Long Beach Employment Report

Long Beach has long been a smorgasbord of economic activity.  Currently, the cit hosts quite a few tech and healthcare industry firms.  The hospitality industry is also very large in Long Beach, as is the retail sector.  Given the shape that these sectors are in nationwide, it is therefore little surprise that Long Beach has a higher than average unemployment rate.  Given the fact that the official unemployment numbers do not take into account those that have given up looking for jobs or those that are underemployed, no matter how severely, the real unemployment rate in Long Beach and the surrounding areas may be close to 20%.

Long Beach used to be one of the largest manufacturing hubs on the west coast.  The Port of Long Beach is one of the most significant seaports in California, and is a gateway for international commerce.  Even the aviation industry was fond of Long Beach, as multiple aviation firms used the area for decades to produce planes and parts alike.  But the manufacturing sector that has carried Long Beach for so many years, through less severe recessions, has all but completely collapsed under the dual pressures of outsourcing and the economic recession.  The economic diversity of the area has also collapsed, leaving the Long Beach area in one of the largest local recessions ever.

Long Beach’s lack of economic diversity not only hurts the city, but also surrounding areas as well as the supply chain that is dependent on Long Beach’s port for economic activity.  Like so many east coast port cities that are collapsing under the pressure of the global economic slowdown, Long Beach is definitely hurting.

The fact that the state of California is now bankrupt and is issuing IOU’s for many government related services is scary and only helps to enforce the idea that it will likely be decades before areas like Long Beach can recover.  This place is nowhere to be if you’re in search of a job.  While there are a few small bright spots of economic activity, namely in the healthcare and retail sectors, the area as a whole should be avoided by job seekers.  I don’t think there will be very many transplants heading to Long Beach any time soon to look for steady work.

The situation will likely change little until the state of California can clean up its fiscal act.  Long Beach has undergone multiple government-funded development programs over the years with varying degrees of success.  The city needs another, more contemporary revitalization project to keep it functioning as one of the world’s busiest and most important deep-water ports.  It is the second busiest port in the nation, but without a vital import and export economy helping to keep the port busy and well funded, there can be little hope of an economic turnaround.  It would seem as though Long Beach would be a key strategic economy to keep afloat, considering its clout as a major port.  It will be interesting to see exactly how the state of California keeps this port in business over the next decade.