L.A.’s road to recovery from the worst recession in decades will be uneven with some potholes ahead next year, according to a forecast released Wednesday from Beacon Economics.
Beacon’s forecast, presented to a gathering of business leaders in downtown Los Angeles, calls for modest job growth and a gradual decline in the unemployment rate – now at 12.5 percent – for the rest of 2010. But job growth will slow to negligible levels in 2011 as economic stimulus funds and payroll tax cuts expire.
“Our current forecast is for substantial slowing of growth in 2011 and 2012,” Beacon Economics forecaster Brad Kemp said.
Kemp said in the forecast that international trade, manufacturing and entertainment will feel a lift from the nascent recovery. But construction will remain weak and government job cutbacks will dampen growth.