It should come as no surprise that Los Angeles has one of the highest unemployment rates in the nation — 11.5 percent, nearly two and half points higher than the national average. During the past year, more than 250,000 private sector jobs have been lost in L.A. County. But even before the recession, the L.A. five-county area has lost over 70 firms and nearly 16,400 jobs due to corporate relocation since 2005 according to the Los Angeles County Economic Development Corporation. Even jobs in L.A.’s flagship industry — movie and television production — are down 13,800 compared to last year, largely due to runaway production as noted in Saturday’s Los Angeles Times. Now more than ever, we must improve L.A.’s business climate or risk losing the foundation that supports our jobs and livelihoods.
The L.A. Area Chamber and other business groups have long argued that L.A.’s business climate, unlike our weather, is not conducive to business growth and job creation. As one local executive wrote in the Wall Street Journal this weekend, Los Angeles “is fast becoming a job-killing machine.” It should pain every elected official and resident of Los Angeles to read these words. Unfortunately, the proof is in the pudding. L.A.’s business tax is among the highest in the state. The city’s permitting process is lengthy and cumbersome. Business regulations are frequently changed, making it difficult for businesses to plan for the future.
The L.A. Area Chamber applauds County Supervisor Don Knabe for his initiative to create 10,000 jobs using federal stimulus funds and L.A. Mayor Antonio Villaraigosa for making jobs his number one priority during the next four years. But two leaders cannot make it happen alone. Below are five recommendations for the City of L.A. to improve the business climate and save our jobs.
1. Do No Harm: Despite record unemployment, local governments still seek to enact new mandates that add more costs to employers; costs that often must be offset by laying off employees or reducing their hours. Every piece of legislation should be accompanied by a Jobs Impact Report that measures potential impact on businesses and jobs.
2. Customer Service: Time is money and no one has money to waste today. Businesses need every interaction with government to be handled more quickly and efficiently than ever before. We applaud Mayor Villaraigosa’s plan to build a stronger business team, but every employee at city hall should see their job as being part of the Mayor’s business team.
3. Don’t Change the Rules in the Middle of the Game: Business owners regularly report following the rules prescribed by the city only to have them changed or added to late in the game. Telling business that government can change the rules after an investment has been made is a one-way ticket out of town for quality job creators.
4. Leverage Private Sector Expertise: Businessmen and women stand ready to partner with city government to share best practices on how to make these important improvements. Over the years, business people have stepped up when local government asks for their expertise, but in far too many cases, their recommendations end up collecting dust on the shelf. The business community, like other residents, loves L.A. and wants to help our city regain its economic prominence.
5. Keep Our Sights on Emerging Industries: The Chamber applauds City officials for embracing opportunities to attract green jobs to L.A. Yet, there are many more high-wage jobs in the film industry, electronic gaming, new media, health care, manufacturing and logistics already located in Southern California. The city should give equal support to growing these vibrant sectors and do everything possible to keep these jobs here in L.A.
The L.A. Area Chamber and our members look forward to working with the City and County to reverse L.A.’s position as one of the highest jobless regions in the nation. Let’s seize the day on business growth and save our jobs, jobs, jobs!