In a great front-page-above-the-fold article, Slowing U.S. economy has ripple effect in California (Sacramento Bee, June 2), Dale Kasler provides a well rounded perspective on the implications of the disappointing May national job numbers for California and the Sacramento area. Weak job growth at the national level is primarily associated with economic troubles abroad—principally Europe and China. This likely explains a “flattening out of the export trade from California.”
Another recession is not likely, though, given that the state is still benefiting from a robust high tech sectors and a housing market that at long last may be turning around—even in the Sacramento area.
- “The U.S. slowdown is likely to take some of the edge off California’s job growth…”
- “One of California’s top-performing sectors, exports, is already seeing the effects of the troubles engulfing China, Europe, Brazil and other key trading partners.”
- “Despite problems at the national level, [Sung Won] Sohn said California should benefit from the booming technology sector and the fledgling recovery in the housing market – two of its most vital industries.”
However, the outlook for the state’s Capital region is mixed. While it is still hamstrung by state budget issues, it is also showing signs of improvement in the real estate,
- “Prices of single-family homes have risen in Sacramento County for four straight months,…”
- “There are 100 fewer Sacramentans holding payroll jobs than a year ago…”