September 24, 2004

Forecast: Stronger job growth ahead for region

Full Report
The Sacramento Region’s job market should improve markedly over the next year, bouncing back from current job losses and reaching 3 percent growth by next fall, according to the quarterly CSUS Forecast from the California Institute for County Government at California State University, Sacramento.

The forecast says the growth will be led by gains in the private sector, particularly construction, as government employment remains weak in the face of ongoing budget deficits. Manufacturing, it says, is poised to return to positive growth after shedding jobs for more than three years.

Overall, the region continues to struggle after performing somewhat better than the rest of the state and nation in recent years. The region’s job growth rate in August was - 0.11 percent, according to initial figures from the Employment Development Department, down from 1.17 percent last August. The state, meanwhile, has had positive job growth all year and saw 0.76 percent growth in August. The national growth rate in August was 1.35 percent.

The quarterly CSUS Forecast of the region's job outlook uses an econometric model of the six-county Capital Region with more than two dozen variables.

More information is available from Matthew Newman, director of the California Institute for County Government, at (916) 324-0796, or at the institute’s website at www.cicg.org. Additional media assistance is available by contacting the Sacramento State public affairs office at (916) 278-6156.

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