Tuesday, February 16, 2010

Los Angeles County Loses 154,000 Jobs in 2009 but Region Sees "Green Shoots" of Recovery: Jack Kyser of the Los Angeles Economic Development Corp.

In advance of the Los Angeles Economic Development Corp. 2010-2011 Economic Forecast & Industry Outlook, Chief Economist Jack Keyser gave a snapshot of the region:

  • Los Angeles County lost 154,000 jobs in 2009
  • LAEDC expects “measured recovery” where certain sectors come back but others lag
  • The local economy has hit bottom and there are "green shoots" of recovery that include an increase in international trade, a rise in film, TV, and commercial production thanks to a state film incentive, and major infrastructure projects that include the renovation of the Tom Bradley Terminal at LAX, the widening the 405, and the development of the Expo line
  • The city has a $212 million deficit, retail sales are way down, tourism is down, and property tax has plummeted due to decline-in-value reassessments
  • Budget problems are expected to linger for several years
  • Downtown, a lot of residential projects are in financial difficulty, but the opening of the Convention Center hotel should bring more people to Downtown LA
  • Demand for more office space Downtown is “problematic”
Although this is far from a rosy assessment of the local economy, at least there are "green shoots" and not 'dying seeds'. If the economy is at the bottom (or somewhere near the bottom) the expectation is that month by month, the local economy is improving and the jobs will follow. [Los Angeles Downtown News]