David Smith Shares with LABJ Why Los Angeles May See Job Growth Decline
Los Angeles county’s November unemployment rate fell to 11%, a decline from the 12% in October according to the state Employment Development Department (EDD). A total of 30,000 payroll jobs for November were gained for the county due to seasonal hiring gains in retail and logistics. With the holidays behind us and restrictions being reintroduced, business activity will see a decline. Local economist, David Smith, shares with LABJ “the picture for the near term is negative.”
As restaurants and other retail businesses clampdown as coronavirus cases rise, Los Angeles may slip into job losses for the next couple of months. “Covid is proving to be a massive economic force putting workers on the sidelines and many more out of work due to layoffs in the name of public safety,” said Smith. The county would have to gain 30,000 jobs per month for a full year to return to the February 2020 peak. One sector that has held up well during the pandemic was construction. However, in November, the construction sector lost 3,300 jobs for a drop of 1.1%. “This is likely a result in fewer posted construction jobs,” added Smith.
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