Tag Archives: Natalie Kitroeff

California: An “Economic Powerhouse”

It was a recent article in The New York Times by Tim Arango, Adam Nagourney and Natalie Kitroeff that sung the praises of California’s economic surge.  They began their article by describing California as having:

“the highest concentration of billionaires in the country. It exports more computers than any other state. It is the nation’s largest producer of agriculture products by far: More than $6 billion in dairy products alone last year.”

They referred to California as “an economic powerhouse — now the fifth largest economy in the world after surpassing the United Kingdom in total output this year.”

But their concern is of Jerry Brown’s uncontested successor – Gavin Newsom – and how he will “navigate California through challenging fiscal times could be critical to assuring both the state’s continuing economic durability and its outsize contribution to national prosperity.”

Founding Partner of Beacon Economics, Christopher Thornberg believes that California is reflective of the economy as a whole.  He said:

 “So goes California, so goes the U.S.. It is far and away a dominant source of job growth in the U.S.”

And that’s good because a recent LA Times article noted how employment rates in California are positive too, with an additional 44,80 net jobs and a low of 4.2% in unemployment.  There was an increase in wages but that was  not “enough to top the increase in consumer prices.”

And as SS Economics President said: “California’s economy continues to sizzle.”

A Boost for LA’s Economy

There has been some great news for LA residents recently, vis-à-vis the bolstering of the economy in particular vis-à-vis employment.  LA-based companies are continuing to hire, most notably in the second quarter.

In the first quarter there was little hiring as businesses were taking the “wait and see” approach following the election.  Business owners were concerned about the possibility of recession at the time.  Now they have seen this is not the case, business is booming.

This is evidenced by real estate executives noting the increase in lease agreements.  There was also one of the biggest deals – an 80,000 square foot expansion – signed by Riot Games Inc., in West LA.

A couple of the popular places are Hollywood and Burbank.  There have also been a slew of top-end eateries and apartment buildings opening up with new and renovated office space which has earned the area a reputation for being up-and-coming and thusly more attractive to business owners.   As Steve Algermissen of Cushman & Wakefield pointed out:  “knowledge and value-creating businesses need to be in interesting places.  There is a desire to be novel and edgy, and Hollywood has become much cooler.”

Meanwhile there have been some significant minimum wage increases in LA, with the most recent one (July 1st), according to Natalie Kitroeff of the LA Times “mark[ing] the fourth such increase in three years, and the single largest year-over-year jump in the city’s scheduled climb to $15 for all employees by 2021.”