LOS ANGELES, CA, August 25th, 2025 — The nonpartisan California Policy Lab released a new report today, which is the first of its kind to use unemployment claims data to map the broader labor market impacts of the January 2025 Palisades and Eaton wildfires on workers across Los Angeles. The analysis shows that unemployment claims surged not only in the fire zones but also among people living in neighborhoods far from the fires, especially South and Central L.A. There were also large increases in claims from workers in low-wage industries like Accommodations and Food Services, and workers with lower levels of education.
“Our analysis shows the economic impacts extended beyond the Palisades and Altadena, as workers who live in areas like South and Central L.A. but commuted to work in the fire areas also filed for unemployment in the aftermath of the fires,” explains report co-author Professor Till von Wachter, Faculty Director of the California Policy Lab at UCLA. “This report shows the critical role that unemployment insurance benefits can play in supporting people after natural disasters, and also provides insights that can be helpful for future disaster response planning and targeting relief to impacted people.”
“Our research revealed key differences in who was impacted by the fires,” adds report co-author Peter Mannino, Senior Data Analyst at the California Policy Lab. “Service sector workers and people with lower levels of formal education were the hardest hit by job losses after the fires.”
Key findings
● An estimated 6,300 – 8,700 employees in LA filed for regular unemployment insurance (UI) due to the wildfires, representing a 12%-17% increase from what would have been expected without the wildfires. Comparing this increase to the number of jobs in and near the wildfire perimeters shows that between 30% and 40% of workers who were potentially impacted by the fires filed for UI benefits.
● An additional 5,000 workers filed for the federal Disaster Unemployment Assistance program (DUA), including gig workers, independent contractors, and the self-employed, who are usually excluded from regular UI, though undocumented workers are excluded from both DUA and regular UI benefits.
● Commuters coming from other areas were also affected: While Central and South LA were untouched by the fires, there were large increases in UI claims being filed by workers who live in those areas, especially in neighborhoods where many residents commute to fire-affected areas.
● Low-wage industries were hit hardest, particularly Accommodation & Food Services and Healthcare & Social Assistance. There was a 50% higher increase in UI claim filing by workers with a high school diploma or less as compared to college-educated workers.
Background
The report uses administrative Unemployment Insurance (UI) claims data — accessed through a long-standing research partnership between the California Policy Lab and the California Employment Development Department (EDD) — to create a detailed picture of how wildfires ripple through local labor markets — both within and beyond the directly impacted areas.
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The California Policy Lab generates research insights for government impact. Through hands-on partnerships with government agencies, CPL performs rigorous research across issue silos and builds the data infrastructure necessary to improve programs and policies that millions of Californians rely on every day.