FOR IMMEDIATE RELEASE
October 1, 2025
Contact
Angela Herrera Perez, Senior Public Information Specialist
press@opportunity.lacounty.gov
Analysis from DEO and LAEDC spotlights the economic toll of the January 2025 wildfires and outlines early recovery trends
Study projects $5.2 to $10.1 billion in economic output lost and details recovery trends across affected communities and industries
Los Angeles, CA – The Los Angeles County Department of Economic Opportunity (DEO) and the Los Angeles County Economic Development Corporation (LAEDC)’s Institute for Applied Economics launched a year-long economic impact study with quarterly public webinars analyzing economic impacts of the January 2025 windstorms and wildfires and outlining the region’s recovery efforts. This economic impact study is funded through the California Jobs First initiative by the Governor’s Office of Business and Economic Development and Labor and Workforce Development Agency.
The first public webinar in a four-part series, held on Monday, September 15th, provided a data-driven overview of the January wildfires’ effects on businesses, workers, and communities. Supervisor Lindsey Horvath provided opening remarks. The analysis covered both the direct burn areas of the Eaton and Palisades fires and the broader Secondary Fire Areas (SFAs), which experienced significant disruption due to evacuation orders, smoke conditions, and business closures. Key findings include:
Economic Impacts and Structural Damage:
- The Eaton and Palisades wildfires destroyed more than 16,000 structures, including over 11,600 homes, 100 schools, and nearly 200 commercial buildings.
- Combined, the burn areas and SFAs affected over 6,800 businesses and more than 47,000 workers.
- Businesses in the burn areas generated $1.4 billion annually prior to the fires; those in SFAs accounted for $6.8 billion in annual revenue.
- The majority of secondary disruption occurred in the Eaton area, which represented 76% of affected businesses and 75% of job losses in SFAs.
Estimated Economic Losses (2025–2029):
- Total output losses across all affected zones are projected between $5.2 billion and $10.1 billion.
- Between 28,000 and 55,000 job-years are expected to be impacted.
- Labor income losses are estimated at $2.2 to $4.2 billion.
- Tax revenue losses could reach between $900 million and $1.6 billion.
Recovery Indicators:
- As of July 31st, 2025, 93% of filed insurance claims had been partially paid, totaling $20.4 billion.
- 95% of destroyed or damaged parcels have been cleared of debris within seven months.
- Nearly 800 rebuilding permits have been issued with an average processing time of 52 business days.
- Short-term rent spikes occurred in fire-adjacent ZIP codes, with rents returning to 2024 trend levels within six months.
- Housing listings and sales in affected communities did not show evidence of mass resident flight.
“The January wildfires have tested our communities in unimaginable ways — taking homes, livelihoods, and peace of mind from tens of thousands of Angelenos,” said Supervisor Lindsey P. Horvath. “This analysis makes clear the economic toll we are still reckoning with, but it also highlights the strength and resilience driving our recovery. We are not just rebuilding structures; we are rebuilding lives, jobs, and hope for the future. I’m grateful to the DEO and LAEDC for helping us ground this work in data so we can better target our recovery efforts and ensure that every community—especially those hit hardest—receives focused support and care.”
“As we continue the work of rebuilding after the January wildfires, this economic analysis underscores the profound impact on our communities—from lost homes and businesses to displaced jobs. It is critical that all levels of government understand these realities so resources can be directed where they are most needed. I remain committed to streamlining processes and advocating for policies that protect our residents and ease their path towards rebuilding their homes and lives,” said Los Angeles County Board of Supervisors Chair and Fifth District Supervisor, Kathryn Barger.
“The data makes clear what so many already know firsthand: the economic fallout from the January wildfires has been deep and widespread,” said Kelly LoBianco, Director of the LA County Department of Economic Opportunity. “But this analysis is more than a report—it’s a tool to guide targeted recovery. By understanding where losses are greatest, we can ensure resources reach the workers, businesses, and communities that need them most. DEO remains focused on an inclusive, equitable recovery, one that not only rebuilds but reimagines a more resilient economic future for LA County.”
“This analysis provides a clear picture of the economic impacts of the January wildfires and a baseline for measuring recovery over time. Through our collaboration with the Department of Economic Opportunity and other partners, LAEDC is committed to delivering data that helps policymakers and stakeholders allocate resources effectively and support a strong, coordinated recovery,” said Stephen Cheung, President and CEO of the LA County Economic Development Corporation (LAEDC).
The year-long study and quarterly webinar series will continue tracking key indicators, including business and workforce recovery, rebuilding progress, and housing and infrastructure restoration. Future sessions will focus on business and workforce disruptions, rebuilding costs and progress; workforce needs in recovery industries; housing market dynamics; and policy recommendations for long-term resilience and disaster mitigation.
A full recording and presentation materials from the first session are available HERE.
Visit https://opportunity.lacounty.gov/how-we-help/emergency-resources/ for information, resources, and services available to fire imp workers and businesses.
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About DEO:The LA County Department of Economic Opportunity (DEO) has a vision for a more equitable economy with thriving communities, inclusive and sustainable growth, and opportunity and mobility for all. The department, with its America’s Job Centers of California, Office of Small Business, and hundreds of programs and partners, creates quality jobs, helps small businesses and high-road employers start and grow, and builds vibrant communities and spaces. Stay connected with DEO! Follow @EconOppLA on Twitter, Facebook, and Instagram, subscribe to our newsletter, or visit opportunity.lacounty.gov to learn about DEO services.