{"id":78765,"date":"2026-01-22T14:10:51","date_gmt":"2026-01-22T22:10:51","guid":{"rendered":"https:\/\/lapost.us\/?p=78765"},"modified":"2026-01-22T14:10:51","modified_gmt":"2026-01-22T22:10:51","slug":"la-county-and-laedc-release-second-public-update-on-wildfire-economic-impact-study","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=78765","title":{"rendered":"LA County and LAEDC Release Second Public Update on Wildfire Economic Impact Study"},"content":{"rendered":"

New analysis finds wildfire recovery\u00a0remains\u00a0highly localized, with rebuilding\u00a0of residential and commercial properties\u00a0expected to generate\u00a0thousands of jobs\u00a0across Los Angeles County<\/span><\/em><\/p>\n

L<\/strong>os Angeles, CA \u2014\u00a0<\/strong>The Los Angeles County Department of Economic Opportunity (DEO) and the Los Angeles County Economic Development Corporation (LAEDC)\u2019s Institute for Applied Economics\u00a0hosted the second\u00a0public\u00a0webinar\u00a0in a\u00a0four-part\u00a0series\u00a0examining the economic impacts of the January 2025 Eaton and Palisades\u00a0fires. This\u00a0year\u2019s long\u00a0economic impact study is funded through the California Jobs First initiative by the Governor\u2019s Office of Business and Economic Development and Labor and Workforce Development Agency.<\/p>\n

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The\u00a0L<\/em>os\u00a0Angeles Wildfires: An Economic Update #2<\/em><\/strong>, presented on January 21, 2026, provided updated analysis on business activity, employment, rebuilding costs, housing market dynamics, and tourism-related activity.\u00a0Supervisors\u00a0Lindsey P. Horvath and Kathyrn Barger provided opening remarks.<\/p>\n<\/div>\n

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Building on\u00a0findings first released in September 2025<\/a>, this second update delivers a deeper, data-driven assessment of how wildfire impacts and early recovery continue to unfold across\u00a0the\u00a0direct burn areas of the Eaton and Palisades fires and the broader Secondary Fire Areas (SFAs), which experienced significant disruption due to evacuation orders, smoke conditions, and business disruptions.<\/p>\n<\/div>\n

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The analysis shows that wildfire impacts across Los Angeles County remain highly localized\u00a0but\u00a0economically interconnected. Severe job and business losses in primary burn areas continue to shape rebuilding demand, workforce needs, housing market pressures, and uneven tourism recovery, underscoring the importance of tracking these dynamics together as\u00a0the\u00a0recovery\u00a0process\u00a0evolves over time.<\/p>\n

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Key findings include:<\/p>\n<\/div>\n

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Labor Market Impacts:<\/strong><\/p>\n<\/div>\n

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  • Employment losses between Q2 2024 and Q2 2025 were steepest in primary fire areas, with jobs declining by approximately 19 percent in Eaton and 26 percent in Palisades, compared with\u00a0essentially flat\u00a0employment countywide.<\/li>\n
  • Job losses were concentrated\u00a0in\u00a0locally serving and consumer-facing industries, including accommodation and food services, retail trade, administrative support, and arts and recreation.<\/li>\n<\/ul>\n<\/div>\n
    <\/div>\n
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    Rebuilding Costs and Workforce Demand:<\/strong><\/p>\n<\/div>\n

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      \n
    • Total rebuilding activity is estimated to generate between 141,000 and 209,000 job-years over multiple years, with approximately 85 percent tied to direct construction employment.\u00a0The rebuilding process will take\u00a0place over multiple years. One job year is equivalent to one job created or sustained over one year, not necessarily unique workers.<\/li>\n
    • The Palisades fire area accounts for\u00a0roughly two-thirds\u00a0of total rebuilding labor demand, reflecting the scale and intensity of damage.<\/li>\n<\/ul>\n<\/div>\n
      <\/div>\n
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      Housing Market Dynamics:<\/strong><\/p>\n<\/div>\n

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      • More than 2,800 rebuilding and repair permits had been issued as of mid-January 2026, though only about one-fifth of damaged parcels had\u00a0submitted\u00a0permit applications,\u00a0indicating\u00a0uneven recovery progress.\u00a0The\u00a0one-fifth\u00a0is only for repair\/rebuilding\u00a0permits for the main residential structure on the parcel, not more general permits covering things like\u00a0pools.<\/li>\n
      • Housing sales and rental impacts varied by geography, with ZIP codes closest to the Palisades fire perimeter experiencing sustained rent increases, while Eaton-adjacent areas showed shorter-lived effects.<\/li>\n<\/ul>\n<\/div>\n
        <\/div>\n
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        Tourism and Visitor Activity:<\/strong><\/p>\n<\/div>\n

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        • Tourism-related activity remained weakest in primary fire areas, particularly in Palisades, while secondary areas showed clearer signs of normalization by late 2025.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n
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          Opening remarks during the\u00a0webinar\u00a0were delivered by Los Angeles County Supervisors Lindsey P. Horvath and Kathryn Barger, followed by a presentation of findings from LAEDC\u2019s Institute for Applied Economics and discussion with DEO leadership.<\/p>\n<\/div>\n

          \n

          “The economic impacts of the 2025 wildfires extend far beyond the burn areas, affecting workers, businesses, and housing markets across Los Angeles County,\u201d said\u00a0Los Angeles County Board Third District Supervisor Lindsey P. Horvath<\/strong>. \u201cThis report reflects both the challenges ahead and the determination I see every day in Palisades, Malibu, Sunset Mesa, and Topanga Canyon. With clear data and sustained collaboration, we can support a recovery that restores opportunity, stability, and hope for the communities still rebuilding.\u201d<\/p>\n<\/div>\n

          \n

          \u201cAs we continue the work of rebuilding after the January wildfires, this economic analysis underscores the profound impact on our communities\u2014from lost homes and businesses to displaced jobs. I remain committed to streamlining processes and advocating for policies that protect our residents and ease their path towards rebuilding their homes and lives. This research will help to further inform the needs of our workforce and guide the path forward,\u201d\u00a0said Los Angeles County Board Fifth District Supervisor Kathryn Barger<\/strong>.<\/p>\n<\/div>\n

          \n

          \u201cThe data makes clear what so many already know firsthand: the economic fallout from the January wildfires has been deep and widespread,\u201d\u00a0said Kelly LoBianco, Director of the LA County Department of Economic Opportunity<\/strong>. \u201cBut this analysis is more than a report\u2014it\u2019s\u00a0a tool to guide targeted recovery. By understanding where losses are greatest, we can ensure resources reach the workers, businesses, and communities that need them most. DEO\u00a0remains\u00a0focused on an inclusive,\u00a0equitable\u00a0recovery, one that not only rebuilds but reimagines a more resilient economic future for LA County.\u201d<\/p>\n<\/div>\n

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          \u201cThis second quarterly update shows that while the most severe economic impacts of the wildfires remain concentrated in the primary burn areas, recovery is unfolding unevenly across Los Angeles County. The data make clear that rebuilding, workforce demand, housing dynamics, and tourism recovery are deeply interconnected, and that the scale of economic activity required to support recovery will extend over multiple years,\u201d\u00a0said Stephen Cheung, President and CEO of the LA County Economic Development Corporation (LAEDC).<\/strong><\/p>\n<\/div>\n

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          The year-long study and quarterly\u00a0webinar\u00a0series will\u00a0continue through mid-2026, tracking recovery indicators including workforce demand, rebuilding progress, housing stability, tourism activity, and broader economic conditions. Future updates will focus on workforce needs in recovery-related industries, housing and infrastructure restoration, and the long-term economic foundations\u00a0required\u00a0for resilience.<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

          New analysis finds wildfire recovery\u00a0remains\u00a0highly localized,...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-78765","post","type-post","status-publish","format-standard","hentry","category-ca-local"],"_links":{"self":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/78765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=78765"}],"version-history":[{"count":1,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/78765\/revisions"}],"predecessor-version":[{"id":78766,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/78765\/revisions\/78766"}],"wp:attachment":[{"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=78765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=78765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=78765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}