California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute

No surprises, but unemployment in California will remain high created by the
‘Great Recession’ according to a UCLA quarterly forecast.

The outlook for the balance of 2010 is for little or no growth in the state,
with the economy picking up speed slightly by the beginning of next year,
according to the forecast. More normal growth rates for California should
be in place by the middle of 2011.

The keys to California’s recovery are:

       •       A growing demand for manufactured and agricultural goods from outside 
               the state
       •       The recovery of U.S. consumption, 
       •       Increased public works construction
       •       Increased investment in business equipment and software

The UCLA Anderson Forecast calls for employment in 2010 to climb but not to
exceed levels of 2009. Once employment growth returns in 2011, employment will
begin to grow faster than the labor force at a 2.3 percent rate and the
unemployment rate will begin to fall, it predicts.

The state’s unemployment rate – currently at 12.5 percent – will fall slowly
through the balance of this year and should average 11.8 percent for 2010.
Though the state’s economy will be growing, it won’t be generating enough
jobs to push the unemployment rate below double-digits until 2012, the report
says. Real personal income growth is forecast to be 1.3 percent in 2010 and
3.7 percent and 4.5 percent in 2011 and 2012 respectively.

I am Tim Johnson and this has been the California Business Minute.