Apparel Industry Adds Jobs in Southern California as State Economy Slowly Improves
Despite a slow-growing economy, Southern California's apparel industry last year saw a nearly 6 percent rise in employment over 2010. That was the first time in a decade the industry experienced a mini-burst in hiring in a sector that now employs 50,900 people, whose average salary is $34,500 a year.
That was the word from the Los Angeles County Economic Development Corp., which, on Feb. 15, released its “2012–2013 Economic Forecast and Industry Outlook,” prepared by the LAEDC’s Kyser Center for Economic Research.
LAEDC Chief Economist Robert Kleinhenz wasn’t sure if growth would continue in the apparel industry in 2012. “I would think as the economy improves around the country and the globe that apparel should show an uptick, but you should not expect any major gains,” he said. “The wild card in all of this is gas. If gas prices go up, people have to spend more money to put gas in their cars and don’t have money to spend on clothes."
Apparel factories in Los Angeles still rely on fast-fashion items that need to be sewn quickly and shipped to U.S. stores capitalizing on the latest hot trends.
Also, the “Made in USA” label is a popular commodity among shoppers as well as overseas consumers. That label has been helping some apparel companies find new markets for their premium-denim jeans, dresses and tops in Europe and Asia.
Growth in Southern California’s apparel industry didn’t spill over into the region’s textile industry, which employed 6,900 people in 2011—400 fewer people than the previous year. At the same time, the average price of textile products and apparel increased by 7.7 percent, according to preliminary figures from the U.S. Bureau of Labor Statistics.
Retail sales were a bright spot last year locally and across the country. Core U.S. retail sales—which excludes cars, gas stations, and home building and garden centers—were up 5.5 percent.
Southern California’s retail sales will continue to grow in 2012 by as much as 3.2 percent in Los Angeles County and 4.2 percent in Orange County, the report predicted.
Big-ticket items such as appliances and furniture aren’t doing as well as spending on health and personal care, food and beverages, and sporting goods.
Los Angeles County’s retail vacancy rates fell to 4.8 percent during the fourth quarter of 2011 after averaging 5.1 percent in 2010.
Slow steam ahead
No one is expecting California to see any earth-shattering economic gains in 2012 or 2013. The state’s gross domestic product will inch up 1.5 percent in 2012 and 1.8 percent in 2013. That is still behind the 2.8 percent to 3 percent growth considered normal. “The operative word is slow improvement,” Kleinhenz said. “But we will take improvement where we can get it.”
At the same time, the state’s unemployment rate, currently at 11.1 percent, will stay pretty even in 2012 and shrink to 10.3 percent in 2013.
Last year, job gains in California were seen in the information sector, education, and administrative and support services. Job losses were experienced in the real estate and leasing industry, government, and management of enterprises.
In Los Angeles County, the unemployment figure, now at 11.8 percent, will come down very slowly. In 2011, the county added 15,600 nonfarm jobs. This year the county should tack on another 22,700 jobs, with job growth stronger in 2013.
The largest employment gains in the county this year will come in the health services, education and information fields. The government is expected to shed 3,200 jobs while the construction industry will lose 3,300 jobs.
On the national front, the gross domestic product, which was up 1.7 percent in 2011, will do a little better in 2012 by rising 1.9 percent. That should improve to 2.3 percent in 2013, but it’s still not strong enough to help the country regain the 8.8 million jobs lost between 2007 and 2009.—Deborah Belgum
