UCLA Forecast: Stimulus Dollars To Fuel Recovery, But Jobs Outlook Still Cloudy
WESTWOOD (CBSLA) - After a dismal year, a new UCLA analysis shows the economic forecast is looking at least a little golden for California.
The latest UCLA Anderson Forecast predicts the Golden State could possibly have one of the strongest years of growth in the last 60 years, but that's because it's starting at such a low point.
The forecast shows the state recovering faster than the rest of the country, even though more restrictive COVID measures were in place.
The state's strong construction, scientific and technical services sectors are driving the economic rebound more rapidly than in past recessions.
However, the leisure and hospitality sectors will be much slower to recover - and business leaders are worried.
"We do not expect any return of international tourism," said Jerry Nickelsburg, Director, UCLA Anderson Forecast, Professor of Economics.
Tracy Hernandez, CEO of the LA County Business Federation, says it's not yet clear if jobs will rebound with consumer spending.
"I think the business will respond with consumers' already pent-up demand...but jobs associated with it, let's see if they come roaring back or it's a modified version," said Hernandez.
UCLA economists say it could've been much worse if the government hadn't stepped in to help with the Paycheck Protection Program and stimulus checks.