Approximately 7,000 jobs, accounting for 15% of the city’s 50,000 employees, are expected to be eliminated at LA City Hall.
The LA City Council has taken the initiative to eliminate most of the unfilled vacancies across the city’s departments and agencies and is currently analyzing the potential aftermath.
The council concluded at its meeting held in Van Nuys on January 26 that it makes more sense to save the city money by dividing up the work of currently vacant positions in the public sector within departments rather than waiting indefinitely for new applicants.
As of the end of last year, City Hall was facing a severe labor shortage, with 20 percent of its positions unfilled at Los Angeles International Airport (LAX) and 16 percent unfilled at the LA Police Department.
This situation has arisen because the city’s budgets are strained, making it challenging to guarantee salaries for new hires. City tax revenues are projected to be $158 million short of expectations this year, but spending is expected to increase by about $143 million at current levels.
On top of that, the police department is facing an additional $75 million in labor costs after last year’s pay raise for officers was guaranteed for four years. Additionally, the city has agreed to public employee unions’ demands, promising a 24% salary increase over the next six years for all other tenured employees, excluding those in LA’s water and power, police, and fire departments.
This is anticipated to cost the city tens of millions of dollars annually. The Fire Department is currently in the midst of negotiations and is expected to make a similar deal increase as the Police Department.
City Administrative Officer Matt Szabo in a report to the City Council said, “Given this situation, we would be in a much smoother financial position if we slowed or eliminated hiring for ‘non-critical’ positions.”
The council members unanimously approved the administration’s proposal.
“I think it’s very prudent to eliminate positions that are currently in place,” said Councilmember Bob Blumenfield of District 3, “but I believe it’s more meaningful that we don’t have to lay off people who are currently working for financial reasons.”
However, council members did not discuss how the eliminated positions would be restored in the future when the financial situation improves or the workload on existing employees and the following reduction in public services.
For those who watched the council’s discussion, it was a mixed bag. “I think it’s hard to expect city services will be provided properly if thousands of government employees are eliminated,” said Seokhyun Kim, 55, who owns a restaurant in LA. “I hope they will find a way to expand employment if the economy stabilizes.”
Based on the council’s instructions, the Office of the City Administrative Officer will refine the list of positions that can be eliminated shortly and bring it to the council for final approval.
Currently, the city’s job site lists over 100 professional positions, excluding those in the fire and police departments, totaling an estimated 900 openings.
BY BRIAN CHOI, HOONSIK WOO [ichoi@koreadaily.com]
