By Riamy Beuscher, communications intern
California’s severe housing shortage is expected to impact the state’s economy despite current growth. According to reports released by UCLA and UC Riverside, the state cannot continue rapid economic growth without adding more people to the workforce. However, without available housing to meet demands, population and economic growth are naturally restricted.
As the unemployment rate remains just above 5 percent, California nears full employment. That means nearly every individual who wants a job has one. As a result, there are fewer people to recruit into the workforce who already live in California.
The lack of housing for workers makes it much more difficult for employers to fill open job positions. According to the report, California will add jobs at the rate of 2 percent during 2016. However, growth will slow to 1.1 percent during 2018, in part due to the high cost of living.
To read more, go here: http://www.latimes.com/business/la-fi-california-growth-nation-20160927-snap-story.html