The analysis projects that the state's unemployment rate will drop from its current rate of 7.4% to an average of 7% next year, which would be the lowest rate since 2007. Los Angeles County's unemployment rate is expected to fall to an average of 7.7% next year, the lowest since 2008.

Among the other findings in the report:

•The Inland Empire, one of the nation's hardest-hit housing markets, is projected to be one of the fastest-growing metro areas in the state over the next five years.

•The once-beleaguered construction industry is forecast to be the top growth sector in the state through 2019, making up ground after tremendous job losses during the recession.

•Rapid job gains are projected for the temporary employment industry, which has grown at a fast pace during the economic recovery.

In July, California hit a symbolic milestone in its economic recovery, posting more jobs than the peak number reached before the recession, in 2007.

But most Southern California counties have yet to regain the jobs lost during the downturn.

The report finds that Los Angeles County, for example, had about 115,000 fewer jobs last year than at its peak in 2007. Although the county is expected to surpass that peak next year, population growth will cause the unemployment rate to be much higher — a projected 7.7%, compared with 5.1% in 2007.

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