California’s economy staging strong comeback

Current statistics clearly indicate that California is on the road to recovery, and despite reports in the popular press, the state is not headed for a second recession over the short run.

By ·

Although its economic recovery got off to a lackluster start, California has recently started to outpace the United States.

According to Jock O’Connell, Beacon Economics’ International Trade Adviser, current statistics clearly indicate that California is on the road to recovery, and despite reports in the popular press, the state is not headed for a second recession over the short run.

“In fact, the labor markets have made a manifest turn for the better – adding more than 2.2 percent to its nonfarm payrolls since hitting bottom in September 2010,” he said.

“In addition, this growth is occurring despite continued job losses in the government sector. Separate out private sector employment, and the state has done even better, posting 2.5 percent growth over the same period.”

O’Connell said that this equates to roughly 250,000 jobs – clearly not enough to correct the 1.3 million jobs lost during the Great Recession, but a steady move in the right direction and a far cry from another recession.

“It is also important to keep in mind that job growth is typically the last thing to turn around in a recovery, which suggests that the underlying fundamentals of the California economy are growing even faster,” said O’Connell.

Beacon Economics maintained that consumer spending is a prime example as consumers have shown steady increases in spending over the past two years almost consecutively. And while this is true both in California and the U.S., taxable sales in the Golden State have risen by more than 17 percent since their trough in the second quarter of 2009.

That compares with 15.7 percent in the U.S. overall in terms of goods purchases on a nominal basis. This extra growth in California has developed despite the fact that the state fell nearly twice as much as the nation overall (-19 percent vs. -9.7 percent) and that California hit bottom one quarter late.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

Global · Global Trade · Trade · All Topics
Latest Whitepaper
eBook: Why Multi-Tier Supplier Collaboration is More Important Now
Explore the benefits of supplier collaboration including sharing demand forecasts, faster reactions to demand or capacity changes and well-coordinated product launches.
Download Today!
From the September 2017 Logistics Management Magazine Issue
While Amazon’s recent bid to purchase Whole Foods made mainstream headlines, the e-commerce giant will still need to adhere to time-tested realities. Any way you slice it, the integrated U.S. cold chain requires optimized service from existing ports, 3PLs, cold storage warehousing, transportation providers and high-value vendors.
Improving 3PL Management: Glanbia Adds Muscle to Logistics
Why Retail Supply Chain Transformations Fail - and how to get it right
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
EDITORS' PICKS
26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...

2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...