Over 54,000 workers employed in Long Beach’s formal economy will be affected by increasing the minimum wage to $15. The annual earnings of workers will increase by about $405 million. The largest share of increased wages—almost $130 million—will go to workers who also live in the City of Long Beach The greatest number of affected workers and the largest payroll increases will be in restaurants, retail trade, education, transportation and warehousing, and health care. The economic stimulus from increased consumption by workers' households will create an estimated 3,186 new jobs and generate $442 million in increased sales in the region.
At the peak of California’s most recent drought in 2009, the Los Angeles economy was in severe recession, with unemployment above 12 percent. These twin crises identified a policy opportunity to tackle both challenges together. Public investments in water use efficiency provide economic and job benefits alongside the environmental benefits from using less water.
The South Bay Economic Adjustment Strategy has been prepared to help elected officials, public sector staff, business leaders, and citizens take coordinated, effective action to recover jobs lost because of defense cutbacks. The strategy has been prepared under a grant from the Office of Economic Adjustment in the Department of Defense that was administered by Los Angeles County’s Community Development Commission.
The City of Long Beach and other centers of aerospace production that reaped the rewards of the 1980s defense-spending boom must now confront the realities of restructuring. Since World War II, the Douglas Aircraft plant made Long Beach an important center of the US aerospace industry and dominated the local economy. In 1992, the Long Beach aerospace industry employed 36,100 workers, which was 22 percent of the city's total employment. Almost all of these workers were employed by McDonnell Douglas. Long Beach aerospace workers earned a total payroll of over $1.5 billion, which was 30 percent of the city's total payroll. These figures understate the total impact of aerospace on the Long Beach economy, through linkages with firms in other industries that provide inputs to the aerospace industry, and purchases of goods and services by aerospace workers.
This study examines how firms, workers, and regional economic development institution are dealing with the severe effects of defense downsizing in the Los Angeles region. Between 1988 and 1994 the Los Angeles region lost 127,000 jobs in defense-related industries, including aircraft, missiles, instruments, and electronics. The long economic slump set off by defense cuts has incited a major debate between the advocates of regional institution building and proactive economic development and those arguing for the laissez-faire approach of reducing taxes, wages, and environmental costs.
Background An interdisciplinary research team analyzed information about the labor market, economy, industries, and defense linkages of Los Angeles County. The report recommends an economic adjustment strategy to reduce severe job losses projected as a result of cutbacks in defense funding for Los Angeles County industries.