Center Releases Economic Outlook Report.News Editors/Business Editors PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BUSINESS WIRE)--July 2, 2003 (For more materials including graphics, go to www.ccsce.com under What's New) The Center for Continuing Study of the California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). Economy (CCSCE) is releasing the 2003 edition of California Economic Growth. Palo Alto-based CCSCE has published annual reports on California's economic outlook since 1977. CCSCE prepares independent analyses of the California economy and is not supported by any interest group or political party. With regard to California's current economic situation, CCSCE finds:
1) Since May 2000 when the boom in tech spending and tech stocks
ended, California's job growth has followed the national trend
no better and no worse. As shown below, the state did a little
better in late 2000, a little worse in 2001 and about the same
over all.
2) Both the state and nation have lost 15% of their manufacturing
jobs. As shown below, the pattern of decline is nearly
identical. Outside of excluding high tech, the state actually
has a lower rate of manufacturing job loss than the nation.
3) In high tech, where job losses are the highest, both the state
and the nation lost 25% of their high tech manufacturing jobs
measured from the peak in December 2000. Again, the pattern of
decline between the state and nation is virtually identical.
4) Since 1990, Silicon Valley and California have neither gained
nor lost a significant share of high tech manufacturing.
California's 23-24% share is the highest among states and
Silicon Valley's 9-10% share is the highest among metro areas.
5) The current U.S. economy is lagging compared to recoveries
from earlier recession. Slow GDP growth and job losses
exceeding 2.5 million are the main cause of economic distress
in California and across the nation.
6) The state's economic downturn is concentrated in the Bay Area
just as the decline of ten years ago was concentrated in
Southern California. Regions outside the Bay Area are
outperforming the nation (see the table in Executive Summary
1-5).
With regard to the state's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. outlook, CCSCE finds that job, population, household and income growth will exceed the national average if the state does not self-destruct self-de·struct n. A mechanism for causing a device to destroy itself. intr.v. self-de·struct·ed, self-de·struct·ing, self-de·structs To destroy oneself or itself: through partisan Partisan may refer to: Political matters In politics, partisan literally means organized into political parties. The expression "Partisan politics" usually refers to fervent, sometimes militant support of a party, cause, faction, person, or idea. fighting and gridlock Gridlock A government, business or institution's inability to function at a normal level due either to complex or conflicting procedures within the administrative framework or to impending change in the business. .
California
Major Growth Trends
2000-2010
(Thousands)
2000-2010
Percent Change
2000 2002 2010 California U.S.
Total Jobs 16,200.4 16,156.0 19,090.2 17.8% 11.6%
Population 34,036.0 35,591.0 39,710.1 17.2% 10.0%
Households 11,502.9 11,866.8 13,263.7 15.3% 11.4%
Income (Billions,
2002$) $1,171.2 $1,158.7 $1,649.2 40.8% 33.5%
Projections: CCSCE, Population and Households for 2002 as of 1/1/03
California has a strong economic base centered around high tech, foreign trade, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and entertainment/tourism. The state is facing serious challenges and needs to overcome today's gridlock in order to convert future opportunities into prosperity. |
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