Study Predicts Fastest Job Growth This Year

In a finding that runs counter to the prevailing winds of economic prognostication, a new study predicts that Southern California will experience its fastest job growth of the decade this year.

The study by Irvine-based Thomas Staffing Services was based on interviews with human resources executives at 951 companies in Southern California. It found that 28% of the companies expect to increase their full-time staff in the first half of the year, while only 3% expected a decrease. That translates into “net hiring strength” of 25 points, 7 points higher than last year’s index, and nearly double the index of two years ago.

“The 1998 study data reflect employers’ confidence that the region’s economic momentum will continue to flourish,” said Thomas Staffing President Douglas M. Slack.

Not surprisingly, the results were particularly strong in Orange County, Southern California’s healthiest economy. The net hiring strength in the county was 30 points. However, the highest index, 36, was registered in San Diego County.

The Thomas Staffing survey results are contrary to many economic forecasts, which predict slightly slower job growth in Southern California this year from 1997’s strong pace. The main reason cited by economists is a potentially negative effect on local exporters because of the Asian financial crisis. Also, in the tight labor markets of Orange and San Diego counties, job growth is expected to be constrained somewhat because businesses will have trouble finding enough qualified workers.

*

Patrice Apodaca covers economic issues for The Times. She can be reached at (714) 966-5979 and at patrice.apodaca@latimes.com