Survey: County Businesses Plan Deep Layoffs Next Year

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One-third of L.A. County businesses anticipate cutting their payrolls next year, more than double the 14 percent rate for the current year, according to a business survey released Tuesday.

The findings by the Los Angeles County Business Federation survey come even as Los Angeles County’s unemployment rate jumped in September to a modern record high of 12.7 percent amid the recession.

The survey also found that lack of available credit, the state budget deficit and rising workers’ compensation costs were the top concerns of the 455 county businesses surveyed late September and early October. That’s a shift from previous years when transportation, crime and education were the dominant local business concerns.

“This suggests a structural shift in business operations as businesses look at working more with less,” said Tracy Rafter, chief executive of the Business Federation, which plans to focus its lobbying efforts on remediating the concerns outlined in the survey.

However, in contrast with layoff projections, 44 percent of local businesses surveyed said they expect overall business conditions to improve at least slightly next year.

The Los Angeles County Business Federation was formed two years ago in an attempt to increase local business clout and counterbalance the influence of unions on local government. It has since grown to include 72 business organizations representing more than 150,000 business owners.

Businesses in the city of Los Angeles were especially critical of city government: 74 percent said their city is not friendly to business, compared with 44 percent in other cities in L.A. County. The L.A. businesses cited the city’s business taxes, bureaucracy and the length of time it takes to get permits and licenses as major problems.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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