LABJ Insider: Business Optimism Declines

A new study by BizFed indicates that business uncertainty is at its highest since the onset of the Covid-19 pandemic and Los Angeles Community College District names Alberto J. Román as its new chancellor.

Business uncertainty is at its highest point since the Covid-19 pandemic struck, optimism has declined and regulatory pressure is a top concern for businesses, according to a study from the Los Angeles Business Federation, or BizFed.

Taxes and fees, government regulations, high interest rates and the cost of energy were among top concerns for business leaders.

“The gap between business optimism and pessimism is now the narrowest we’ve ever recorded,” Tracy Hernandez, chief executive of the group, said. “This is a loud alarm. The data paints a clear picture of a business community who are struggling with pressures that are not yet resonating with lawmakers.”

BizFed also found that smaller businesses are most concerned about taxes and basic costs, while larger employers were most concerned about compliance, wage increases and negative regional perceptions.

“This poll underscores the urgent need for policymakers to cut red tape, manage costs, and restore confidence in the region’s economic future,” Angela Gibson Shaw, BizFed’s chair, said in a statement.

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