Unemployment claims in the Los Angeles area have surged by 12% to 17% due to the severe impact of the Pallisard and Eton Blaze fires that swept through this January.
According to a report by the Nonpartisan California Policy Lab at UCLA, claims have skyrocketed not just in areas directly affected by the fires, but also in regions like South and Central Los Angeles, which are farther from the flames.
This report specifically analyzed the aftermath of the destructive fires from January, particularly looking into the impacts of the Pallisard and Eaton fires.
Co-authors, including UCLA professor Von Wachter, noted, “The economic repercussions extended beyond Palisade and Altadena. Workers residing in areas such as South and Central LA, who worked in the fire-affected zones, have also applied for unemployment.”
Additionally, the report highlighted a notable rise in claims from low-wage workers, particularly in the accommodation and food service industries, as well as individuals with lower education levels.
Estimates suggest that between 6,300 and 8,700 individuals in Los Angeles have filed for regular unemployment insurance due to the fires.
The researchers used data from administrative unemployment claims, leveraging an established partnership with the California Employment Development Division, to create a detailed picture of how the fires impacted the local workforce.
Furthermore, around 5,000 workers have sought federal unemployment assistance, which includes gig workers, independent contractors, and self-employed individuals who typically don’t qualify for regular unemployment insurance. This brings the overall number of claimants to approximately 11,300 to 13,700.
It’s estimated that between 30% and 40% of workers whose jobs were affected by the wildfire have filed claims.
The report underscores that the low-wage sector has experienced the most significant losses, with hospitality and food service workers reporting immediate spikes in unemployment claims. Interestingly, there were also notable surges recorded shortly after the fires in fields such as health care and social assistance.
When comparing demographics, the increase in unemployment claims among workers without a high school diploma was 50% higher than that of those with a college degree, as per the report.
Reflecting on the findings, co-author and senior data analyst Peter Mannino remarked on the report’s effectiveness in revealing “significant differences among those impacted by the fires.”
His colleague, Von Wachter, stressed the crucial role that unemployment benefits can play in assisting individuals following natural disasters, suggesting that these findings could inform future disaster response strategies and relief efforts.
