The 2024 Southern California Economic Update Is Now Available Online
The “2024 Southern California Economic Update” is now available online. SCAG publishes this annual economic update with analysis covering the entire region as well as providing specific insight into the economies of Imperial, Los Angeles, Orange, Riverside, San Bernardino, and Ventura counties. The “2024 Southern California Economic Update” reviews the past year and highlights economic trends to watch for in the coming year to assist Southern California policymakers in planning for the next 30 years.
Among the report’s biggest takeaways: the Southern California economy has generally kept pace with the economic growth of the rest of the country and state, but in 2024, job growth increased in Southern California while slowing around the rest of the country. Southern California job growth was not spread evenly over the region’s economic sector. Three sectors, Healthcare and Social Assistance, Leisure and Hospitality, and Public Administration, were responsible for most of that growth.
In other positive news for the region’s economy, trade and tourism rebounded from pandemic years and the technology sector largely stabilized after a spate of layoffs by large companies from late 2022 to mid-2023.
Looking ahead to 2025, the report does not foresee an economic downturn. The strengths of the economy in 2024—growth in logistics, development of large-scale transportation, healthcare, energy projects, and increases in tourism—should continue into 2025. The political shift in the federal government could change some of the regional economic equation, especially for international trade, tourism, and immigration. The update also projects that housing construction and sales in the region will rebound as interest rates decline.
The report also highlights the diversity of the economies of the six counties that make up the SCAG region:
Population growth, lower unemployment, significant investment in new geothermal and rare mineral extraction, and continued agricultural production growth have stabilized Imperial County’s economy.
Los Angeles County, the largest county-level economy in the United States, should achieve growth in healthcare, education, professional services, and technology-related industries.
Orange County’s diverse industry base, high-performing business clusters, and highly educated workforce will drive additional growth in the year ahead.
The Inland Empire’s emergence as a logistics hub for the West Coast and the impact of steady population growth will drive economic expansion in Riverside and San Bernardino counties over the next year. In San Bernardino County, logistics accounts for one of every five jobs.
Stagnant consumer sales, low housing sales, and a sluggish employment market are limiting economic growth in Ventura County. A few sectors should achieve the most job growth in the county in the next year: Healthcare Services, State and Local Government, and Professional and Business Services. Technology jobs are also rebounding faster in Ventura County than elsewhere in the SCAG region.
This “2024 Southern California Economic Update” was prepared by SCAG and its Economic Roundtable, a select group of economists from across the region who meet quarterly to discuss trends, data, and current events impacting the region’s economy. The objective of the Economic Roundtable is to provide common, consensus-based understanding of regional economic data, trends, and themes affecting regional planning. The roundtable’s Quarterly Reports can be found on SCAG’s Economic and Demographic page, and all accompanying economic data for the region can be visualized on and exported from the SCAG Economic Trends Tool.
The “Southern California Economic Update” includes a complete report covering the SCAG region, summary briefs for each of the region’s six counties, and short essays from roundtable members covering region-wide economic sustainability and equity. Full reports for the region’s counties are included as appendices.