Another Strong Year Ahead For California Economy?

A new forecast projects the California economy is in for another strong year in 2015 – and, by 2016, could move from recovery to a new equilibrium.

The forecast from Stockton’s University of the Pacific projects California will see statewide job growth this year of 2.3 percent – about the same as last year.

“It looks like 2015 ought to continue along those lines – maybe a little better in some places than others, but sustained recovery and growth,” says economist UOP Jeff Michael. “And when we get to 2016, I think we can maybe stop talking about recovery and feel like we’ve finally healed most of the wounds from that episode.”

By then, Michael expects, job growth will begin to slow down to less than two percent. The unemployment rate will drop more slowly as well, stabilizing near six percent in 2017.

The forecast projects that growth in the coastal parts of the state will continue to be strong – and the inland areas will climb back as well.

The forecast projects even stronger job growth in Sacramento (2.6%), Modesto (3.3%) and Merced (2.7%) – with Stockton (2.3%) right at the statewide average.