Pay raises across Southern California have shrunk to their smallest level in five years – hikes that barely keep pace with inflation.

With government economic data delayed by the federal government shutdown, any hint of business conditions draws a larger-than-normal spotlight.

To gauge job market conditions, my trusty spreadsheet reviewed the Wednesday, Dec. 10 release of the quarterly Employment Cost Index . It tracks what bosses pay their employees across 15 U.S. regions, including a five-county Southern California area.

This local yardstick of wages and salaries in Los Angeles, Orange, Riverside, San Bernardino and Ventura counties shows compensation growing at a 3.4% annual rate in the third quarter, down from 4.1% in the second quarter and 4.8% in the third quarter of 2024.

It’s

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