What happens when Southern California unemployment rates plunge to lows not seen in at least decades?

Bosses have to pay up to attract and retain talent.

My trusty spreadsheet looked around Southern California to see how pay — measured by average weekly wages in the private sector — has moved as the supply of jobless workers fell by 425,000 in the past five years in the four-county region.

Los Angeles County bosses were the most generous, of late: The average weekly wages averaged $979 in the 12 months ended in April, up $41 a week or 4.3 percent in a year. That’s the fastest rate of increase since November 2011 and Southern California’s best.

Since 2013, L.A. wages have grown at a 2.7 annualized pace as jobs were added by local bosses at a 1.8 percent yearly rate. L.A. unemployment was 4.2 percent in April, lowest in the state database that goes back to 1990.

In the Inland Empire, weekly wages have averaged $808 in the past year, up $32 a week or 4.2 percent in a year. That was the largest rate of increase since February 2009.

Since 2013, wages in Riverside and San Bernardino counties have grown at a 1.9 annualized pace as jobs were added at a 4 percent yearly pace. Inland Empire unemployment was 4.2 percent in April, the lowest in the state’s database that goes back to 1990.

Orange County’s weekly wages have averaged $1,071 in the past year, the region’s highest. But that’s up only $13 a week or 1.2 percent in a year.

Since 2013, O.C. wages have grown at a 2.8 annualized pace as local bosses boosted staffs at a 2.3 percent yearly pace. Orange County’s unemployment rate was 2.6 percent in April, the lowest in 19 years.

One related economic trend dampens the value of these recent pay raises.

The Consumer Price Index for Los Angeles and Orange counties jumped at a 4 percent annual rate in the 12 months ended in April, up from a 2.7 percent rate a year earlier. This is the fastest upswing in the local cost of living since 2008 and it’s well above the national inflation rate of 2.5 percent for April.

At least many local paychecks can absorb the rising cost of buying that basket of consumer goods and services.

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