California job growth could turn positive, indicator says
The pace of job creation in California should pick up in the fourth quarter of this year, according to an indicator out Monday from the A. Gary Anderson Center for Economy Research at Chapman University.
The California Index of Leading Employment Indicator grew to 101.1 in the fourth quarter of this year, the first time it has topped 100 since the second quarter of 2008. An index value above 100 signifies year-over-year job creation. The indicator was 99.3 in the third quarter of 2010.
The indicator is created by variables that influence California's job growth, including lagged values of real GDP, real exports, total construction spending and the S&P 500. Three of those four components: GDP, exports and the S&P 500, grew in the third quarter of 2010.
California construction spending was the only component that continued to be weak. It shrank 30.1% in the third quarter of 2010.
-- Alana Semuels
Photo: Construction is the only component in the indicator that is still negative. Photo by mugley via Flickr