Capitol Public Radio
Sacramento will continue to lag behind the rest of the state when it comes to economic recovery, according to a new report out today.
(Sacramento, CA) Tuesday, April 19, 2011
By Steve MilneEconomist Jeff Michael says the gap is widening between Sacramento and areas seeing robust growth like Silicon Valley.
"The gap has been apparent for a year now but it's just growing and part of that is due to the deepening recession in the Sacramento area."
Michael heads the Business Forecasting Center at University of the Pacific in Stockton.
He says Sacramento's economy is dependent on government jobs, which have been slashed because of budget cuts, and housing construction, which has been at a standstill since the foreclosure crisis hit.
"In the short-run things are certainly pretty bleak. It'll (Sacramento) be the worst performer in 2011 and 2012. In the long-run the area still has a lot of assets going for it."
…including, Michael says, a better education infrastructure than other parts of the state.
The Business Forecasting Center report projects Sacramento job growth will rebound in 2013.
"The gap has been apparent for a year now but it's just growing and part of that is due to the deepening recession in the Sacramento area."
Michael heads the Business Forecasting Center at University of the Pacific in Stockton.
He says Sacramento's economy is dependent on government jobs, which have been slashed because of budget cuts, and housing construction, which has been at a standstill since the foreclosure crisis hit.
"In the short-run things are certainly pretty bleak. It'll (Sacramento) be the worst performer in 2011 and 2012. In the long-run the area still has a lot of assets going for it."
…including, Michael says, a better education infrastructure than other parts of the state.
The Business Forecasting Center report projects Sacramento job growth will rebound in 2013.
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