SCV By the Numbers: 2024 Employment & Workforce

The 2024 Santa Clarita Valley Economic Outlook explores a resilient and evolving local labor market characterized by growth in key industries, changing dynamics, and challenges in workforce retention. Employment and business expansion, workforce training initiatives, and business assistance and attraction remain a primary focus, supported by the Santa Clarita Valley Economic Development Corporation’s (SCVEDC) integrated approach to attracting diverse business opportunities and job creation. Here are the highlights and insights on employment and workforce trends shaping the region from the 2024 Economic Outlook Book and the 2024 Economic Outlook conference this September:

 

Positive Job Growth and Sector Expansion

The labor market in Santa Clarita Valley continues to show strength, with 1,341 net new jobs expected in 2024, followed by an expected 1,633 jobs in 2025. This momentum is largely fueled by growth in advanced manufacturing, professional services, and healthcare sectors, reflecting the region's ongoing commitment to fostering high-quality, well-paying jobs. The manufacturing of high-tech, precision, and aerospace products remains a pillar of the regional economy, attracting skilled workers and supporting long-term stability. Additionally, the healthcare sector is poised for expansion, with up to 2,000 new jobs projected over the next five years, emphasizing the growing demand for skilled medical professionals to meet the needs of an aging population. Similarly, construction employment is at an all-time high, supported by new housing and infrastructure projects, including ongoing developments at Valencia, Tesoro Highlands, and Sand Canyon.

 

Labor Market Challenges and Opportunities

While Santa Clarita Valley's labor market is expanding, it faces challenges common across many regions across Los Angeles County, and the State. Unemployment has risen slightly over the past year, primarily due to modest growth in the resident workforce and uneven demand across sectors. Job creation in the State, in Los Angeles County, and the Santa Clarita Valley moderated in 2023, and that moderation has extended into 2024. The labor disputes and the correction in the tech sector from overhiring in late 2021 through mid-2022 were large contributors to the slowdown in job gains. Key industries such as construction, manufacturing, and aerospace & defense are seeing a high demand for skilled labor, highlighting the need for continued workforce development and training initiatives. This demand has spurred investment in programs to enhance job skills, ensuring a pipeline of talent to meet future needs. Though labor markets have softened relative to 2022 and 2023, the outlook does not include continued weakness; job growth rises in 2025 and remains positive through 2027.

 

Curious about who the Top Employers are in the Santa Clarita Valley? Check out who made the 2024 annual list! 

Diverse Employment Landscape

Santa Clarita Valley's employment landscape is marked by a diverse mix of sectors, including professional and business services, manufacturing, healthcare, and leisure and hospitality. The latter has rebounded strongly from pandemic-era disruptions, with peak levels of employment and healthy job creation expected in 2024 and beyond. The professional, technical, and management services sectors also show continued strength, supporting the region's overall economic growth and resilience.

2025 Forecast

According to Dr. Mark Schniepp's 2024 Economic Outlook, the economy in 2025 will be an improvement over 2024, largely due to a lower interest rate environment, a return to normal business at the Ports of LA and Long Beach, and removing the uncertainty of the next presidential administration. The principal engines of growth will be the industrial market, advanced manufacturing activity, more housing, and with it, more commercial development. With the growth of population, and more housing projects, there will be development of new retail centers, and retail spending on goods will rise in all years of the forecast. 

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The Santa Clarita Valley labor market has demonstrated resilience, adapting to post-pandemic challenges while capitalizing on new opportunities. Leisure and hospitality, one of the fastest-recovering sectors, continues to expand, with significant job gains in 2024 as Magic Mountain and Hurricane Harbor return to full operational capacity.

Office-based employment is also rebounding, with more workers returning to in-office roles, though hybrid models remain prevalent. Manufacturing, a key driver of economic activity, is expected to stabilize, with advanced automation balancing job growth in high-tech and aerospace sectors.

Inflation has moderated significantly since its 2022 peak, with rates now below 3% and forecast to approach the Federal Reserve’s 2% target by 2025. However, persistent inflationary pressures have created challenges for businesses, particularly in retaining talent as wage increases lag behind rising costs.

The labor market, while growing, has encountered tightening conditions. The unemployment rate in the Santa Clarita Valley rose slightly in 2024, paralleling national trends. This increase reflects a growing labor force outpacing job opportunities, as well as uneven demand across industries. However, softer inflation and easing wage pressures should stabilize the market in the coming years.

The Path Forward

Looking ahead to 2025, Santa Clarita Valley is well-positioned to capitalize on opportunities for continued job growth and workforce development. The region's strategic focus on attracting diverse businesses, fostering workforce partnerships, and investing in key sectors will be instrumental in maintaining its economic vitality and improving the quality of life for its residents. As more housing developments are underway to accommodate a growing population, Santa Clarita Valley is set to build on its strong foundation, creating a robust ecosystem for businesses and employees alike.

For the full report, you can download our 2024 Economic Outlook Book for information on Demographics, Real Estate, Quality of Life, and more.

The Santa Clarita Valley Economic Development Corporation (SCVEDC) is a unique private / public partnership representing the united effort of regional industry and government leaders. The SCVEDC utilizes an integrated approach to attracting, retaining and expanding a diversity of businesses in the Santa Clarita Valley, especially those in key industry clusters, by offering competitive business services and other resources.