23 Mar FOR IMMEDIATE RELEASE: The Valley Economic Alliance Board of Directors Shares Economic Outlook for San Fernando Valley
FOR IMMEDIATE RELEASE
March 23, 2023
818-379-7000 ext. 106
The Valley Economic Alliance Board of Directors
Shares Economic Outlook for San Fernando Valley
Sherman Oaks, California– Today, at its monthly Board of Directors meeting, The Valley Economic Alliance published results from its Economic Outlook Board Poll, indicating guarded optimism about the state of the Valley economy among its 83-member Board.
The Economic Outlook Board Poll results indicated that:
- For the outlook for the remainder of 2023, 63% of the Board believes that the Valley will experience mild recession, 20% anticipate a significant recession, and 16% anticipate mild growth
- Looking ahead to 2024, 45% of the Board anticipate a mild recession, while 30% expect mild growth, but 15% suspect a significant recession is in store
- Among the most significant challenges to the economy, 45% of the Board was most concerned about inflation, 28% most concerned about the interest rates, and 17% concerned about workforce issues
- On the topic of inflation, fully 43% of the Board believes inflation will rise in 2023, while 28% believe it will remain the same, and 17% believe it will decrease
- As for unemployment, 43% of the Board believe that unemployment in the Valley will increase, while 41% believe it will remain flat, and 16% believe that it will decrease
- When considering the Valley’s large and diverse economy, 49% of the Board expects our key sector of growth to be Healthcare, while 30% put their confidence in Technology, and 13% in the growth of Professional Services
“The Alliance Board is composed of Valley leaders from all sectors including the business, government, nonprofit sectors,” said Board Chair Fred Gaines, Partner of Gaines & Stacey, LLP. “When we take the pulse of the Valley among these Valley influencers, we capture in large part the sentiment of the region we so well represent.”
The poll was conducted in response to the March 2, 2023 Valley Visions SFV Economic Outlook: Past, Present, Future presentation at The Alliance’s Education & Workforce Development Committee by Shannon Sedgwick, Director of the LAEDC Institute for Applied Economics (replay available here). Shannon Sedgwick oversees and executes the planning and design of economic research projects and develops subject-specific information and data interpretation for economic impact, demographic, workforce development, transportation, and industry and issue studies. Sedgwick is a principal contributor to the Center for a Competitive Workforce reports prepared for the California Community Colleges and local Workforce Development Boards (WDB), among other notable works.
Sedgwick highlighted the following data impacting the economic health of The Valley:
- 57.7% of the working population worked 34 or more per week
- 23.5% did not work at all
- 70.7% commuted to work by car
- 12.3% worked from home
- The highest concentration of worker is employed in the information sector (film, tv, and telecommunications), accounting for almost 25% of the population
- The greatest post-pandemic recovery is the health care, professional and business service, and transportation industries
- The weakest recovery is in the manufacturing, fast food, and government industries
- Unemployment rates range 3.8-5.8% across SFV cities, which is a decrease from the following year
- Job postings for registered nurses topped the list for all 5 cities and LA County
- The probability of recession in the next 12 months hovers at 50-50
For more information about The Alliance and its community and economic development priorities, visit TheValley.net/events or call (818) 379-7000.
The Valley Economic Alliance is a 501(c)(3) non-profit organization of business, government, education, and community leaders. Our mission is to engage and unite Valley stakeholders to raise standards of living and economic vitality across the San Fernando Valley, a five-city region encompassing Burbank, Calabasas, Glendale, Los Angeles, and San Fernando. This region consists of more than 1.9 million residents, over 160,000 businesses and covering more than 350 square miles. To learn more about The Valley Economic Alliance, visit TheValley.net.
03-23-2023 Media Release-Alliance Economic Outlook Board Poll