Los Angeles County officials released findings showing the January 2025 Eaton and Palisades wildfires continue to have severe but localized economic impacts, with rebuilding efforts expected to generate up to 209,000 job-years across multiple industries.
The Los Angeles County Department of Economic Opportunity and the Los Angeles County Economic Development Corporation's Institute for Applied Economics presented their second quarterly update Jan. 21 during a public webinar examining the fires' ongoing economic effects.
The study, funded through California's Jobs First initiative, found employment losses between the second quarter of 2024 and second quarter of 2025 reached approximately 19% in the Eaton fire area and 26% in Palisades, compared to essentially flat employment countywide.
Job losses concentrated in locally serving and consumer-facing industries, including accommodation and food services, retail trade, administrative support, and arts and recreation, according to the analysis.
Total rebuilding activity is estimated to generate between 141,000 and 209,000 job-years over multiple years, with approximately 85% tied to direct construction employment. The Palisades fire area accounts for roughly two-thirds of total rebuilding labor demand.
One job-year equals one job created or sustained over one year, not necessarily unique workers, officials said.
As of mid-January, more than 2,800 rebuilding and repair permits had been issued, though only about one-fifth of damaged parcels had submitted permit applications for main residential structures.
Housing markets showed varied impacts by geography, with ZIP codes closest to the Palisades fire perimeter experiencing sustained rent increases, while Eaton-adjacent areas showed shorter-lived effects.
Tourism-related activity remained weakest in primary fire areas, particularly Palisades, while secondary areas showed clearer signs of normalization by late 2025.
"The economic impacts of the 2025 wildfires extend far beyond the burn areas, affecting workers, businesses, and housing markets across Los Angeles County," said Supervisor Lindsey P. Horvath, whose Third District includes affected areas.
Supervisor Kathryn Barger, representing the Fifth District, said she remains committed to streamlining processes and advocating for policies that protect residents and ease their path toward rebuilding.
The year-long study will continue through mid-2026, tracking recovery indicators including workforce demand, rebuilding progress, housing stability, tourism activity and broader economic conditions.
A full recording and presentation materials are available at https://laedc.org/laedc-los-angeles-wildfires-economic-update-2/. Information about resources for fire-impacted workers and businesses is available at https://opportunity.lacounty.gov/how-we-help/emergency-resources/. Immediate hiring opportunities are available at https://opportunity.lacounty.gov/how-we-help/FireWorkforce.
Edited by SMDP Staff