UCLA Anderson_logo

The state’s coastal regions see healthy job growth while inland areas are still struggling to recover, the UCLA Anderson Forecast says.

By Shan Li and Andrew Khouri
December 5, 2013, 1:00 a.m.

California continues to be a story of two economies: coastal regions with healthy job growth and inland areas that are still struggling to recover, according to a UCLA report released Thursday.

UCLA economists said in their quarterly forecast that coastal counties stretching from Marin to San Diego have enjoyed employment gains that outpaced the U.S. In contrast, inland areas such as the San Joaquin Valley and the East Bay are showing little or even negative growth.

Years of economic turmoil have especially been hard on the Inland Empire, which includes Riverside and San Bernardino counties. The region’s October unemployment rate was 9.8%, down from 11.7% a year earlier. But its jobless levels were still well above the 7% in San Diego County and 5.8% in Orange County.

“The inland regions have yet to find a new engine of growth,” said Jerry Nickelsburg, senior economist at the UCLA Anderson Forecast. They “have historically depended on sectors that have not been growing in this recovery … which means conditions of relative stagnation.”

Nickelsburg likened those areas to the “Appalachia of yore: anemic to no growth and dominated by lower wage employment.” UCLA researchers dubbed these hard-luck regions “Californillachia.”

Inland regions have long depended on sectors that have yet to come roaring back. In inland counties, for example, the government and construction industries traditionally represent 25% to 35% of all jobs; many of these sectors have shed positions in the last 12 months, the forecast said.

To read entire story, click here.