NEW STATISTICS SHOW THAT SOUTHERN CALIFORNIA JOBS CONNECTED TO PORT OF LOS ANGELES HAS MORE THAN TRIPLED IN LAST 11 YEARS
ONE OUT OF EIGHT JOBS IN FIVE-COUNTY REGION IS PORT-RELATED
SAN PEDRO, Calif., Dec. 6, 2007 — As many as 918,800 jobs -- or one out of every eight jobs in the five-county Southern California region -- are related to the Port of Los Angeles, according to a study focused on the local and regional economic impacts of the nation’s #1 container port. The study, conducted earlier this year by Lancaster, Pa.-based Martin Associates, shows that the number of jobs connected to the Port of Los Angeles have more than tripled since a 1996 study estimated that 259,100 regional jobs were connected to the Port of Los Angeles. The threefold rise in jobs has largely paralleled the rise in goods movement since 1996, when the port handled 2.7 million TEUs (twenty-foot equivalent units) and was estimated to facilitate 1 out of every 24 jobs in the region.
“This study shows the magnitude of jobs and economic value connected to our operations,” said Port of Los Angeles Executive Director Geraldine Knatz, Ph.D. “It’s a strong reminder of the vital roles port operations and the goods movement industries play in our Southern California economy, and it’s impetus for the green-growth strategy that we are forging in order to reduce port emissions and continue to develop our operations to create more regional jobs in the decades ahead.”
Based on 2006 figures, the study calculated 130,869 port-related “industry jobs” spread across each of the following operational categories: marine cargo activity (121,600 jobs), cruise (2,512 jobs), fishing (1,404 jobs), marinas (1,581 jobs), and other Port tenants including Ports O’ Call (3,772 jobs). Among the “industry jobs” cited in the study, 47,105 are direct jobs in port operations and an estimated 83,764 are indirect or induced jobs that are created by the spending of firms and individuals directly employed by Port related operations. For example, an industry job may be a longshoreman at the World Cruise Terminal, and indirect jobs may be a bus operator who shuttles cruise passengers from the airports to the World Cruise Terminal, or the mechanic that maintains the bus which receives a portion of its business from cruise operations.
While “industry jobs” are tied to Port operations, according to the study Port related economic activity also generates an estimated 787,979 “port user” jobs regionally, which are jobs related to the economic activity associated with the value of the trade that is tied to cargo shipped through the Port of Los Angeles. These jobs are associated with the production of goods for export and those involved in the finishing, wholesaling, and retailing of imported goods.
Gains for Los Angeles
Based on the study's location of direct jobs in the region, the Port estimates that within the City of Los Angeles, 14,954 individuals are directly employed by Port cargo related operations, plus another 27,272 jobs are created by the spending generated by the companies that do business with the port and by the spending of their employees. These 42,226 cargo jobs account for 34.5% of the total Port of Los Angeles related cargo industry jobs in the state. Council District 15, where the port is located, has 9,873 jobs connected to cargo related operations at the Port, and the Port estimates another 18,006 spending-created jobs to total 27,879 jobs related to the Port of Los Angeles. Council District 8, in South Los Angeles, comes in second in the City, with 2,491 jobs - 882 of which are directly related to Port operations. With 20,502 jobs, the City of Long Beach has 16.6% of the Port of Los Angeles cargo related industry jobs in the state.
State & National Jobs
Altogether, the Port of Los Angeles is estimated to generate $39.1 billion in annual wages and tax revenues. On a statewide and national basis – counting direct, indirect and induced jobs, as well as cargo and non-cargo related jobs -- the Port of Los Angeles helps generate 1,075,177 jobs throughout California and 3,308,656 jobs nationwide, according to the Martin Associates study.
A separate economic analysis by regional economist John Husing estimated that the green-growth strategy driven by the San Pedro Bay Ports Clean Air Action Plan has the potential to create 300,000 to 600,000 new jobs over the next 20 years.
Celebrating its Centennial in 2007, the Port of Los Angeles is America's premier port. As the leading seaport in the nation in terms of shipping container volume and cargo value, the Port generates 919,000 regional jobs and $39.1 billion in annual wages and tax revenues. A proprietary department of the City of Los Angeles, the Port is self-supporting and does not receive taxpayer dollars. At the Port of Los Angeles, high priority is placed on responsible and sustainable growth initiatives, combined with high security, environmental stewardship and community outreach. For its industry leading environmental initiatives, the Port received two Environmental Protection Agency awards in 2006. The Port of Los Angeles - A cleaner port. A brighter future.