Orange County businesses will add nearly 38,000 jobs in 2015, growing the local employment base by 3%, according to a forecast by Chapman University’s Argyros School of Business and Economics.
Chapman’s A. Gary Anderson Center for Economic Research held its 37th annual economic forecast event Wednesday at the Segerstrom Center for the Arts in Costa Mesa.
The center’s research included analyses and projections for the rest of 2014 and the coming year for Orange County, California and the U.S.
Chapman said OC could wrap up 2014 with a 2% growth in the number of jobs here. The 38,000 jobs expected in 2015 would represent another 3% gain, taking OC’s total employment to just more than 1.5 million.
The construction industry is likely to record the biggest percentage gain in 2015. The industry is expected to grow 6% to 88,808 jobs.
Chapman said that “vacancy rates are dropping, and lease rates are firming” for non-residential properties, a trend that could lead to “new construction projects, particularly on the industrial side.”
Employment in OC’s services sector are projected to grow 4%, or by more than 25,650 jobs, to reach 753,431.
The number of financial services jobs are expected to drop by about 1%, leaving 108,600 positions in the sector here.
Chapman pointed to the decreasing mortgage originations as a key factor behind the drop in financial services jobs and said “there is nothing to indicate that this trend will be reversed anytime soon.”
Other measures projected by Chapman included OC’s median family income, which will grow 5% to $88,900 next year, according to the forecast.
Chapman also said “relatively low housing affordability will dampen home buying activity” and drive down the rate of home price appreciation. The median home price in OC is expected to increase by 4%, following higher rates of increases in the past couple of years.
The number of jobs in California is projected to grow by 2.4% to 15.8 million. Nationwide, employment is likely to grow 1.8% to 141 million.
