California

Chris Kirkham
September 30, 2015

California’s economic growth will continue to outpace the rest of the nation over the next five years, according to a new forecast, though the expansion is expected to slow after next year.

Despite recent turmoil in the financial markets and slowing growth in China, the Los Angeles County Economic Development Corp.’s annual forecast predicted continued job growth and economic output in the state through 2020.

Job gains next year will continue to be driven by growth in construction, professional and technical services, and transportation and warehousing tied to international trade, the report found.

The forecast from the LAEDC expects job growth of 2.9% this year and 2.4% next year, compared with 2.1% and 1.8% for the nation overall. A similar report released this week by the UCLA Anderson Forecast pegged job growth in California at 2.2% next year and 1.4% in 2017.

The UCLA report also predicted that California’s unemployment rate will continue to dip to 4.8% in 2017, the same rate as the U.S. overall. California’s unemployment rate is currently at 6.1%, higher than the U.S. rate of 5.1%.

In Southern California, the fastest job gains through 2020 are expected in the Inland Empire, followed by Orange County, Ventura County and Los Angeles County. Employment growth in Los Angeles County is typically slower than other parts of the Southland because of its sheer size.

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