The Center for Business and Policy Research at the University of the Pacific in Stockton released its California and Metro Forecast today. In it, the state economy is reportedly performing well, despite an uncertain policy environment.
Growth, according to the report, will be slower than recent years.
Highlights of the report include:
- Nonfarm apyrolls are projected to grow 1.7 percent in 2017 and 1.4 percent in 2018
- Unemployment rate is projected to decline to 4.5 percent by the end of 2017
- Real gross state product is forecast to grow 2.7 percent over the next 12 months
- Health services is now the largest employment sector in California, projected to add 40,000 positions in the next year
- Growth in the professional scientific and technical services area will slow, adding only 25,000 jobs in the next year compared to twice as much in previous years.
The report listed the most significant change coming in the form of population growth, which is slated to be lower due to housing shortages and lower immigration resulting from the current administration policies and lower birth rates.
Population growth will be about 250,000 people per year in 2018, a 0.6 percent growth, compared to 350,000 in the past few years, a 1 percent growth rate.