At 8:30 a.m. today at its annual Access City Hall program in the City Council Chambers, the LA Chamber of Commerce will release a comprehensive “Jobs Report” on
The report by Christopher Thornberg’s Beacon Economics doesn’t paint a pretty picture .
“The City of Los Angeles was hit hard by the economic downturn that began in late 2007 and continues to be felt today. Across the board, indicators of economic activity in the city are down from their pre-recession peaks–total employment, commercial and residential construction, and business receipts have all suffered…
“While there are bright spots, the larger trends darken the outlook. The 8.5 percent drop in gross business receipts from 2008 to 2009 in the city signals trouble for local business but also for the local government, as the gross receipts tax is an important source of revenue for the city.
The Chamber is using the report to support its push for city pension reform and tax breaks for business as part of an overall strategy to stir economic growth that stalled when the housing bubble started to burst nearly four years ago.
“The focus will be a targeted agenda of steps that the City of Los
Angeles can take to improve our business climate and encourage the
creation of new jobs,” said Chamber president Gary Toebben.
“This report is a first because we broke down existing city and
county data by Council district. Over the past few weeks, we’ve been
meeting with Councilmembers to share our findings and talk about how we
can use this data to move forward with economic development efforts in
Here are a few short excerpts of what the report says is going on economically in the seven Council districts up for election in March:
Employment in District 2 has trended downward over the last three years, falling by 2 percent in 2007 and by 4 percent in 2008 and 2009.Sales tax receipts in District 2 totaled about $26.8 million in 2009, 9.3 percent lower than a year earlier 10
District 4 showed strong job growth heading into 2007 but was hit sharply by the recession. The district lost 11.6 percent of total employment in 2008, the highest rate of job loss among all city council districts. Employment continued to shrink in 2009, with 3 percent fewer jobs in the district.
District 6 has been shedding jobs for four consecutive years. The job losses have accelerated recently as well, dropping 8.5 percent in 2008 and 7.5 percent in 2009.Sales tax receipts in the district tumbled 12.6 percent in the fiscal year ending in 2009 after a 2 percent decline a year earlier.
Council District 8 employs the fewest number of people (41,340) and is also home to the fewest number of firms (1,875). Average annual wages of $38,898 in the district also fall well below the city average.Employment and Firm Statistics District 8 has weathered the start of the recession better than the rest of the city, adding 1.7 percent more jobs in 2008 and 2.4 percent more in 2009. No other district reported positive employment growth in 2009. The average wage paid in the district has also show strong growth over the last four years, a 5.1 percent wage increase in 2009 alone.
In District 10, a boost in commercial construction in 2006 helped delay the decline in new construction, but building permits for new structures eventually dipped below $50 million from highs above $200 million.District 10 sales tax revenue dipped 8.2 percent, to $11.4 million, in 2009. Growth in receipts was flat in 2008.
Job growth in District 12 has been negative for all four of the years for which we have data. Also, the rate of job loss has picked up recently as the district shed 5.5 percent of its jobs in 2008 and 2.8 percent in 2009, following more modest declines in the earlier years.Council District 12 has experienced sharp declines in gross business receipts recently, falling by 8.7 percent in 2008 and 6.4 percent in 2009.
Sales tax receipts in the district fell $4.9 million in 2009, to $23.3 million–the largest dollar decline in the city
Employment in District 14 has suffered since the start of the recession, with a loss of 5.2 percent of total employment in 2009. After strong wage growth in the three years prior, average wages in District 14 edged down 1.0 percent in 2009,
to $42,688 per year.Sales tax receipts in the district suffered in 2009–dropping 13.2 percent from the prior year, to $9.5 million.