California’s economy will grow faster this year than the national economy, and unemployment will drop to 5% in early 2017, according to a new report by the UCLA Anderson Forecast.
Personal income in California will increase more slowly than it has in recent years, when the state’s economy was bouncing back from the high unemployment of the recession.
In 2016, personal income in California will grow 3.6%, compared with 4.5% in 2015, the report said.
“It’s not worrying. It’s actually an encouraging sign,” said Jerry Nickelsburg, an economist at UCLA and coauthor of the report. “The fact that we are getting close to full employment means we should be growing at a slower rate, unless there is a faster growth in innovation and capital accumulation.”
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