"Job losses will continue in construction, manufacturing, retailing and leisure and hospitality services," he said.

With retail stores of all types continuing to close, the impact is being felt in such other areas as the apparel industry, which is undergoing a change in its business model as store closings reduce the number of potential customers, Kyser noted.

The motion picture and TV production industry is negatively affected by eroding broadcast network audiences and a growing concern for cost containment. The region is also suffering from erosion of in-state feature film production.

"This is not good news for below-the-line workers or the multitude of small suppliers to the industry," Kyser said.

International trade activity at the region's ports and airports will continue to decline.

With defense spending set to slow and profit-starved airlines reducing orders for new planes, the Southern California aerospace industry will continue to face difficult challenges in 2009 and 2010, the report said.

Meanwhile, the White House has delayed until August the release of its mid-year budget review, which is likely to include a revised projection of the 2009 deficit.

The review is normally published in July, but officials said it had been rescheduled because of delays typical in years when a new president has taken office.

But Republicans accused the Obama administration of sidelining bad news on budget deficits until after lawmakers leave Washington for their August recess.

(Xinhua News Agency July 23, 2009)