In this video, Mayor Garcetti – together with staff at Hollywood’s Raleigh Studios – talk about the plan to bring movie-industry jobs back to LA. With his leadership, Garcetti believes 2016 was a record year for movie making, tripling the state’s film tax credit.
Category Archives: Employment
LA Job Creation
A lot will change for LA should it win its 2024 Olympic Games bid. Economically the city’s output would be incredibly impacted – in a positive way. Various studies have been established to ascertain the potential economic impact such as those by the organizing committee, Los Angeles 2024, Beacon Economics LLC and the UC Riverside School of Business Center for Economic Forecasting and Development. Other research has found that close to 80,000 jobs and anywhere potentially $160 million or more in additional tax revenues. Furthermore, the city’s economic output could be as much as $11.2 billion.
According to Beacon Economics founding partner and UC Riverside Center Director Christopher Thornberg:
“There is little doubt that hosting the Olympics is an enormous boost for a local economy — both in the short term as driven by activity surrounding the events themselves, and in the long term, given how these events raise the global profile of the region. The worry is always that these benefits come at too high a cost, but because Los Angeles already has many of the assets needed for a successful Olympic experience the upside is far greater than it would be for many other cities who would be hosting for the first time.”
Meanwhile a couple of weeks ago, the South LA area encountered the commencement of a new job training program. This will likely get around 900 unemployed/underemployed residents ready to work The Reef – a mixed-use high-rise. According to Noreen McClendon, executive director of Concerned Citizens of South Central Los Angeles, this marks “an opportunity for us to lift a lot of people out of poverty, with all this concentration of projects in the Ninth District in the next few years. The tragedy is that our community has been conditioned to believe that there are no opportunities. We have a lot of people who have criminal backgrounds, and they’re told over and over again that once you have a felony, you can’t get employment.” Alongside of this is a five week Boot Camp to prepare those who want to get a job with The Reef teaching job etiquette, fiscal responsibility and other fundamental skills. With this new project, comes an opportunity to train around 1,000 low-income individuals living in the Ninth District to work in construction; a great opportunity for future employment in this thriving industry as well.
Bolstering Business Opportunities in LA
All people of employable age/capacity need to be in work. Irrespective of their demographic this is essential for fiscal stability as well as emotional wellbeing, among other factors. Now, a focus in LA is on black people who need work. In conjunction with Black Lives Matter, J. Walter Thompson, a few days before Christmas the BackingBlackBusiness.com initiative was set up. Through this, there is a map which identifies any businesses owned by blacks nationwide (as well as in LA). According to one of the Black Lives Matter co-founders, Patrisse Cullors, “Black-owned business have long been a staple in the Black community providing jobs, economic security and a somewhere for us to go and feel seen and safe. In these uncertain times, we need these places more than ever.”
Meanwhile, according to a recent article in The LAist, LA is continuing its three year streak of adding new jobs to the area. Figures show that just in the last three years, a staggering 135,000 jobs have been added, slashing LA’s unemployment in half (from ten to five percent).
And, as one Wells Fargo senior economist, Mark Vitner explained, “California’s economy is running hot right now,” a sentiment that was echoed by Garcetti who said that jobs were being created for Angelenos while new business and investment opportunities were arising. This ultimately means that those in LA are being privy to “greater access to economic opportunity.”
Actually when looking at the numbers it seems that the amount of jobs available for those in the region has overtaken pre-1992 levels which shows a true investment in the city’s people, developing prosperity for the future.
Will LA Legalize Street Vendors?
Street vending is not legal in Los Angeles. Despite the fact that Angelenos want to make an honest salary, the city does not permit it. The Los Angeles Street Vendor Campaign recently organized a news conference, at which discussion was held on how to “wake up City Hall” to the importance of legalizing street vending.
Now, a proposal is under review to implement a permit system which would be enforceable by law via property confiscation and fines. However, the Public Works Committee has been stalling this issue for over a year now. Councilman Jose Huizar is calling for the Committee to act immediately as it’s something they’ve all been awaiting for a long time and ultimately it will be beneficial for everyone.
Today, LA is the only major US state where street vending of all types is prohibited. And, while the vendors are penalized, those that buy from them are not. There are also no regulations/ban on food trucks which use the same sidewalks to sell their wares.
Such illegalization is incredibly hard on those who rely on street vending for their income. And it’s often the poorer parts of the community which, due to this ban, continue to get poorer. Right now, LA only has a very few areas such as Venice Beach which permit the activity. Hopefully soon this will change and street vendors will finally be able to break the poverty cycle.
Escalating Employment in LA
LA will be getting more jobs thanks to Boeing. The multinational transport corporation is currently working toward an increase in job creation in the area through its Defense, Space & Security businesses in both LA and Alabama. It is anticipated that consumer products companies will bolster their advertising efforts for these jobs.
According to a report released at the end of last month, an additional 475,000 have been added to Los Angeles County since the depths of the Great Recession with a further 334,200 expected by 2020. While they will not be the most high-paying positions, the good news is that very little education will be required for these positions. In fact, not even a high school diploma (or, perhaps more important, any work experience) will be required. This accounts for more than a third of the jobs.
Then, another third of the jobs will be good for those with a high school diploma (or equivalent) and the remaining third will be good for graduates who have a BA (10.5 percent), Associate degree (4.5 percent) and high school plus education (5.6 percent).
Emerging industries in the region seem to be biosciences along with advanced transportation and fuels.
LA’s Accounting Firms: Some Data
There are many accounting firms in Los Angeles that are extremely successful and have a whole slew of clients. But as technology advances, these firms have to respond. A recent launch of a law firm in the region did just that: Leverage – a cloud accounting company began operations last month which is only going to be beneficial to clients. According to CEO and founder of the firm, Michelle Richardson, cloud accounting provides “an opportunity to make the power and expertise of full accounting departments accessible to everyone…[enabling the firm to offer professionals, startups and small businesses possibilities and a level of service that was previously only available to much larger companies.”
Who else is working well as an accountant in the area? Earlier this year, the Los Angeles Business Journal’s Los Angeles County’s Top Accounting Firm ranked Prager Metis as Number 58 on its list.
In addition, in a recent article, AdvisoryHQ’s put out its List of the Best Accounting Firms in Los Angeles, California
- Armanino, LLP (California’s largest independent accounting and business consulting firm; their tax strategies are tailored to a variety of high-net-worth individuals, businesses, and non-profits, whether on a regional or global scale )
- Barlevi & Co. (the firmoffers clients comprehensive tax and financial planning services helping them remain financially viable well into the future; the firm’s tax team uses hands-on approach that looks at the situation from every angle)
- BDO United States, LLP (provides clients with advisory services, assurance and audit services, and consulting on various levels. Being one of the world’s largest accounting networks it specializes in risk, transaction, and executive services to clients who are navigating the challenges of a professionally managed, disciplined business)
- Cohn Reznick, LLP (using an international approach for their 300+ partners and 2700 employees, the firm is constantly on the look out for the latest cutting-edge, innovative solutions for both everyday situations and unlikely events; always thinking ahead and features experts on all types of taxation issues).
- Grant Thornton, LLP (boasting a revenue of $1.45+ billion, it has been featured in Crain’s Best Place to Work, Vault’s Best Accounting Firm for Work for 2011-2015 and Accounting Top 50 2011-2015, and Working Mother’s Best companies 2006-2015. As well it offers custom-tailed services in a variety of specialist industries).
- Green Hasson Janks, LLP (established 6 decades ago the firm is one of the oldest independently-owned and operated of its kind in the area. It understands the need for international collaboration given the increased involvement with the global economy).
- Holthouse Carlin & Van Trigt (HCVT), LLP (with its technologically advanced structure, the firm is able to offer clients specific market niche focus with more value and highly accurate insight when mitigating a specific challenge related to taxation, daily practices, regulations, and more)
- Moss Adams, LLP is an internationally-acclaimed industry-focused leader in tax, accounting, and consulting services building its foundation of highly motivating core values including integrity, lifetime learning and leading by example. It was established in 2008 to offer women, who tend to go underrepresented in many fields, the opportunity to learn new skills, build strong careers, and contribute to their own overall success).
- NSBN, LLP (a full-scale CPA firm offering a large variety of services including tax, bookkeeping, financial consulting, business management, IT, etc., removing the pressure from the client with its strategies that help reduce your tax burden, keep accurate records, stay ahead of your finances, and produce smoother operations with less effort).
- SingerLewak, LLP (focuses on: Audits of employee benefit plans, Financial statement audits, Financial statement reviews, Audits of internal control and Financial statement compilations
- Windes, Inc. (has become successful in the nearly century of its existence due to its client culture, customer-centric service, and innovative, industry-leading approach to meeting clients’ financial goals. Strong focus on quality assurance).
Getting a Job in LA Just Got Easier
According to recent statistics from the Employment Development Department, the state of California added a net 631,000 jobs in August. Although the unemployment rate did not budge from its 5.5%, California encountered an additional 42 percent of all US job growth during that time frame. However, the unemployment rate there remained stagnant at 5.5 percent.
The industries in California that are currently faring best for jobs are: government, services and trade, transportation and utilities. For the state’s manufacturers, the rate of jobs being added was 2.5 percent.
These numbers are being backed by Indeed – the job search service – that recently launched Indeed Prime in LA in the hope of finding technical talent in the region. This is because it is believed top quality software engineers are not looking for work in LA.
Talking of “jobs” in Los Angeles, Laurene Powell Jobs – Steve Jobs’ widow is giving out $10 million to two teachers in the region to enable them to start a school for homeless and foster youth. The prize money – as part of Jobs’ XQ: The Super School Project – will be given to winners of the high school redesign competition she is funding. They will receive their monies over the next five years.
Start Up News in LA
Los Angeles may be infamous for its success in entertainment but as a result about, the topic often not discussed is its success in the manufacturing industry. And it seems that it is the small businesses are the ones with the most significant role in the manufacturing economy. Indeed, according to Eric Garcetti, SMEs are indeed “the most powerful driving force” of the industry, fueling the growth of the larger manufactures while “experimenting, innovating and driving the industry forward.”
In addition, with the launch of Make It In L.A., (last month) the regional initiative seeks to unite the country’s largest community of makers. An event was held for this project highlighting four of the hottest retail startups in the Greater LA area. The project comprises a coalition of organization that also wishes to support Las manufacturing ecosystem, while “inspiring entrepreneurs to turn their passions into real products in LA.”
Meanwhile, CNM LLP was named among the “Best Places to Work in Los Angeles” for the second consecutive year. So LA seems to be “working”!
Los Angeles and Work Ethics
Do people in LA love or hate their jobs? According to a recent report, it’s a bit of a mixture and not so easy to figure out. Likewise Twitter came to the same non-conclusion. There are a lot of posts but none of them are conclusive. Apparently the positive comments are coming in thick and fast (.70 tweets per 100,000 residents) and the negative ones are also quite prominent, but not as loud (.34 per 100,000 residents).
Nationwide it seems that the people who hate their job the most are those in retail. And the time people most hate their jobs are mid-July. This could be the case though because there are simply more people working – students, seasonal staff members, summer jobs, etc.
Anyway employers in the LA region – and elsewhere throughout America – is that when it comes to tweeting at least, people are more likely to post good things about their work, rather than bad, with approximately 1,000 more tweets expressing job love at any given time.
Still, at least those in LA can’t really complain about the lack of available jobs. It seems that LA county is actually a leader when it comes to recent job growth and business creation, and the New Map of Economic Growth and Recovery report placed this region at the top of the list for counties with the largest number of jobs added between 2010 and 2014. Indeed, during those four years, there was a 9.9 percent growth rate, which translated into an additional 352,840 positions. The region also topped the list of the 20 counties that added the most new businesses from 2010 to 2014.
Los Angeles: Job Creation Firms
LAX has always been great for the economy of Los Angeles. But a recent report by the Los Angeles County Economic Development Corporation (LAEDC) has shown that it has created 620,610 local jobs. In addition, with its continuing capital-improvement program, each year it is anticipated that it will generate 121,640 jobs. As Mayor Eric Garcetti enthused: “LAX is powering an economic resurgence across our city, and we are investing billions to make it even stronger. The LAEDC report confirms that this generational investment in our airport is paying off with hundreds of thousands of jobs for Angelenos and billions added to our local economy.”
Generating many jobs is also good for the actual company, vis-à-vis tax credits. Indeed, last year, the Governor’s Office of Business and Economic Development awarded various companies with state tax credits for their efforts in this area. Some of these were:
- Katie May (wedding designer)
- Boom! Payments Inc. (electronic payments provider)
- Center Corp. (healthcare IT firm)
- Planet Earth Los Angeles (recycled packaging maker)
- DMF Lighting (Custom Lighting Supplier)
- Pacific Steel Group (steel reinforcement supplier)
- NerdWallet Inc. (online personal financial services)
- CreditKarma Inc. (online personal financial services)
- International Business Machines Corporation (IT services)
- CHC Consulting LLC (Engineering and Telecommunications services)
- Cerner Corporation (Healthcare IT and Revenue Management)
- Orbital ATK Inc. (Aerospace Component Manufacturing)
- Stripe Inc. (Online Payment Processing)
- TriWest Healthcare Alliance Corp (healthcare admin)
- FineLite Inc.
Activity from LAX generated $37.3 billion in labor income, $126.6 billion in business revenues state and local taxes: $6.2 billion and $8.7 billion in federal tax revenues in 2016. And as for the LAX Modernization Program (that is due to be completed by 2023), a further 121,640 jobs per year will be created.