Los Angeles County Economic and Employment Report: An SDG Perspective

Overall Employment Trends and Economic Growth (SDG 8)

This report analyzes recent employment data for Los Angeles County through the lens of the Sustainable Development Goals (SDGs), particularly SDG 8: Decent Work and Economic Growth. The county’s progress toward providing full, productive, and decent work for all faces notable challenges.

• Annual Job Growth: Employers added approximately 42,000 jobs in the 12 months ending in June, a growth rate of 0.9%.
• Slowing Momentum: This represents a significant slowdown from the previous 12-month period, which saw the creation of 60,000 jobs at a 1.3% growth rate. This deceleration poses a risk to the sustained economic growth targeted by SDG 8.
• Total Employment: The total number of payroll jobs in June stood at 4,605,000.

Labor Force Dynamics and Contributing Factors (SDG 8 & SDG 11)

A primary factor hindering job creation is a shrinking labor pool, which has direct implications for economic productivity and community sustainability.

1. Labor Force Contraction: The county’s labor force has contracted by over 1% in the past year. According to Christopher Thornberg of Beacon Economics, this contraction limits the ability of employers to fill open positions, thereby constraining economic growth.
2. Housing Affordability Crisis (SDG 11): A key driver of the shrinking labor force is the high cost of housing. This challenge directly contravenes SDG 11: Sustainable Cities and Communities, specifically Target 11.1 regarding access to adequate and affordable housing. Residents are being forced to relocate outside the county, depleting the local workforce.
3. Rising Labor Costs: Increasing labor costs were also cited as a contributing factor impacting employers’ hiring capacity and the overall economic environment.

Sectoral Performance Analysis (SDG 3 & SDG 9)

An examination of individual sectors reveals a divergent economic landscape, with significant growth in services and declines in industrial production.

Growth Sectors

• Health Care and Social Assistance (SDG 3): This sector led all others with a substantial gain of nearly 48,000 jobs. This growth is driven by demographic shifts, such as an aging population, and increased spending, directly supporting the objectives of SDG 3: Good Health and Well-being.
• Film Industry (SDG 9): Despite reports of decline, the motion picture and sound recording industry demonstrated resilience, adding 7,300 jobs (a 6.9% increase). This growth in a key creative sector aligns with the goals of SDG 9: Industry, Innovation, and Infrastructure, which encourages the development of diverse and innovative industries.

Declining Sectors

• Manufacturing (SDG 9): The manufacturing sector experienced the most significant decline, shedding 15,500 jobs. This loss, particularly in durable goods like aerospace products and machinery, presents a challenge to SDG 9’s goal of promoting inclusive and sustainable industrialization.
• Other Declines: Significant job losses were also recorded in financial activities, construction, and professional/business services.

Unemployment Rate Analysis and Social Equity (SDG 1 & SDG 10)

The county’s unemployment figures highlight persistent challenges related to poverty and inequality, central themes of SDG 1: No Poverty and SDG 10: Reduced Inequalities.

• Unemployment Rate: The unemployment rate in Los Angeles County held steady at 5.8%, a figure significantly higher than the California statewide average (5.4%) and the national average (4.1%).
• Inequality in the Labor Market (SDG 10): The elevated unemployment rate is partly attributed to a high concentration of unskilled workers, indicating a structural inequality in the labor market that hinders progress toward SDG 10.
• Minimum Wage Impact: The statewide $20 per hour minimum wage for the fast-food industry was cited as a factor that may be suppressing hiring, creating a complex dynamic between the goals of ensuring a living wage (SDG 1) and maintaining employment levels (SDG 8).
• Geographic Disparities: Unemployment rates vary widely across the county, further illustrating local inequalities. While the City of Los Angeles reported a 6.0% rate, cities like Lomita (2.8%) and Calabasas (8.6%) showed a vast divergence, underscoring the uneven distribution of economic opportunity.

Analysis of Sustainable Development Goals in the Article

Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth

  This goal is the central theme of the article. The text is entirely focused on promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. It analyzes job creation statistics, unemployment rates, labor force dynamics, and the performance of various economic sectors within Los Angeles County. The article discusses the slowdown in job growth (“growth rate of 0.9%”), the shrinking labor force (“contracted by a little more than 1%”), the overall unemployment rate (“held steady at 5.8%”), and the factors influencing these trends, such as housing costs and minimum wage policies. It also breaks down job gains and losses by sector (e.g., gains in “health care/social assistance” and losses in “manufacturing”), which directly relates to the structure of the local economy.

What specific targets under those SDGs can be identified based on the article’s content?

1. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.

   The article directly addresses this target by providing a detailed account of the employment situation in Los Angeles County. It reports on the number of jobs added, the total number of people employed (“4.78 million”), and the number of people unemployed (“292,000”). The discussion of the unemployment rate (5.8%) and its comparison to state and national averages, as well as the mention of factors like the minimum wage and the high concentration of “unskilled workers,” are all central to the concept of achieving full and productive employment.

2. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors.

   This target is reflected in the article’s analysis of job shifts between different economic sectors. The text highlights a significant gain in the “health care/social assistance sector” (+48,000 jobs) and the film industry (+7,300 jobs), while noting major losses in the “manufacturing sector” (-15,500 jobs) and declines in “financial activities, construction and professional/business services.” This sectoral analysis points to a structural shift in the L.A. County economy, which is a key component of economic productivity and diversification.

Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Unemployment rate (Indicator 8.5.2)

  The article explicitly and repeatedly provides data for this indicator. It states the overall unemployment rate for L.A. County is “5.8%,” compares it to the “statewide June average of 5.4% and way above the nationwide 4.1% level,” and provides rates for specific cities like Los Angeles (6.0%) and Long Beach (5.8%). This data is a direct measure of progress towards Target 8.5.

• Employment growth rate

  This is a key indicator for measuring economic growth and job creation under SDG 8. The article states that Los Angeles County employers added jobs for a “growth rate of 0.9%” over 12 months, and compares this to the previous period’s “growth rate of 1.3%.” This directly measures the pace of job creation.

• Employment by sector

  The article provides specific numbers on job gains and losses by economic sector, which serves as an indicator for Target 8.2 (economic diversification). For example, it mentions a gain of “nearly 48,000 jobs” in health care/social assistance and a loss of “15,500 jobs” in the manufacturing sector. These figures track the changing structure of the local economy.

• Labor force participation

  The article mentions the size of the labor force (“5.07 million”) and notes that it has “contracted by a little more than 1% over the past year.” The size and change in the labor force are crucial indicators for understanding the overall health of the job market and the availability of workers, which is relevant to achieving full employment (Target 8.5).

SDGs, Targets, and Indicators Summary

Source: labusinessjournal.com