The California economy continues to generate mixed results as certain sectors begin to show signs of solid recovery (technology, agriculture, tourism, and health care) relative to other sectors that continue to struggle (residential construction, retail, and business services). The state continues to recover from the real estate overhang with persistently high foreclosure rates and a consumer looking to continue to de-lever.
According to the University of the Pacific Business Forecasting center (UOP), job growth will remain at a 1.0 percent to 2.0 percent annual pace through 2013, enough to keep pace with the labor force growth but too slow to bring the California unemployment rate below 10 percent until the end of 2014. Payroll jobs bottomed out last summer nearly 1.34 million jobs below their 15.2 million job peak in summer 2007. Since then, California has recovered 250,600 jobs, replacing less than one out of every five jobs lost.