Los Angeles County to add 334,000 jobs in five years; Details to be released at Southern California Economic Summit

Los Angeles County has added 388,000 jobs since the depths of the Great Recession, and should add another 334,200 by 2020 as it continues on a steady employment growth path, a new report shows.

The study, by the Institute for Applied Economics at the Los Angeles County Economic Development Corp. (LAEDC), projects county employment to grow at an average annual rate of 1.5 percent – creating a tighter labor market that should force wages up, particularly in those occupations requiring higher levels of educational attainment.

Unfortunately, the report noted, the highest number of overall openings will be found in those occupations that require a high school diploma or less, and which pay less than the county’s median annual wage of $39,250

“The strong correlation between educational attainment and earnings signals challenges ahead for delivering economic prosperity to all residents, as residents with lower-paying jobs are unlikely to be able to support a middle-class household,” the report stated.

The LAEDC study will be formally released on Thursday, Dec. 1, at the Seventh Annual Southern California Economic Summit at the L.A. Hotel Downtown. It will be featured along with in-depth economic analyses covering each of the six counties represented by the Southern California Association of Governments (SCAG). The Summit, sponsored by SCAG and the Southern California Leadership Council, also will include discussions on improving the economic viability of local communities, attracting new businesses and industry clusters, and how our region can become a bigger force in the innovation economy. More than 400 business and elected leaders are expected to attend the conference.

For Los Angeles County, healthcare is expected to drive the most new jobs (106,000) over the next five years, followed by professional and business services (75,000), leisure and hospitality (47,000) and information, entertainment and media (20,000). Evolving or emerging industries include advanced transportation and fuels, biosciences and digital media.

“A thriving and vibrant metropolis, Los Angeles County is home to more than 10 million residents and boasts a workforce of more than 4.3 million today,” the report stated. “It has one of the largest manufacturing centers in the nation, is a global gateway for trade and tourism, and draws entrepreneurs and risk takers from around the world.”

But challenges exist, including a potential slowdown in global trade, which would have a negative effect on the region’s significant logistics and distribution industry, and a widening gap between the haves and have nots.

“While economic and employment growth may well continue, there are risks emerging from the type of jobs being produced and consequent rising inequality,” the report stated. “Additionally, an insufficient supply of housing priced within reach of low- and middle-income households may make it difficult for firms to attract an adequate number of workers to keep the economy growing.”

Margaret Finlay, Mayor of Duarte and First Vice President of SCAG, said the report underscores the need for continued partnerships and collaboration, said the report underscores a wide range of opportunities and challenges facing Los Angeles County.

“While we see the potential of industries such as biosciences and advanced alternative transportation, it’s clear, too, we must act with a greater sense of urgency when it comes to educational attainment and workforce development,” Finlay said.

She added that transportation infrastructure is key to the region’s future.

“The efficient movement of goods and people is one of the most pressing challenges we face as a region,” Finlay said.

Hasan Ikhrata, Executive Director of SCAG, said the Economic Summit is an opportunity to look at new directions the six-county region can take to improve its economic viability.

“The innovation economy, in particular, offers great promise for our region,” Ikhrata said. “Taking advantage of that requires commitment and collaboration involving business, government and the education community. The Summit is a platform for that discussion. What happens after that will determine our success.”