Local

Why LA County’s rebound is a must for California’s economy – Press Telegram

California needs the largest job market to catch up with the rest of the state as it frees itself from the coronavirus-chilled economy.

Los Angeles County has been a major impediment to state-wide recovery, well below the national pace in some respects.

please think about it. LA’s unemployment rate was 11% in April, compared to 4.7% in February 2020, just before the pandemic hit life and business. This is an angry 6.3 percentage point increase even after the 2021 economic recovery.

Now, take a look at the rest of California. My credible spreadsheet calculates that the unemployment rate in the other 57 counties was 7% in April, compared to 4.2% just before the outbreak of the coronavirus. This is a 2.8 point jump.

In the Bay Area area of ​​District 12, the unemployment rate was 6% in April, but it was 3.1% 14 months ago.

Now, take a look at the rest of California. My credible spreadsheet calculates that the unemployment rate in the other 57 counties was 7% in April, compared to 4.2% just before the outbreak of the coronavirus. This is a 2.8 point jump.

In the Bay Area region of District 12, the unemployment rate was 6% in April, compared to 3.1% in 14 months.

California “Official” Reopens June 15th LA County, home to one in four workers throughout the state, needs to be provided with a great opportunity to bring the economy back to its pre-virus state.

LA’s sharp slump in the pandemic era could be largely related to the strict obligations of the county, which restrained many businesses and closed many others. Another factor is that LA relies heavily on a pandemic-stricken industry.

Think about Hollywood’s plight.

According to economist Mark Schniep, the average number of TV and movie shoots in 2019 in the LA region was 1,435 days a month. Between April and June 2020, the number of shooting days was only 55 due to the surge in fear of coronavirus. The condition has not improved much. The industry is still reducing 60,000 jobs.

There is no doubt that many LA businesses will thrive by eliminating the operational constraints created by government and consumer ingenuity.

“LA goes bankrupt and recovers quickly,” says Schniep, director of California economic forecasting. “Technology is working very well. Movies and television are back strongly. New developments are still booming. And like all kinds of travel, tourism is booming.”

Still late

Take a look at the unadjusted state employment data from household surveys and consider how much catch-up LA needs.

Remember that we’re talking about most of California’s economy. The cohort of 4.55 million employed residents in LA in April was higher than all workers in 47 of the 58 counties in the state. And that’s more than 4.15 million people employed in those 12 Bay Area counties.

LA employment fell by 420,400 — April 2020 vs. February 2020 — a 9% decline during the pandemic era.Yes, it’s not significantly worse than the rest of California, where 12.7 million people were employed, a 7% reduction or 953,000 jobs have been lost. The Bay Area has decreased by 8%, or 381,000 workers.

But look at the number of unemployed residents in LA who have not yet returned to work.

In April there was Los Angelenos, who had an additional 316,400 unemployed. 2021 Than February 2020 — a staggering 129% increase, even after a recent recovery. Elsewhere in the state, 957,600 unemployed represents an increase in 359,400 unemployment, a 60% surge. And the bay area? 84% or 121,000 increase.

LA SMEs are a problematic place. Revenues are down about 30% from pre-pandemic levels, according to Stephen Chan of the Los Angeles County Economic Development Authority.

“Since more than 93% of companies in Los Angeles are SMEs with less than 20 employees, SME recovery is essential to the recovery of the local economy,” said a group that provides free consulting to struggling business owners. Said the Chief Operating Officer. .. “Reopening can help many SMEs increase their customer base for people whose demand for goods and services has been stagnant over the past year.”

not fun

LA work problems are major problems found in other coastal areas. Hospitality and tourism have collapsed as people stayed home and large gatherings became difficult, if not banned.

Look at the most hit LA job niches from state data from employer surveys …

Hotel: Employment of 30,500 in April — 59% of pre-pandemic employment.

Art, entertainment, recreation: 68,600 jobs — 70% of pre-pandemic levels.

Restaurant: 304,700 jobs — 77% before coronavirus.

Other important employers are still in recovery mode, but not too late …

Manufacture: Employment of 303,300 — 90% of pre-pandemic employment.

Business service: 594,900 jobs — 92% of pre-pandemic levels.

retail: 381,100 jobs last month — 92% before the coronavirus.

Real estate, construction, finance: 208,700 jobs — 93% of those good old days.

And the two LA industries, which are quite essential to a pandemic life, are very solid …

Healthcare and personal services: Employment of 709,100 — 98% of pre-pandemic employment.

Transport / Warehouse: 201,200 jobs — an increase of 800 during the pandemic era. It is “above” like “fully recovered”.

Online shopping and food delivery all make “logistics” a hot job in Los Angeles.

Jonathan Lansner is a business columnist for Southern California NewsGroup.He can reach at jlansner@scng.com

Why LA County’s rebound is a must for California’s economy – Press Telegram Source link Why LA County’s rebound is a must for California’s economy – Press Telegram

Related Articles

Back to top button