From Disruption to Direction: LA County’s Economic Outlook

What’s next for the Los Angeles economy? In this interview, Stephen Cheung, President & CEO of LAEDC, discusses the region’s growth despite a challenging 2025 and unpacks the key issues shaping 2026—from workforce and affordability to AI and global uncertainty. Here’s a recap of the conversation:

After a year marked by wildfires, global tensions, tariffs, and shifting policies, Los Angeles County’s economy proved something important in 2025: its resilience.

Despite these challenges, the region still grew by 2.4%, with an economy now exceeding $1 trillion—making it one of the largest in the world.

Strength in Diversity

Los Angeles doesn’t rely on a single industry—it thrives on many.

From entertainment and aerospace to bioscience and trade, this diversity allows the region to absorb shocks and continue growing. That balance is central to LAEDC’s mission: creating good jobs and expanding opportunity across the region.

A Critical Challenge: Population Loss

Beneath that growth is a concern: population decline.

LA County has lost about 400,000 residents since before the pandemic, shrinking its workforce and economic base.

If left unchecked, this can create a cycle—fewer people, fewer jobs, less investment. The solution is clear: retain talent, attract business, and create opportunity.

The Cost of Doing Business

High housing, energy, and operational costs remain key challenges.

The path forward isn’t quick fixes—it’s long-term investment:

• Infrastructure improvements

• Streamlined permitting

• Smarter incentives

At the same time, Los Angeles offers something others can’t: talent, access, and global connectivity.

“Cheaper is not better.”

Opportunity Ahead: AI and LA28

Artificial intelligence presents both risk and opportunity, but like past innovations, it can enhance—not replace—human potential when guided correctly.

Meanwhile, the 2028 Olympics offer a major boost:

• Up to $18 billion in economic impact

• Global visibility

• Opportunities for local businesses

Looking Forward

2026 may bring uncertainty, but Los Angeles is built to adapt.

With its talent pipeline, global trade infrastructure, and industry diversity, the region is positioned not just to weather disruption—but to turn it into direction.