INDICATOR

 STATUS

Economic diversity is promoted as a means to achieve stability. A diverse economic framework creates strength in the community because the community does not rely on a single economic sector too heavily. This insulates the community from negative repercussions should any significant segment of the economy experience a serious downturn.
 
Santa Monica measures economic diversity as a percent of the total economic activity/ output by business sector. It is expressed as a percent of total wages.  The target for this indicator is for no single sector to be greater than 25% of the total economic activity/output in the city.  Additionally, the target is for the top three sectors to be less than 50% of the total economic activity/output.

The business environment in the city is diverse. Between 2004 and 2007 no single sector of the economy represented more than 25% of the total. The top three sectors were Professional, Science and Technology, Information, and Finance & Insurance. The Professional, Science and Technology Sector has represented between 18% and 20% of payroll during those years.  The Information Sector ranged between 16% and 20%.  The Finance and Insurance sector displaced the Healthcare sector in third position in 2005 and has remained in third place, comprising between 9-12% of the total.  In 2007, the other sectors represent about 50% of the total payroll of businesses in the city, still barely meeting the targets for this indicator.

In 2008, the city’s Office of Sustainability and the Environment in concert with the Housing and Economic Development, Planning and Community Development, Environmental and Public Works Management departments and the Sustainable City Task Force, has commissioned the development of a Santa Monica Strategy for a Sustainable Local Economy.  The purpose of the Strategy for a Sustainable Local Economy is to ensure the long-term viability and sustainability of our local economy; and to attract and retain businesses to Santa Monica that contribute to the overall environmental, economic and social sustainability of our community.  This study will define and develop approaches to enrich the sustainable aspect of the City’s economy; and will complement a strategic economic development study being conducted concurrently as part of the City’s Land Use and Circulation Elements update of the City’s General Plan.

The findings of the study are expected during 2009.

● Santa Monica is an economically successful city with generally high-paying jobs.  The average wages are more than 25% higher than that of Los Angeles County.
● There are an estimated 78,000 jobs in Santa Monica, generating a combined payroll of more than $5.6 Billion in 2007. 
● Santa Monica has a large resident workforce of skilled "knowledge workers."  Over 60% of Santa Monica residents work in managerial, professional, and related occupations.