Sacramento’s economy is on the verge of making a full recovery from the recession, according to a new forecast from Sacramento State.
The Sacramento Business Review, produced by the university’s College of Business Administration and the Chartered Financial Analyst Society of Sacramento, said the region will likely eclipse the 2007 peak level of employment sometime later this year or early next year.
“In the next few months, we will see enough job creation,” said Sanjay Varshney, a professor of finance and co-founder of the business forecast, in an interview Thursday. “We are seeing improvement across the board.”
Sacramento’s nonfarm payrolls peaked at 924,700 jobs in June 2007. The recession erased about 110,000 jobs. As of July of this year, the region had 911,500 jobs, 13,200 jobs shy of the peak.
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The forecast said the leisure and hospitality sector has been one of the hottest areas of the region’s economy, with payrolls growing at a nearly 7 percent clip in the past year. Real estate and construction jobs have grown at 3.4 percent in the past year, although construction employment is still 27 percent below the pre-recession level.
The report noted that construction of the new Sacramento Kings arena is helping revive the downtown core, with office and retail space getting snapped up.