Computer systems design and related services employment in the Los Angeles–Long Beach–Anaheim metro area fell to 30,300 jobs in August 2026, down 6.2% from 32,300 jobs in August 2025, according to the U.S. Bureau of Labor Statistics. The decline marks a sustained contraction that began in early 2026, with employment peaking at 32,700 jobs in December 2025 before sliding through the first three quarters of 2026.

The broader professional and business services sector showed greater resilience, declining just 0.9% year-over-year to 449,700 jobs in August 2026 from 453,700 jobs a year earlier. Information sector employment also fell 6.2% during the same period, from 180,000 jobs to 168,900 jobs, suggesting technology-focused industries faced similar headwinds.

Average weekly hours for all private-sector workers edged down slightly, falling 0.3% year-over-year to 33.8 hours in August 2026 from 33.9 hours in August 2025, according to the U.S. Bureau of Labor Statistics. However, average hourly earnings rose 3.7% during the same period, climbing to $41.23 from $39.74, outpacing the modest contraction in hours worked.

Census data reveals establishment structure

Los Angeles County counted 4,424 establishments in computer systems design and related services in 2023, employing 33,806 workers with an annual payroll of $4,386,626,000, according to the U.S. Census Bureau's County Business Patterns. Average payroll per employee reached $129,759, reflecting the sector's concentration of high-skill technical roles.

Small firms dominate the landscape. Establishments with fewer than five employees accounted for 3,440 of the county's 4,424 total establishments, or 77.8% of all firms. Establishments with five to nine employees numbered 436, while those with 10 to 19 employees totaled 263. Mid-sized establishments—those with 20 to 49 employees—numbered 164, and firms with 50 to 99 employees counted 61.

Larger establishments remain relatively rare. Only 40 establishments employed between 100 and 249 workers, 16 employed 250 to 499 workers, and just four establishments maintained workforces of 500 to 999 employees. This distribution underscores the sector's fragmented nature, with the vast majority of IT companies operating as small, specialized practices rather than enterprise-scale organizations.

Search demand patterns in the Los Angeles market

Search demand in the Los Angeles market fell 12.5% in the most recent 90-day period compared to the prior period, according to aggregated search demand data for the Los Angeles market. Among IT service categories, "it support los angeles" captured the highest relative demand, indexed at 100, followed by "managed it services los angeles" at 89 and "managed it services la" at 28.

Co-managed IT services queries registered at 21 on the relative demand index, while "it support century city" reached 18. Cybersecurity topics appeared multiple times in the top 15, with "cyber security los angeles" at 17, "cybersecurity company los angeles" at 17, "cyber security company los angeles" at 13, "cyber security services los angeles" at 11, "cyber security companies los angeles" at 10, and "cyber security in los angeles" at 8.

Cloud backup and IT services in specific neighborhoods also registered measurable demand, with "cloud backup los angeles" and "it services century city" each scoring nine on the relative demand index. The concentration of neighborhood-specific searches—particularly for Century City—indicates that businesses prioritize proximity when evaluating IT service providers.

Directory supply reveals coverage gaps

LosAngeles.IT directory data shows 44 published providers as of October 5, 2026, with one claimed listing. Cybersecurity leads service coverage with 39 providers, followed by managed IT services with 38 and cloud migration with 32 providers. IT support counted 31 providers, while backup and disaster recovery and IT consulting and vCIO each listed 22.

Specialized services show thinner coverage. Compliance and IT audit and VoIP and UCaaS each counted 11 providers, while Microsoft 365 and network and Wi-Fi each listed eight. Structured cabling showed six providers, Azure consulting five, and software development three. Web development counted two providers, while AWS consulting and data center and colocation each listed just one.

The directory identified 159 coverage gaps across service-neighborhood combinations. Playa Vista and West Hollywood showed zero published providers despite being established business districts. AWS consulting gaps appeared across 23 neighborhoods, while Azure consulting and Microsoft 365 each showed multiple underserved areas.

Geographic distribution of providers

Provider density varies sharply by neighborhood, according to LosAngeles.IT directory data. Downtown LA leads with 29 providers, followed by Culver City with 21 and Burbank with 15. Santa Monica and Inglewood each counted 14 providers, while West LA and Glendale each listed 12.

El Segundo and Long Beach each counted 11 providers, while Pasadena and Torrance each listed 10. Hollywood showed nine providers, Sherman Oaks eight, and Van Nuys seven. Century City, Woodland Hills, and Commerce each counted six.

Northridge listed five providers, while Marina del Rey, Beverly Hills, and Calabasas each counted four. Studio City, Santa Clarita, and Arcadia each showed two providers, while City of Industry and Monterey Park each listed one. Playa Vista and West Hollywood recorded zero providers.

Service pricing and cost dynamics

While the U.S. Bureau of Labor Statistics reported average hourly earnings of $41.23 across all private-sector workers in August 2026, computer systems design workers commanded substantially higher compensation, with the U.S. Census Bureau's County Business Patterns showing average annual payroll of $129,759 per employee in 2023. This premium reflects the specialized expertise required for IT consulting, cloud migration, and cybersecurity engagements.

Businesses evaluating IT service costs should consult detailed benchmarks in the cost guides section, which covers pricing structures for managed IT services, IT support, cybersecurity, and other service categories. Geographic factors influence pricing, with providers in Downtown LA and Santa Monica typically commanding different rates than those in outlying areas.

Market outlook and strategic considerations

The 6.2% year-over-year employment decline signals a challenging period for Los Angeles IT services firms. With 4,424 establishments competing for a shrinking pool of work, providers face pressure to differentiate through specialized expertise, vertical-market focus, or geographic concentration. The dominance of small establishments—3,440 firms with fewer than five employees—suggests limited economies of scale and intense competition for client relationships.

The directory's 159 coverage gaps present expansion opportunities for existing providers and entry points for new firms. Neighborhoods such as Playa Vista and West Hollywood, despite their commercial activity, show no directory presence in multiple service categories. Similarly, specialized services like AWS consulting and Azure consulting remain underrepresented across most neighborhoods, despite enterprise cloud adoption continuing to drive demand.

Businesses seeking IT services should evaluate providers across multiple dimensions: service breadth, neighborhood presence, specialization depth, and pricing structure. The directory's service-specific pages, such as managed IT services and IT support, offer starting points for research, while neighborhood pages like Culver City and Burbank help identify local options.

Data & methodology

Establishment and employment figures are from the U.S. Census Bureau's County Business Patterns, NAICS code 5415 (Computer Systems Design and Related Services), for Los Angeles County in 2023. Employment trends, hours, and earnings data are from the U.S. Bureau of Labor Statistics State and Metro Area Employment, Hours, and Earnings series for the Los Angeles–Long Beach–Anaheim metropolitan statistical area, with the latest data point dated August 2026. Provider counts, service distribution, and coverage gaps are from LosAngeles.IT directory data collected October 5, 2026. Search demand figures represent aggregated search demand data for the Los Angeles market over a 90-day period ending in early October 2026.

Frequently asked questions

How many IT services establishments operate in Los Angeles County?

Los Angeles County counted 4,424 establishments in computer systems design and related services in 2023, according to the U.S. Census Bureau's County Business Patterns. Of these, 3,440 establishments had fewer than five employees, while only four establishments employed between 500 and 999 workers.

What is the average salary in Los Angeles IT services?

Average payroll per employee in Los Angeles County's computer systems design sector reached $129,759 in 2023, according to the U.S. Census Bureau's County Business Patterns. This reflects the sector's concentration of high-skill technical positions requiring specialized expertise.

How has IT services employment changed in Los Angeles?

Computer systems design and related services employment in the Los Angeles–Long Beach–Anaheim metro area fell 6.2% year-over-year, from 32,300 jobs in August 2025 to 30,300 jobs in August 2026, according to the U.S. Bureau of Labor Statistics.

Which neighborhoods have the most IT service providers?

Downtown LA leads with 29 providers, followed by Culver City with 21 and Burbank with 15, according to LosAngeles.IT directory data. Santa Monica and Inglewood each counted 14 providers, while West LA and Glendale each listed 12 as of October 5, 2026.

What IT services show the thinnest provider coverage?

AWS consulting and data center and colocation each listed just one provider in the LosAngeles.IT directory, while web development counted two and software development three. Azure consulting showed five providers and structured cabling six as of October 5, 2026.