California’s grim forecast: State will lose 200,000 more jobs
June 26, 2009
SACRAMENTO, Calif. and#8212; Economic forecasters predict California will lose another 200,000 jobs before the reces sion eases.
The University of the Pacificand#8217;s Business Forecasting Center projects the stateand#8217;s unemployment rate will peak at 12.3 percent early next year and be stuck in double digits through 2011.
Statewide unemployment reached a modern record of 11.5 percent in May.
University forecasters said Wednesday the Central Valley will likely face particular harm from tax increases and likely state and local government budget cuts. Legislators are try ing to close a $24.3 billion hole in the state budget.
Forecasters expect a quicker recovery, by mid-2012, in the San Francisco Bay area. Sacramento isnand#8217;t expected to recover to pre-recession employ ment levels until late 2013.