky with social-distancing requirements.
Falling mortgage rates and a thirst for used cars helped boost loan volumes in 2021, as did loan-processing innovation. But the interest rate hikes of 2022 further damaged loan-making and employment opportunities.
Last year, 2,300 local lending jobs were cut, a 2% loss. This leaves loan-making employment at 91% of February 2020, the last month before the coronavirus struck.
Here’s how lending fared across the region …
Los Angeles County: 53,500 lenders in December. For 2022, 1,300 jobs were added, a 2% gain, but that’s still only 90% of February 2020.
Orange County: 38,400 lenders. For 2022, 3,300 jobs were cut, an 8% loss, to 92% of pre-pandemic levels.
Inland Empire: 12,000 lenders. For 2022, 300 jobs were cut, a 2% loss, to 92% of pre-pandemic levels.
As a historical note, today’s local lending workforce is 32% smaller than its record employment of 1990. Why the drop? A key factor was the demise of the nation’s mortgage-making savings and loan industry, which was huge in Southern California.
In the trades
Other property-related jobs fared much better in the coronavirus economy.
Look at local construction. Bosses had 374,400 workers in December, just 2.3% off the industry’s all-time high employment hit in October 2022.
For all of 2022, 14,600 jobs were added, a 4% gain. So construction employment is at 102% of pre-pandemic February 2020.
Homebuilding’s slowdown was largely overcome by the region’s numerous highway construction projects and new logistics facilities. The big question is whether a year-end jobs dip is a seasonal slowdown or the start of a significant cooling.
Jobs across the region …
LA: 154,100 construction workers in December. For 2022, 500 jobs were added, a 0.3% gain, to 100% of February 2020.
OC: 109,400 in the trades. For 2022, 8,800 jobs were added, a 9% gain, to 103% of February 2020.
IE: 110,900 in the trades. For 2022, 5,300 jobs were added, a 5% gain, to 102% of pre-pandemic levels.
Record deal-making
The number of workers at firms that rent, sell and manage real estate hit 153,000 workers in December, an all-time high.
Employment has been boosted by favorable economic conditions. Leasing of properties has been a growing business in the pandemic era. Real estate sales were brisk before slowing sharply late last year.
Over the past 12 months, 7,000 of these jobs were added, a 5% gain. And employment’s at 102% of February 2020.
Local job swings for those who make real estate deals happen …
LA: 90,400 workers at these businesses in December, an all-time high. Over 12 months, 4,900 jobs were added, a 6% gain, to 102% of jobs in February 2020.
OC: 39,200 in this work. For 2022, 100 jobs were added, a 0.3% gain, to 97% of pre-pandemic levels.
IE: 23,400 jobs, an all-time high. Over 12 months, 2,000 jobs were added, a 9% gain, to 113% of pre-pandemic levels.
The big picture
Employment in local property-related industries is nearing the all-time high set in the last bubble era.
December’s total staffing in lending, construction and transactions was 631,300 across the four-county region after 19,300 jobs were added in 2022. That 3.2% gain put employment at 99.7% of pre-pandemic February 2020.
And the recent hiring surge leaves these jobs only 3% below their 2006 peak – a time just before an overcooked real estate market collapsed into the Great Recession.
Note that 2022’s hiring spree for property jobs was slightly behind Southern California’s overall job-creation pace.
In December, the entire four-county region had a record 8 million workers after adding 290,800 jobs in 2022, a 4% gain. Southern California employment in all industries is at 102% of pre-pandemic levels.
Across the region, here’s how total property-related jobs fared …
LA: 298,000 jobs. For 2022, 6,700 jobs added, a 2% gain, to 99% of February 2020.
OC: 187,000 jobs. For 2022, 5,600 jobs added, a 3% gain, to 99% of February 2020.
IE: 146,300 jobs. For 2022, 7,000 jobs added, a 5% gain, to 103% of pre-pandemic levels.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
Source: Orange County Register
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