The Myths and Realities about Jobs and the Economy in Oakland

MYTH: Oakland (and the Bay Area) is in an economic slump and it is very difficult to attract new businesses to our city.

Reality: The number of businesses in Oakland has increased 18,697 to 26,189 in the last three years (http://www.business2oakland.com/main/laborforce.htm).

MYTH: Other East Bay cities perform better economically than Oakland.

Reality: Oakland�s retail sales are 76% greater than the City of Emeryville and 38% greater than the City of Walnut Creek.

(http://www.business2oakland.com/main/localeconomy.htm)

� Oakland�s Gross Metropolitan Product (GMP) is about $100 billion and ranks in the top twenty of all cities in the United States, and is the 84^th largest city in the world. (http://www.business2oakland.com/main/localeconomy.htm)

MYTH: Not many jobs are created or located here in Oakland.

Reality: Oakland is expected to see a significant increase in new job creation in the next 20 years. An additional 50,000 jobs will be created in the next 20 years

(http://www.business2oakland.com/main/laborforce.htm)

� Oakland is the third largest job center in the Bay Area after San Francisco and San Jose (http://www.business2oakland.com/main/laborforce.htm)

MYTH: Everyone who wants a job can get one.

Reality: Oakland�s unemployment rate is actually much higher than the state and national average. Oakland�s rate is 10.6% while the state-wide rate is 6.6% and the national rate is 6.4% (http://www.business2oakland.com/main/laborforce.htm)

MYTH: People who work should be able to afford to live in Oakland.

Reality: Almost half of Oakland families have a household income of less than $35,000 a year.

� 43.7% of the families in Oakland live on less than $35,000 a year

� The average rent for a two bedroom apartment in Oakland is $1,353 (annual rent is $16,500) and rent for a three bedroom apartment is $1,743 (annual rent is $20,916)

� The cost of an adult bus pass is $50 and a youth bus pass is $15 (http://factfinder.census.gov).

MYTH: There is no relationship between crime and employment.

Reality: When the employment rate improved, the crime level decreased.

� When the unemployment rate was 5% in 1999 the total number of murders in Oakland was 60. But when the unemployment rate was over 10% in 2002 the total number of murders almost doubled to 115.

� During 1993-2000 there was a steady increase in the employment rate in Oakland (5% over the seven years) and a steady decrease in the murder rate (11% over the seven years) (2001 Annual Report, Oakland Police Department, California Employment Development Department).

MYTH: If we want to lower the crime rate in Oakland, we need to hire more police officers.

Reality: When the number of police officers on the force increased, there was no decrease in the level of crime in Oakland.

� Between 1995 and 1996 when the police force in Oakland decreased from 500 to 450 officers, the murder rate also decreased from 150 to 100 homicides; but between 1999-2000 when Oakland increased the number of police officers from 500 to 600 officers, the murder rate increased from 75-100 (2001 Annual Report, Oakland Police Department, California Employment Development Department).

MYTH: There are more than enough programs for youth and adults to find jobs.

Reality: Not only are these programs having their funding cut severely, they also only serve a small segment of the population.

� In the past two years, the City youth employment programs have served no more than 500 youth in total and the adult programs have served under 800 individuals during the same period (City of Oakland Agenda Report: A Job Training Performance Standards Report for the Period Ending March 31, 2003)

MYTH: There�s just not enough money in Oakland to create more jobs.

Reality: In the past year, Oakland provided companies with almost $13 million in business loans, which resulted in only 214 Oakland residents being hired to work in these businesses(City of Oakland Agenda Report: Informational Report Regarding Status of the City�s and Redevelopment Agency�s Commercial and Residential Loan Programs, Including Job Creation Resulting From Commercial Lending).