California economy, job market face further cooling

0
108

[ad_1]


Growth in California’s job market is expected to weaken this year and in the coming years, according to the widely watched UCLA Anderson Forecast’s latest report Tuesday.

The Anderson Forecast now expects non-farm payroll jobs in California to increase 1.6 percent during 2017.

Last year, California’s job market grew by about 2 percent, state labor officials reported.

The Anderson Forecast said in December that California’s job market would grow by 1.8 percent in 2017, but it trimmed that estimate by March to 1.6 percent.

“The current forecast is slightly lower and pushed out in time than our previous one,” Jerry Nickelsburg, a senior economist with the Anderson Forecast, stated in the report Tuesday.

Gridlock in Washington, D.C. is a key factor.

“This reflects the difficulties that the Trump Administration is having in getting its stimulus packages passed,” Nickelsburg stated.

The 1.6 percent projected rate of 2017 payroll job growth in California is expected to be followed by 1.1 percent payroll growth in 2018 and 0.9 percent growth in 2019, according to the Anderson Forecast.

U.S. job growth is expected to be slightly weaker than California’s during 2017, expanding at an annual pace of 1.5 percent.

Consumers nationwide should brace for rising inflation and a greater burden from the cost of living, the Anderson Forecast stated.

“Our forecast is for a modest increase in the inflation rate and corresponding increases in interest rates keeping the real rate low,” Edward Leamer, director of the UCLA Anderson Forecast, stated in his outlook for the national economy.



[ad_2]

Source link