Los Angeles forest fires could lead to up to 49,110 lost jobs

TIn 2025 Los Angeles Waldbranden had extensive economic and tax effects on the region, with estimates for total loss between 28 and 53.8 billion US dollars and 24,990 to 49,110 jobs.

This influence was the focus of a virtual press conference, which was now organized by the Southern California Leadership Council (SCLC). A newly released study commissioned by SCLC and commissioned by the Los Angeles County Economic Development Corporation (Laedc) Institute for Applied Economics offers the first comprehensive analysis of the destruction and economic losses from the Palisades Fire and Eaton Fire as well as data -oriented recommendations to accelerate and build long -term resilience.

“This report shows the amazing economic and personal tribute of these forest fires and underlines the urgency to invest the strategies for prevention and recovery of forest fires,” said the former governor of California, Gray Davis, who acts as SCLC-Co chairman. “We go far beyond the fire areas and affect companies, employees and communities in the entire region. Must act now to build up resistance and ensure that Southern California is better prepared for future disasters.

The study analyzed the effects of the fires on key industries with retail, healthcare, professional services, construction and educational services on the most hit hit. Disruptions in the supply of chains and the displacement of the workforce could further increase the economic challenges of the region.

“This study is a wake -up call,” said Mike Roos, President of SCLC. “Apart from the immediate destruction, these forest fires are a long -term threat to the economic stability of our region. The recovery not only has to focus on reconstruction, but also on strengthening resistance – support for companies, employees and communities in a way that reduces the effects of future disasters. “

“An important determination of the study is that the effects of the fires with the length of the recreation phase will grow,” said Stephen Cheung, President and CEO of Laedc. “In our best scenario, when recovery is reached by 2029, the report estimates the job loss of 24,990 years. However, if it takes until 2034, the job losses will double to almost 49 years.”

Restoration and resilience: key action steps

Drawing hours from previous forest fires – including the Camp Fire (2018), Marshall Fire (2021) and Lahaina Fire (2023) – the report describes several recommended measures to accelerate and improve resilience:

• Torture approval support and reconstruction of support: By rapidly reconstruction of efforts by coordinated approval procedures and financial incentives, the recovery time plans can be reduced by up to 50%.
• Investments in the resistance of the infrastructure: The strengthening of fire -hazard municipalities with improved emergency responsibility systems, microgrids and fire -resistant buildings and methods, as is necessary in the current building regulations of California, have proven to reduce the damage and accelerate the recovery.
• Financial innovations for the recovery of disasters: By implementing alternative insurance models such as parametric insurance, the companies and homeowners concerned can ensure faster financial relief. (Parametric insurance pays a fixed amount based on the size of the event, and not on the size of the losses in a traditional compensation guideline)
• Targeted business and workforce support: The direct support of the companies and displaced persons through grants, training programs and initiatives for small businesses can prevent a long -term economic decline.
• Regional coordination and willingness: By setting up forest fire-act forces with several authorities with clear road maps for relaxation, the reaction times can be shortened and the efficiency of the postal disasters can be improved.

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