REPORT EXAMINES LAG IN SOUTH L.A. ECONOMY.

Byline: Evan Pondel Staff Writer

South Los Angeles continues to face several obstacles that are stunting economic growth, including a 1.2 percent industrial vacancy rate and a dearth of developable land, according to a report released Thursday by the Los Angeles County Economic Development Corp.

South Los Angeles is among the few areas in the region that has not experienced a surge of economic activity for at least a decade. The impediments are widely varied, but the general economic picture remains relatively unchanged. South Los Angeles still lacks an economic development entity and most residents are accustomed to traveling outside the community for wares.

``People have been trying to figure out what to do for a long time. And right now leaders in the community need to get together and start discussing the largest employment segment,'' said Jack Kyser, chief economist for the LAEDC.

Manufacturing is the largest employment sector in South Los Angeles, with a bulk of the work in apparel and textiles. The industry has been under increasing pressure from imports, eliminating many jobs. The furniture industry has also been feeling pinched by imports, although there has been an effort to develop a ``furniture manufacturing cluster'' in the region, Kyser said.

Despite general instability, employment levels have been more resilient. South Los Angeles is expected to add 1,329 jobs this year, roughly a 1.4 percent increase when compared with last year's levels. But the unemployment rate is still staggeringly high, with 12.2 percent of the population unemployed in the Florence-Graham area and 11 percent unemployed in Willowbrook, according to April 2004 employment data. Los Angeles County's unemployment rate was 6.2 percent in the same period.

Average annual wages in South Los Angeles reached $29,221 in 2003 versus $22,040 more than a decade ago. Meanwhile, the presence of business establishments declined 5.7 percent to 5,492 between 1995 and 2003.

Wal-Mart, which recently moved into the Baldwin Hills Crenshaw Plaza, continues to bolster the presence of businesses in South Los Angeles. Magic Johnson followed Wal-Mart's lead and developed a multiscreen movie complex behind the plaza.

Local business leaders are encouraged by the progress, even though they say behemoths like Wal-Mart detract from the smaller businesses.

Pat Jackson, who owns a consignment shop called The Perfect Solution, is frustrated that her South Los Angeles neighbors don't realize that they can find better deals at some of the smaller stores. ``The problem is people are afraid of walking into stores here that don't have facades like those in Beverly Hills,'' she said. ``We know there is money here, especially with the amount of success at the movie theaters and places like Home Depot. But we need to educate people so they are not afraid to frequent smaller businesses.''

Jackson and other business owners are reaching out to local churches for help.

Nationwide Insurance on Crenshaw Boulevard is attempting to educate the community about the benefits of coverage by sponsoring seminars at neighborhood churches.

``There are a lot of working class people here. And they are listening to us,'' said Lucious Wilder, a salesman at Nationwide. ``Overall, I'd say things are looking better around here. The streets are cleaner and police have increased their presence.''

Housing prices are also significantly lower in South Los Angeles than in other communities. Craftsman and Spanish-style homes could cost between $150,000 and $250,000 in the region.

``Obviously, this is an area you don't just walk away from,'' Kyser said. ``But we need to address things like education and crime in the region.''

Evan Pondel, [phone]

evan.pondel(at)dailynews.com