California demonstrated its economic resilience throughout 2013 and the first quarter of 2014, despite lingering effects of the Great Recession, higher state tax rates, federal government shutdown and the fierce debt ceiling debate in late 2013. The state added 447,400 nonfarm payroll jobs in 2013 and 1.3 million jobs from the end of recession through April 2014, according to California Employment Development Department. The state unemployment rate in April 2014 dropped sharply to 7.8 percent from 8.1 percent a month earlier and from 9.1 percent a year ago, narrowing the unemployment rate gap with the nation.
California’s economy will continue to expand at a respectable pace in 2014 and 2015, despite the drought and outsized economic gains over the past several years. We expect 334,000 additional nonfarm jobs in 2014 and 356,000 jobs in 2015 in California. Total nonfarm employment in California is projected to grow by 2.2 percent in 2014 and 2.3 percent in 2015, faster than projected national nonfarm employment growth for both years. Nearly two thirds of those jobs will be created in professional & business services, leisure & hospitality, health and educational services sectors. The Bay Area is projected to grow the fastest of any of the four regions of the state over the next few years, including Southern California, the Central Valley, and the Central Coast of California. California’s unemployment rate is forecast to average 6.8 percent in 2015.
Read the full report here: CA Regional Outlook Report_June_2014
Tags: California, economy