SACRAMENTO (CBS13) — The magical mo-jo known as the Downtown Sacramento resurgence has been stopped cold by the coronavirus. Now we're learning how bad the numbers might be when it comes to unemployment.
Jeff Michael works with the Center for Business and Policy Research at the University of Pacific.
"I mean, Downtown is a good example of a hard-hit area," Michael said.
The center projects peak unemployment in the Sacramento area will reach about 18.6% next month with approximately 230,000 jobs lost in our four-county area. Before the pandemic, the unemployment rate in the Sacramento region was 3.8%.
But there is some good news. Even though the unemployment numbers weren't as bad during the '08 - '09 recession — Sacramento was at 12% and Stockton was at 17% — the bounce back from this should be way quicker.
"This is more of a temporary event, and while a huge economic shock, we don't expect them to stay at this elevated level for multiple years," Michael said.
As for which area will be hit the hardest when it comes to jobs, experts say Napa's wine country is expected to see peak unemployment rate at 29% with three out of every ten jobs lost.
The hangover from this rough ride isn't expected to linger for years.
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