Chamber presents annual economic report and calls for action on topics including the Port of Los Angeles, water conservation, affordable housing, reliable energy supply, skilled workforce and chronic homelessness
LOS ANGELES, CA — Today, the Los Angeles Area Chamber of Commerce and more than 150 business leaders met with Mayor Eric Garcetti and other city officials during ACCESS L.A. City Hall. The L.A. Area Chamber presented the 2016 Los Angeles City Council Districts Economic Report, which compared key economic indicators for each of L.A.’s 15 Council Districts including annual employment, average wage, tax revenue and building permits over the last year.
“ACCESS L.A. City Hall is about making business growth and job creation the number one priority for City Hall,” said L.A. Area Chamber President & CEO Gary Toebben. “The Chamber is committed to representing the voices of the business community in L.A. and building meaningful partnerships with City Hall to help the economic development of this region.”
After sharing the report findings, the Chamber went on to present an advocacy agenda featuring eight action items that can improve our economy during 2017 including:
- Making business growth and job creation the number one priority at City Hall
- Continuing LAX modernization and Metro connection progress
- Providing continued commitment to economic growth by continuing to reduce the Gross Receipts Tax
- Ensuring the Port of Los Angeles can compete and maintain market share in the competitive domestic and international goods movement economy
- Supporting the co-equal goals of water supply reliability and ecosystem restoration
- Maintaining momentum on addressing our homelessness crisis by supporting Measure HHH
- Ensuring a skilled workforce by supporting a cradle-to-career approach
- Ensuring a reliable and affordable baseline supply of energy today and in the future.
The 2016 Los Angeles City Council Districts Economic Report found that a majority of districts experienced growth in private sector employment. While the county employment rate grew by 1.9 percent, the education sector dropped by 6.7 percent. The City’s wholesale trade employment went in the opposite direction of the county rate with a 1.2 percent decrease, while the county had a 1.2 percent growth.
According to labor market and firm data, job growth rate is slowing down. Although a positive level of growth was maintained in nearly all districts, the rate of growth over the previous year is lower for seven districts. Districts 1 and 8 both had drops in the employment rate from positive to negative. District 7 saw the highest turnaround with 3.7 percent growth in 2015, up from a 0.8 percent decline in 2014.
The report also found that the average annual wage in the City of L.A. increased by 1.3 percent from 2014 to 2015 to $59,300. Nearly all industries experienced positive wage growths in 2015, with wholesale trade rated the highest at 4.9 percent growth. Retail trade came in second with a 3.5 percent increase. The transportation and warehouse industry was the sole outlier, with a 2.8 percent decrease in annual wages. Overall wages increased in all districts, except for District 13.
Mixed-use construction projects are a vital component of efforts to combat the City’s housing shortage and continue to lead growth in construction permits. However, the total value of permits declined by 4.6 percent from FY2014-2015 and FY2015-2016 to approximately $6.51 billion. Consumer spending was up, with citywide sales tax receipts up by 2.4 percent and gross business tax receipts up by 8.4 percent.
Representatives from AT&T, BNSF Railway, Chevron, Clear Channel Outdoor, Comcast NBCUniversal, Tesoro and Verizon, along with small business owners, were among those that joined the Chamber in meetings with the Mayor, City Controller Ron Galperin, City Attorney Mike Feuer, City Council President Herb J. Wesson Jr. and 12 City Council members.
For a full copy of the economic report and a detailed list of the L.A. Area Chamber’s recommendations to the City, visit www.lachamber.org.
The Los Angeles Area Chamber of Commerce represents the interests of business in L.A. County. Founded in 1888, the Chamber promotes a prosperous economy and quality of life in the Los Angeles region. For more information, visit www.lachamber.com