California's hopeful/discouraging signs

The state has been growing (albeit slowly) in nine of the last 10 months, according to an index prepared by the Philadelphia Federal Reserve. Personal income is also higher, as are taxable sales, a sign of increased consumer spending. Even the labor markets are starting to improve, especially in the temp area. But a new report by Beacon Economics warns that California's unemployment rate will remain above 12 percent through the first half of the year, and won't fall below 10 percent until the end of 2012 (it was running at 12.4 percent in November). Employment in the construction industry remains very depressed, and government hiring is likely to be very limited for a while.