Santa Monica's economy is thriving despite the 2001 downturn. An estimated 16,000 businesses provide around 70,000 jobs, and collectively they generate almost $8.4 billion in gross annual income. Businesses are diverse, with the professional, scientific, and technical sectors providing the most jobs, followed by (in decreasing order) healthcare and social assistance (including schools and local government); retail trade; information; arts, entertainment and recreation; real estate; and accommodation and food services. There are many small businesses and some large companies. Mid-sized companies, bringing an added climate of stability, provide the majority of jobs.
The entire Westside has a large resident workforce of skilled "knowledge workers"; over 60% of Santa Monica's 50,000 strong labor force works in managerial, professional, scientific, high tech, software, or related fields.
Tourism makes a significant contribution to the economy and lifestyle of this vibrant beachfront community. Santa Monica's gorgeous beaches, exciting pier, excellent retail, restaurant, and entertainment venues, and abundant facilities attract over 3 million people annually from outside Los Angeles County. Visitors spend around $8 million yearly, and bring in around $20 million in hotel tax revenues. Tourism provides around 12,000 jobs for local residents in the retail trade, accommodation, and food services sectors.
The entertainment industry has expanded since 2001's slowdown (in anticipation of a general strike), and Santa Monica's post-production sector is enjoying a current boom.
The City of Santa Monica has experienced a steady growth in revenue from taxable retail sales, illustrating the health of the business community in general, and that of retail sales in particular. Highest revenue producing areas within retail sales were new car sales, followed by restaurants and apparel. Each of Santa Monica's several retail districts has its own business organization; these develop and administer special "business improvement districts."
Santa Monica's largest employers (in order of the largest to smallest) are: The City of Santa Monica, St. John's Health Center, The Macerich Company (real estate investment), Fremont General Corporation (property and casualty insurance), Entravision Communications Corporation (diversified media), Santa Monica/UCLA Hospital, Santa Monica College, Metro-Goldwyn Mayer, Inc., The Rand Corporation (research), Santa Monica/Malibu Unified School District, Liberty Livewire Corporation (post-production), Specialty Laboratories (biotech research), Activision, Inc. (entertainment products developer), and E.T. Whitehall (hospitality).
Pacific Palisades is primarily a residential community, and many commute short distances to nearby Santa Monica or surrounding areas to work. The entertainment industry provides the exception to this rule?numerous post-production houses, film companies, public relations firms, and production companies have chosen Pacific Palisades as their home. Local business directories contain screenwriters and composers. The "Village" town center also provides employment, as do local schools and medical and social services.
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