The Inland Empire is likely to see weakening job growth over the next 12 months as questions over global trade and immigrant workforce impact some of the region’s dominant industries, according to a new economic report released Thursday by the Southern California Association of Governments (SCAG) as part of its annual Southern California Economic Update. The report projects the Inland Empire will see slow job growth, causing unemployment to rise in 2026.
“The logistics sector will face a slow-down if tariffs give rise to weaker trade coming through the ports. Moreover, industries such as agriculture, manufacturing, logistics, and construction, which rely heavily on the immigrant workforce, may face labor shortages in the year ahead, limiting growth in these sectors and the overall regional economy,” said Dr. Manfred Keil, chief economist for the Inland Empire Economic Partnership, who prepared the Inland Empire analysis for SCAG.
Dr. Keil is part of an Economic Roundtable convened by SCAG to provide a snapshot of the region’s economy and a preview of economic opportunities and challenges ahead. The roundtable’s analysis suggests Southern California’s economy enters 2026 without any major source of trauma, but in a weak position, as the region adapts to disruption from artificial intelligence, sluggish job creation especially among younger age groups, fairly stable visitor counts and trade volumes despite serious concerns earlier in the year, and sustained growth in health care. The economists expect job growth to rise from 0.5% in 2025 to 0.8% in 2026, with healthcare, construction, manufacturing, and professional business services adding the most jobs. This year’s report also includes special analysis of the regional benefits and opportunities associated with the 2028 Summer Olympic and Paralympic Games…