Forecast: Recession Will Extend Into Spring 2009

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(Sacramento, CA)
Monday, September 22, 2008

It’s from the Business Forecasting Center at the University of the Pacific in Stockton. 

Jeff Michael heads the center. He says the Sacramento area in particular will be hit hard because of a hiring slowdown by the region’s top employer…state government. 

"Usually that’s a pretty stable sector. So we do see some declines related to state government employment. It’s going to be nothing like the housing collapse in terms of the local economy. So Sacramento can look forward to some continued recession as well." 

Michael says the state is entering into the second half of a shallow but long economic recession. He says double-digit unemployment rates have made a return to most of the Central Valley…but will still remain below levels common in the 1990s.