For 91.9 KVCR News, I'm Madison Aument. This is Economics IE. Today, I'm speaking with Jonathan Lansner, a business columnist with the Southern California News Group, which publishes The Press-Enterprise and The San Bernardino Sun. We discussed a column he published last week analyzing wage increases across California over the past five years.
Madison Aument: I’d like to start by asking—where do these numbers come from, and how are you making sense of them?
Jonathan Lansner: The state’s Economic Development Department tracks a lot of interesting data about the job market, including wages. I decided to take a look because we’ve spent so much time talking about inflation and how difficult it has been for many people. But on the flip side, a lot of us—though not everyone—have seen significant wage increases over the same period. What stood out to me is that some parts of California have seen much bigger pay raises than others. So, I analyzed data from the 29 job markets the state tracks and found some interesting trends.
Madison Aument: What time period does this data cover?
Jonathan Lansner: I looked at the last five years, going back to before the pandemic changed everything, up until November, which was the most recent data available. I thought comparing wages from 2019 to now would give people a good sense of how they’ve fared, now that—at least to some degree—things have returned to normal.
Madison Aument: Where in the state did we see the highest wage increases?
Jonathan Lansner: Interestingly, four of the top regions for wage growth were inland areas. El Centro saw a 57% increase, San Luis Obispo was up 51%, Visalia rose 40%, and Fresno increased by 33%. If you think geographically, these are all inland cities. And if you consider the economic factors, they’re all farming communities. That tells us something about one of the hottest industries in California over the past five years—the agricultural sector, particularly in the Inland Empire and surrounding areas.
One of the biggest takeaways from this data, which aligns with other reports, is that workers who were earning the least five years ago have seen some of the biggest pay increases. The simple reason? There weren’t enough of them. The pandemic, among other factors, reduced the supply of low-wage workers, forcing employers to raise pay to retain and attract employees. That’s why we’re seeing such substantial wage growth in areas not typically considered booming job markets.
Madison Aument: Looking at these increases over the past five years, what does that say about the broader state economy?
Jonathan Lansner: The good news is that many people saw wage increases that outpaced inflation, which likely helped stabilize their finances. And keep in mind—this is just wage data. Many households also received stimulus payments and other financial support, which helped sustain consumer spending and, in turn, the economy.
But it’s also important to note that higher wages contribute to inflation by increasing demand for goods and services, which pushes prices up. That’s part of the cycle.
Overall, though, I’ve covered this for a long time, and despite California’s challenges—and the critics—it remains an economically resilient place. We've weathered major disruptions, from the Great Recession to the aerospace industry collapse in the early ’90s, and of course, the pandemic. And yet, the state continues to find ways to generate economic growth.
Madison Aument: That was Jonathan Lansner with the Southern California News Group. Thanks for listening to Economics IE.
Funding for this segment comes from the Nowlock family. You can find this and other segments on our website at kvcrnews.org/econIE.
For KVCR News, I’m Madison Aument.
