Forecast Sees Continued Clouds for L.A.’s Economy

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L.A. County will be shedding jobs through 2011, according to a forecast released Thursday from economists at California State University Long Beach.

About 54,000 jobs will be lost in Los Angeles County this year, very close to the drop recorded in 2008. The outlook for 2010 is only slightly better, with 34,000 jobs lost. Even in 2011, when an economic recovery is expected to gather steam, the forecast predicts a slight job loss of 5,000.

?e expect this county to lose jobs throughout the forecast horizon as the cyclical sectors are struggling,?said Joseph Magadinno, lead report author and economist.

Taking the worst hits will be manufacturing, with the durable goods sector losing 11 percent of its employment base this year. Significant improvement is not expected until 2011, Magaddino said.

The only bright spot in the county? economy for the next two years is health care, which the forecast says will continue to add 2 percent to its job base each year.

In Long Beach, the report put the job loss for 2008 at around 2,000 mostly due to a steep decline in port-related activity. Unexpected strength in construction and tourism has helped offset this loss, the report said.

Magaddino said he expects a similar drop of 1,500 to 2,000 jobs in Long Beach this year. Next year, though, should see some improvement, led by a pickup in port activity as the national economy begins to recover.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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