25% Jump in Employer Optimism
Tempered by taxes, energy costs, infrastructure as top concerns
A new Los Angeles County Business Federation (BizFed) survey shows employers think things are getting better – 25% more say business conditions will improve this year than did last year and 20% more report that they plan to hire than did last year.
The annual survey of 120 BizFed member organization representing 258,000 employers with nearly 3 million employees finds:* 65% believe business conditions will improve this year * 36% plan to hire this year * Nearly half (46%) anticipate making capital investments in both durable and non-durable goods, either on limited basis on based on availability of funding * 60% believe the minimum wage increase will either have no impact or a positive economic impact
The optimism is tempered by concerns about taxes and fees, rising energy costs, and public infrastructure. For the fourth year in a row, taxes and fees top the BixFed survey as the highest priority concern for employers. Energy and public infrastructure made leap into the second and third spots in this years poll about employer priorities, moving up from the seventh and 12 sports, respectively, in 2013. Employers report that they need reliable access to adorable energy and adequate waterways, roads, bridges, and railways to continue to operate. Although there was no one city clearly identified as most business friendly, the City of Los Angeles stood again as being cited most frequently by employers as unfriendly.
The cumulative effect of these concerns stifles California’s competitiveness for job creation.
“We need to capitalize on projected business growth in Los Angeles County by addressing concerns about the existing level of taxes and fees along with rising energy costs, while simultaneously finding ways to strengthen public infrastructure needs vital to moving water, people, and goods,” says Don St. Clair, Ed. D., BizFed Chair and vice president at Woodbury University. “We have to seize this moment to consider public-private partnerships that could produce solutions that will keep and attract Los Angeles County employers and lead to a greater economic recovery.”
According to the 2014 BizFed poll, employers’ top issues are:1. Taxes and fees 2. Energy/fuel costs 3. Public infrastructure (waterways, roads, rail, etc.) 4. Affordable health care coverage 5. Government regulations/compliance
“Employers still face real struggles, particularly when it comes to taxes and fees,” says David Fleming, BizFed Founding Chair. “Small business owners rank personal income tax as having the greatest on their businesses, and nearly 25% say corporate income taxes and property taxes have big impact on their businesses. Lowering the tax burden that employers face has to be a top propriety if we want to make progress.”
“Job growth is ours to grab or give away,” says Tracy Rafter, CEO, BizFed. “We have to tackle the cumulative tax and fee burdens within Los Angeles County, the 88 cities in the county, and the state as a whole or all of this optimism will be catered by other regions and other states.
The BizFed poll guides nonpartisan conversations with officials across the government, private, and nonprofit sectors. A full look at the 2014 poll is available at http://www.bizfed.org. article courtesy of BizFed