The quarterly University of California at Los Angeles’ (UCLA) Anderson Forecast predicts a significant slowing of California’s economic growth in 2007. The forecast contradicts revised employment figures released by California’s Employment Development Department (EDD), which shows the state’s economy stronger than expected in 2006.
According to EDD’s March revisions, 2006 job growth in California was 52,000 higher than initial estimates indicated. And construction labor, which was initially reported to have lost 15,700 jobs, lost only 2,700 in 2006.
UCLA economist Ryan Ratcliff, the author of the 2007 forecast, said, “We still expect to see substantial job losses in construction, and we’ve already seen more job losses in financial activities than we expected—the real estate portion of the economy will still be a major source of drag in 2007.”
Ratcliff also reported that job growth will likely slow significantly in 2007, although probably not enough to provoke a recession.