Economy
When talking about Los Angeles economy, which is home to the largest population in California, we need to take into consideration what the economy relies on and how the recession has affected the economy.
The economy in Los Angeles relies mainly on international trade, but aerospace, petroleum, technology and tourism also play a major role. Entertainment such as TV, movies, games and music are also big contributors, which have helped this city become the largest economic center in the world.
Los Angeles is the largest manufacturing area in the western US, as well as it is home to the fifth busiest sea port in the world.
This area is home to seven Fortune500 companies including Occidental Petroleum, Health Net, Capital Group, AECOM, Northrop Grumman and J2 Global Communications.
Due to the fact that the area charges a tax based on gross receipt, many of the businesses have moved to outlying areas, where they can still easily access the city when necessary.
The largest private employer contributes $4 billion annually to the economy is the University of Southern California. The 2010 Comprehensive Annual Financial Report claimed the top employers included the University of Southern California, County of Los Angeles, Farmers Insurance Group and Fox Entertainment Group.
Economic performance was very mixed during 2010 following the recession. Some sectors grew while others weakened. Tourism was on the increase, but manufacturing and property values continued weakening. While the economy is steadily improving in 2011, the unemployment figures are still very high.
The entertainment sector started increasing at the end of 2009, while tourism, retail and international trade only started improving in 2010.
The construction of new homes was still very weak, but the housing market as a whole was on the up and up. With businesses now gaining control and confidence after the recession, job vacancies are expected to increase especially in the hospitality, administrative and technical services industries.
Personal income grew by 2.7% and retail improved by 6.6% in 2010, so Los Angeles economy is fixing itself again. Though only ranked number twenty in the Gross Product Comparisons survey of 2010.
The unemployment rate was at 12.5% in 2010 against the 5.4% of unemployed residents in 2000. That is a bad statistic for the area, but soon with the increased confidence of businesses there will be a lot more employment opportunities available this year.
Aerospace dropped to 35,400 employees in 2010 after having 38,100 in 2008. The financial industry dropped to 68,300 employees from 82,200, while the health industry, broadcasting industry and technology industries continued dropping. The health industry increased their staff compliments especially in hospital staff.
As Los Angeles recovers from the recession with the rest of the world, it is clear to see that this economic center of the world is getting back on track. It has a gross metropolitan product worth $831 billion per annum and with private companies such as the University of Southern California contributing $4 billion annually it is sure to reach success very soon.
The largest population area in California is now relying on its tourism, entertainment industry, aerospace and petroleum industry to improve quickly, so its economy can recover effectively.
With the Fortune500 companies on its doorstep, the largest manufacturing center in the western United States and the fifth busiest port in the world, Los Angeles economy can only grow from strength to strength and get back on track quickly.
Experts agree that this area is improving and all sectors should start producing and employing again by 2012, which is an amazing record for the area.
When you think that retail and personal income are already increasing and so many sectors are already offering jobs, it shows that the economy of Los Angeles will be stable again very soon.
