CHICO, Calif. – Chico State on Thursday hosted the annual economic forecast conference held virtually due to the pandemic.
The pandemic plays a key role in the economic situation of our region.
Dr. Robert Eyler presented the economic forecast, predicting a recovery trend in the months and years to come.
Locally, Dr. Eyler says construction has remained strong and manufacturing is seeing a comeback.
He says even the service industry, including travel and hospitality, could see a stronger year ahead, depending on how the upcoming travel season plays out.
But one challenge that continues to hurt the economic health of our region is figuring out not just how to attract new workers, but also how to retain them.
“So now if wages are going up because the minimum wage is going up and there’s a labor shortage and they’re both going up simultaneously, that has what we call a compression effect on the other salary levels,” he said. way to solve this problem, if the idea is to give people greater economic opportunities but you don’t want to slow down the hiring dynamic, it is very difficult to balance the two.”
Eyler predicts that the supply chain downturn, which affects all aspects of the economy, could improve by the end of this year.
He says we could return to pre-pandemic stability by mid-2023.
Follow Action News Now on Facebook and Twitter for the latest news, weather and sports in Northern California.