Joblessness jumped in LA County after January’s fires, new report finds

Unemployment was up significantly in L.A. County after January’s fires, according to a new report from University of California researchers.

About 11,000 workers filed for unemployment benefits after January’s fires — a 12% to 17% jump in claims from before the fires. Researchers analyzed unemployment insurance data to better understand the economic landscape after this year’s disaster.

While most affected workers lived in or close to the burn zones, there was a significant spike in claims from commuters from Central L.A. and South L.A. as well, said UCLA economics professor Till von Wachter, one of the report’s authors.

“It’s a shock to the entire area,” von Wachter said. “Economically the shock spreads because of the individuals that were commuting to work in these areas.”

Claims from restaurants, brick-and-mortar stores and social service fields were most common, and most of those affected workers were Black and Latino, according to the report.

There was also a spike in claims from self-employed workers, who became eligible for unemployment insurance when the fires were declared a federal disaster by former President Joe Biden.

More than 5,200 workers who were otherwise ineligible for unemployment benefits claimed Disaster Unemployment Assistance benefits after the fires.

He said many self-employed, independent contractors and gig workers don’t know they may be eligible for unemployment insurance when a federal disaster is declared.

Just 30% to 40% of fire-affected workers filed claims at all, according to the August report. The window to apply has closed.

“Raising awareness about unemployment insurance and disaster unemployment assistance in particular is a very important thing,” von Wachter said, “especially since we know that these fires are likely going to be recurring throughout California.”