March 12,2015 –
The UCLA Anderson Forecast for March calls for continued steady gains in employment through 2017 in California. “The increase in U.S. growth rates from construction, automobiles, and business investment, as well as higher consumer demand, will continue to fuel our local economy,” says Senior Economist Jerry Nickelsburg, author of the California forecast. Nickelsburg says that the result will be a steady decrease in the state’s unemployment rate over the next three years. He expects the state’s unemployment rate to be insignificantly different from the U.S. rate, at 5.1% by the end of 2017.
The estimate for the 2015 total employment growth is 2.4%, and 2.2% for 2016 and 1.5% for 2017. Payrolls will grow at about the same rate during the next three years. Real personal income growth is estimated to be 4.2% in 2015 and forecast to be 4.6% and 3.7% in 2016 and 2017, respectively. The unemployment rate will hover around 6.5% through the balance of 2015.