Friday, October 22, 2010
California California’s double-digit unemployment rate will last through 2013, according to a new report from University of the Pacific.
Researchers at University of the Pacific in Stockton are pushing back their prediction for when an economic recovery will finally start to take hold in California. Their new outlook reflects a slowing national economy.
Economists at UOP’s Business Forecasting Center originally thought California’s jobless rate would start declining from double-digit levels by the end of next year.
“Now we see that stretching out to the end of 2013. And 2011 and 2012 are looking significantly slower,” said Jeff Michael, head of the center. He said the numbers don’t suggest a double-dip recession, but they do appear to forecast growth of less than 3 percenet in both personal income and gross state product.
But Michael says there are some bright spots. “Some of the southern California areas and the coastal areas have got some better recovery prospects,” he said.
He says Orange County and San Jose specifically are leading California’s recovery because both are high-tech manufacturing centers.
Meanwhile, he says the Sacramento area will continue to lag because of the ongoing housing crisis and cuts to state government jobs.