California’s Current and Future Job Market
California has had some disturbing economic news in the recent past. This is as a result of the tumultuous activities in the China markets. This news is particularly alarming since China is one of California’s primary trading partners. California has had a terrible drought, leaving half a million farmland acres in fallow. The state’s business climate has received an almost bottom financial ranking.
Conversely, the economic prediction for the state of California has shown something else. In fact, the job market and state’s economy seems to be growing at a faster rate than the other states in the United States. This is according to a recent report indicating a noticeable and continued trend to be anticipated over the next few years.
Recently, a survey was done as to finding any obstacles that would get in the way of this economic growth. Whether these obstacles are perceived or real, they pale in contrast to California’s position as a lure for sophisticated entrepreneurs, which is the nucleus for boom in technology and a trading partner with the Pacific Rim.
There is a simple explanation for all of this. People have a desire to live in the state of California because of the economic climate and relaxed setting. In addition, year round, the state has unique weather and geographical attractions that continue to attract wealthy immigrants and visitors from around the world.
Prediction of Job Market
Due to the recession, California experienced a higher unemployment rate than other states except for Nevada and Michigan. However, California rebounded quickly from the recession. According to many expert economists, the job projection for California looks good.
There is obvious growth that shows consistency in outpacing the entire United States throughout most of this year and 2017. This will bring the unemployment rate below the average high experienced in recent years.
In fact, some economists indicate that the rate of unemployment will be reduced to 4.8% by the time 2017 comes around. In the year 2010, the unemployment rate was more than 12%. This is a considerable difference to note.
Due to the regulatory environment in the state of California, many businesses find that they are almost at the bottom of the perceived rankings. In fact, California, in the past showed a ranking of 50 in the business community. The state was classified as being in deep economic trouble in the past due to the many regulations that prevented companies and entrepreneurs from doing business in the state.
While all states have ups and downs in their economies and while predictions are not precise, California shows noticeable signs of improving its financial look. However, according to economists, there are some challenges in the long term structure. This is primarily so because of the pension liabilities that remains unfunded for this state as well as the serious lack in the supply of housing. For that reason, the real estate market in this state is noticeably expensive than in the rest of the nation, forcing people to live elsewhere. However, many people don’t mind traveling long distances to rewarding jobs that could put them in better financial status.