Although the economic crisis is hitting California as hard as the rest of the country, it is hitting certain counties in California even harder, according to UCLA economists. Riverside County, San Bernardino County, Orange County, and a few other areas will feel the effects of the recession more than the rest of the state.
From the OC Register:
“’The Inland Empire, Orange County, the East Bay and the Central Valley will be hit the hardest as the recession provides a double whammy with a generalized downturn in demand and a postponement of a recovery in residential construction,’says the UCLA quarterly economic forecast.
Orange County unemployment soared to 6 percent in October, a high not seen since July 1994 during the aerospace and construction recession of the mid-1990s.
Economist Jerry Nickelsberg blames the collapse of Orange County’s mortgage and home finance industry for creating an additional strain on the local economy now.
‘It created a big hole in Orange County employment,’says Nickelsberg. He believes it will take several years to absorb those lost jobs.”
According to the forecast, the next year will only get worse for Orange County residents, as unemployment will continue to rise. This, in turn, will lead to less consumer spending and more consumer and business bankruptcies. Bankruptcy attorneys in Orange County, from Irvine to Santa Ana to Rancho Santa Margarita, are reporting high volumes of new bankruptcy clients seeking to file Chapter 7 and Chapter 13 bankruptcies. As far as business in California goes, bankruptcy attorneys are among the select few that are seeing an increase in clients from this crisis.
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