Santa Clarita’s business community got a mostly encouraging forecast this week: 2027 is expected to outperform 2026 in both economic growth and job creation, according to the keynote economist at the Santa Clarita Valley Economic Development Corporation’s (SCVEDC) 2026 Economic Outlook event.
Dr. Mark Schniepp, director of the California Economic Forecast, told the Santa Clarita Valley crowd that regional unemployment has fallen to 4.6%, and that aerospace employers alone added more than 780 jobs across 2026. Manufacturing, long a backbone of the SCV economy, has held up better than in many parts of the state, while healthcare, accommodation and food service, and transportation and warehousing remain the valley’s largest employment sectors.
The outlook wasn’t entirely rosy. Schniepp cautioned that inflation and elevated interest rates are likely to stick around into 2027, and that traditional white-collar hiring will keep shrinking even as advanced manufacturing keeps expanding. He also pointed to a striking statewide figure: roughly 160,000 layoffs since January 2025 have been tied to AI adoption, though he noted early signs that this disruptive wave may be leveling off.
For Santa Clarita specifically, the forecast doubles as a bit of civic pride: the city was again recognized as California’s most business-friendly city, a distinction it has now held for four consecutive years. That reputation matters for local business owners weighing whether to expand, hire, or relocate here, especially as nearby communities navigate their own mixed economic signals.
The timing is notable. Just this week, Santa Clarita has also been dealing with the announced closure of a major aerospace manufacturing plant, a reminder that even strong sector-wide numbers can mask real disruption for the workers and vendors tied to a single employer. Schniepp’s broader point was that the valley’s diversified base, spanning manufacturing, healthcare, logistics, and hospitality, gives it more resilience than a single high-profile closure might suggest.
For small business owners across the San Fernando, San Gabriel, and Santa Clarita valleys, the takeaway is cautious optimism: hiring plans, pricing strategies, and expansion decisions may need to account for both steady blue-collar and manufacturing growth and a continued squeeze on office and administrative roles. Local chambers of commerce and the SCVEDC are expected to release more detailed sector breakdowns in the coming months.
Source: KHTS Radio
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