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Friday, Apr 26, 2024

Study: Labor Unrest Could Stymie Economy

The Los Angeles economy will largely hold steady this year and in 2008 although several key businesses mainly television and motion pictures may be at risk, according to a forecast released today by the Los Angeles County Economic Development Corp. The concerns are fueled by several contract issues coming to a head this year, most notably the Writer’s Guild this fall and Screen Actor’s and Director’s guilds this summer. It’s unclear how those contracts will play out, and whether a strike could result. “There are a variety of scenarios being spun out as to what might take place,” said Jack Kyser, chief economist for the group, in a statement. “The risk of strike, real or de facto, is high, and this would not be good news for areas of Los Angeles County with exposure to the business.” The unrest led the LAEDC to predict that entertainment jobs will rise by 4,500 in 2007 only to drop by 2,000 in 2008. For the most part, the study finds that the six basic industries are all poised for growth and that the county’s job growth will tally 1.1 percent job. It also predicted the housing market would stabilize by the end of the year, although real estate-related industries and construction will decline.

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