California could reverse its three-year economic decline and add nearly 4 million jobs by the year 2005, a new study estimates.
"World market trends still favor California," said Stephen Levy, director of the Center for Continuing Study of the California Economy and the report's principal author. "The fastest growing markets are in areas where California excels."The report said that growth from five newly emerging sectors - foreign trade, high technology, professional services, tourism and entertainment - will boost the number of jobs by 27.9 percent to 18.1 million in 2005 from 14.2 million last year. The national gain during that 13-year period is expected to be 18.7 percent.
"The opportunities in these sectors should result in California growing faster than the nation in the coming decade," Levy said.
California will also add 8 million residents, and 3 million households by 2005. The report also predicted that California income will jump 58.4 percent to $1.01 trillion by 2005, compared with a 40.1 percent national gain.
"The major challenge facing the California economy is to make sure that California has competitive resources to attract high paying jobs," Levy said. "Competitive resources means a skilled workforce, high quality of life, adequate infrastructure and competitive rules and regulations."
The state has lost more than 800,000 jobs since mid-1990, with the aerospace, finance and real estate industries taking heavy hits. Even though April's jobless rate in California was 8.6 percent, the lowest in a year, it remained well above the national average of 7 percent.
Economists have predicted that a mild rebound will start in California next year. They have also said that the southern part of the state is holding back the rest of California and will continue to do so.
The center published a report last year that said California's recession was caused mostly by the U.S. recession and not by companies leaving the state.