The California economy will rebound -- it may just take a while.
"Though the California economy will be growing in 2011, it will not be generating enough jobs to drive the unemployment rate below double digits until 2012," according to the report.
Unemployment is expected to top off this month at 12.7 percent.
"The stalled California economy is simply not producing the jobs required for the new entrants to the labor force over the next couple of years to prevent these elevated levels of unemployment to persist once the job layoffs cease," according to the report.
An increase in demand of exports, the recovery of U.S. consumer spending, public works construction and investment in business will be critical to California's recovery, the report said.