In the article 1,000 LA Employees to be Laid Off, Los Angeles Mayor Antonio Villaraigosa has recently ordered the immediate lay-off of 1,000 city employees. The move is an attempt to help balance the city’s budget and the staggering $208 million budget gap.
Although the lay-offs were supposed to happen this Thursday, the city council voted unanimously to postpone any action on job cuts for 30 days while they explore other options.
Some 360 employees out of the 1,000 may be able to transfer to other positions and avoid losing their jobs. But overall, Mayor Villaraigosa believes that the lay-offs will not only improve the city’s credit rating but also its long-term fiscal health.
According to the city’s budget analyst Miguel Santana, the job layoffs are needed now otherwise the delay will only result in bigger job cuts in the future.
While California is clearly in the red when it comes to budget, another massive lay-off is hardly necessary to improve finances because that would only mean that there would be less people paying employment tax and more people relying on unemployment benefits.
With less taxpayers and more unemployed people who are draining the state’s resources, as well as less purchasing power from the public, the budget gap would just hurtle itself further down the quagmire.
Obviously, the last thing California needs now are more unemployed residents, why not just forego unemployment benefits and invest in building jobs that will give workers a chance to have actual and gainful employment?