EVP NOTES — The California Economy: Good and Bad

There are a number of indicators that show the California economy is on its way back — recovering at a slow rate.

The state has recovered all the jobs lost during the recession and employment figures continue to grow. California has gained 1.5 million jobs over the past five years and unemployment has declined from more than 12 percent to 7.2 percent. Consumer spending has increased and thus state and local government revenue has rebounded.

Low inflation, interest rates and declining fuel prices contribute to consumer confidence and most economists predict good times ahead for the next couple of years. Good news for the pest control industry...and good news for a growing PCOC membership.

There are, however, some things to be concerned about in California’s $2 trillion economy. For instance, as I hear when visiting our PCOC districts, the recovery is very geographically based: concentrated in coastal communities. Much of inland California still experiences double digit unemployment. The Public Policy Institute of California, notes that despite a sharp decline in the state’s unemployment rate, it still has the nation’s third highest.

There is much that still needs to happen before we can declare that the economy is rebounding significantly....but it is a start which will hopefully pick up steam during 2015.

Happy New Year!