California’s economy, once celebrated for outpacing the broader U.S. economy, has weakened significantly, according to a recent UCLA forecast. Key sectors such as manufacturing, entertainment, and logistics have struggled, causing the state’s economic growth to slow to half the national rate. Jerry Nickelsburg, director of UCLA Anderson Forecast, noted that California lost 50,000 payroll jobs in the first four months of the year, with unemployment remaining above 5%. Growth areas like healthcare, education, and government have likely peaked, signaling slow to negative economic expansion ahead. \nNickelsburg anticipates a mild economic contraction for the remainder of the year but predicts a rebound in technology, durable goods, and construction sectors will drive future growth. The state’s unemployment rate has consistently exceeded the national average by over a percentage point. Declines in entertainment, tech, and manufacturing jobs have contributed to the challenges. \nLooking ahead, Trump’s administration’s focus on mass deportations and federal healthcare funding cuts could further impact California’s economy, particularly in healthcare, retail, hospitality, and construction. Nickelsburg emphasized that for California to regain its economic edge, durable goods manufacturing, including aerospace and tech, must recover strongly. He expects economic recovery to begin next year, gaining momentum by 2027, though unemployment may rise to 6.1% this year before declining. \n— new from Telemundo 52
