Description of the Sacramento Business Review Economic Forecast for 2019, which includes a discussion of emerging trends in Sacramento’s economy.
The Sacramento Business Review celebrated its 11th anniversary and issued its 21st edition of the Sacramento Business Review Economic Forecast in January 2019.
If you are not familiar with the Sacramento Business Review I should note that the analysts and researchers involved in its production are volunteers who do this work as a public service to the region. Why? To fulfill the mission of the Sacramento Business Review – to educate consumers on the economic and financial health of the Sacramento region.
The publication of the annual report and mid-year update is made possible by a variety of local partners and sponsors.
SacramentoRevealed.com – All Things Sacramento (from a personal perspective)
The Sacramento Business Review breaks its economic forecast into a discussion of:
- Labor Markets & Regional Economy
- Annual Consumer Sentiment Survey
- Small Business Economy
- Real Estate
- Capital Markets & Banking Forecast
- Human Capital Index
An easy read with lots of graphics, the 2019 report looks back on 2018 and forward to 2019. I found the report full of interesting facts and informed observations.
For example, while I knew that the Sacramento economy has been booming and that the unemployment rate was low, it was interesting to learn that both household income and the distribution of household income in the area has increased as a result.
Also reported is that the rate of increase in the Sacramento area employment growth rate has declined to just 1.33%, the slowest growth since 2011 and slower growth in 2019 here in Sacramento is expected. Why? The report goes on to say that we are at full employment and running out of workers.
How can this be? It is the law of supply and demand. An example is the construction sector which is 6.12% of the Sacramento region labor market. Construction jobs are moving to areas of high demand, for example, in response to the recent fires.
These and many other facts of interest can be found in this most recent Sacramento Business Review Economic Forecast.
The “R” Word
Sacramento has long been known as a “government town” and I certainly am aware of the important employment role government plays in the region. It was therefore of interest to learn that the Government Sector is 24.71% of the labor market. The other large sector in the labor market is the Health Care Sector at 14.72%.
As has been reported many times over the years, the local Sacramento economy has a history of entering recession before a national recession begins, and it is a fact of life that the economy has its ups and downs – a recession is inevitable, we just don’t know when.
In his Message From The Chief Economist, Sanjay Varshney states:
“The question is whether we are prepared for the next down cycle. As we celebrate a great current economy, I want to remind ourselves that the region desperately needs to do something about developing or attracting higher paid jobs and diversifying the job mix to prepare ourselves for the next recession.”
You can download your free copy of the 2019 Sacramento Business Economic Forecast Review here: Sacramento Business Review
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