Report: California Economy Is On Road To Recovery

SACRAMENTO, Calif. (AP) — A new report says California is on the road to economic recovery but should expect a long and bumpy ride, with double-digit unemployment likely to continue through 2012.

The report issued Tuesday by Beacon Economics says lingering effects of the recession will keep the recovery slow in California. Rising international trade and other job gains are positive signs, but there has been little growth in sectors tied to the hard-hit housing market.

California has seen a much smaller exodus of residents than during the previous recession in the 1990s. The San Rafael-based economic forecasting firm says that is in part because the recession was widespread and homes have become more affordable.

Nationally, the forecast warns of another slowdown — and possibly a slide back into recession — in 2013.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Daniel Prall

    Nothing is even close to being affordable.

    • D. Mory

      Oh…. sure it is. And gasoline prices will be at $2.00 by summertime, lol. Everything is peachy here in the golden state.

  • Lick Me

    Recession Recovery reports are full of Sh!t. We all know they don’t want Negative publicity as it halts any economic recovery efforts & strikes fear in the consumers from spending $$$.

    This is a different Recession compare to past Recessions coz a lot of Businesses ‘closed’ during this Recession. it is awful times now. Past Recessions, they just laid off workers & when things start to pick up, they re-hire workers. This is different from the past, very different.

  • LT

    Until Caliornia gets off the back of business with all the stupid anti-employer laws and regulations, gets public sector union pensions under control and addresses rampant illegal immigration, there will be no recovery.

    And, by the way, forget about further raising taxes!


    • valgal999

      So true we have more red tape than any other state not to mention the outragious franchise tax. instead of encouraging small business owners to open and hire they are bending over backwords to make sure this does not happen $800 base fran tax for corp. and only about $140 for Nevada. lol

      • John

        I agree with the red tape.. I was trying to source LA for a product that my business carries. The company “required” a license that my state does not use to prove that the purchase was for business rather than personal. I guess they thought I was actually going to use q 1500 of this item myself, lol. They would not “let me in” to make the purchase and I went somewhere else. Is that what its like in CA, specifically LA?

  • livefromreno

    Who cares, California has been ruined beyond repair and is nearly uninhabitable unless you are an illegal woman on welfare with five kids and a boyfriend working for cash!!

  • KeithS

    Agree fully with the idea of this so called recovery being nothing more than a PR ploy. First, the ACTUAL unemployment rate is probably closer to 18-20% not the reported 12%. It leaves out the 18-25’s that have not been able to enter the workplace and all those who have given up. Second, any bump in spending, etc is natural because of one thing-All those people who didn’t lose their jobs in 2009 or 2010 have decided they won’t lose their jobs for at least another year and therefore decide to spend on some fun things. I hate it when they discuss it like things are getting better when it is simply those who have survived layoffs are deciding they better spend money now while they have it. Once another round of layoffs is announced or those people stop going out, then this so-called “slip back into recession” will begin, just as they say it will. .

    And LT is so right on that starting a new business in California is almost impossible due to so much hassle. And new business is the ONLY way for an economic rebound to even begin.

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