The recent wildfires in Los Angeles have devasted several communities, destroying nearly 38,000 acres of land and burning down or damaging more than 16,000 structures. According to J.P. Morgan economist Abiel Reinhart, “The L.A. wildfires are shaping up to be the costliest climate disaster in U.S. history, which stems both from their size and the high value of the residential real estate they are destroying.” In addition to the tremendous loss in property, tens of thousands of jobs were lost, with workers employed by community small businesses and homeowners (restaurant workers, housecleaners, nannies, gardeners) taking the biggest hit.
As firefighters continue their work containing the fires, plans for rebuilding are being set in motion. This will mean a demand for skilled labor in several sectors, including:
Construction
According to data from the Bureau of Labor Statistics, the construction sector has historically seen employment growth of up to 10% in the 18 months following significant wildfires.
Professional and Business Services
The demand for architectural, engineering, and project management services is expected to rise to support rebuilding initiatives. This sector has previously experienced employment growth of up to 5% post-wildfires.
Manufacturing and Retail Trade
The need to replace destroyed goods and materials can increase activity in the manufacturing and retail sectors, contributing to job creation.
Insurance
The disaster has accelerated the number of claims filed, necessitating additional adjusters and processors to manage the workload. Additionally, the financial burden from the wildfires has put a microscope on the challenges within California’s insurance market. This may increase the need for risk assessment and policy management professionals to address the changing insurance landscape.
Healthcare
Unfortunately, the number of complications expected from breathing wildfire smoke containing toxins is expected to exacerbate pre-existing conditions such as asthma and chronic obstructive pulmonary disease (COPD) and possibly lead to the development of other conditions later in life. This may signal a growing demand for health professionals to treat a population with increasing health concerns.
The trauma and displacement caused by the fires will likely result in a growing need for mental health professionals to provide counseling and support to individuals affected by the disaster.
Public health professionals will also be needed to assess and mitigate environmental health risks, including exposure to hazardous materials and ensuring the safety of water and air quality.
The disruption of healthcare facilities and services has created a demand for healthcare administrators and support staff to coordinate recovery efforts, manage resources, and ensure continuity of care for displaced populations.
Private Equity
Many PE firms will be able to leverage capital to build their portfolios and profitability in the aftermath of the wildfires, and they will need to hire operators and administrators to run the companies they invest in. Those with distressed asset portfolios may acquire fire-damaged properties at discounted prices to rehabilitate and then sell or lease. Firms with investments in insurance and reinsurance companies may benefit from increased profitability due to demand for coverage. Others may Invest in companies that provide construction materials, equipment, and fire-resistant building materials or offer fire prevention technology or companies developing advanced data analytics, drones, and other technologies designed to improve disaster management and recovery efforts.
As the nation continues to support the wildfire containment, recovery, and rebuilding efforts, workers across various industries and professions will have opportunities to contribute to the area’s renewal and build-back strategy. With high-profile sports events awarded to Los Angeles on the horizon (2026 FIFA World Cup, 2027 Super Bowl, and 2028 Olympic and Paralympic Games), the demand for increased talent to accelerate rebuilding efforts looks promising.
About Human Capital Solutions
Human Capital Solutions (HCS) is a high-touch, boutique consulting firm specializing in Retained Executive Search, Professional Recruiting, and Professional Coaching. Our team of subject matter experts partners with organizations across the U.S. to engage and deploy human capital to achieve desired business outcomes. HCS specializes in Private Equity, Technology, Hospitality, Industrials, Life Sciences, and Healthcare executive search.