Southern California wages up 4.1%, smallest raise in nearly 5 years

Southern Californians this spring got their smallest pay hikes since the third quarter of 2020, when pandemic business restrictions were icing the economy.

That’s what my trusty spreadsheet found when looking at a federal employment cost index for private-sector workers in Los Angeles, Orange, Riverside, San Bernardino and Ventura counties.

Local wages rose at a 4.1% pace in the second quarter, down from 4.4% in the first quarter and 4.5% in 2024. Those increases pale to the 5.5% average annual hikes during 2021-23, when quitting your job for more money became a workplace norm.

Conversely, the smaller 2025 wage hikes are likely tied to fewer job opportunities across the region. But don’t overlook that this decade’s raises are a stunning change from the era before coronavirus.

Local ann