California recovery lags behind rest of U.S.

BRIAN WILLIAMS, anchor: The economy , of course, remains an urgent concern across the country. The Senate is expected to vote this week on one of the president's plans to give the economy a boost, a bill to give tax breaks to small businesses, which have been hard hit by the recession. It is especially urgent these days in California where the job market , among the worst in the country. NBC 's Lee Cowan has our report from there tonight.

LEE COWAN reporting: In a state that boasts some of the best universities, some of the wealthiest residents and some of the most expensive real estate, California 's economy is still in the poor house. A new study shows California 's 2.3 million unemployed workers now take an average of eight months to find a job, a record. In fact, there are so many of the so-called long-term jobless in California , they now outnumber the residents of San Francicso by a long shot.

Ms. SUSAN HUGG (Unemployed): It's very difficult and it's disheartening. And listening to the economic news these days, it's almost depressing.

COWAN: Key sectors of California 's economy like construction and manufacturing have all but vanished. And if you think having a degree helps, it hasn't. In fact, the share of recent college grads who actually got a job here in California has dropped nearly 9 percent. Why? Because some say those with more experience are so desperate to find work they're taking those entry level jobs away.

Ms. LORAINE MANGALIMAN (Recent Graduate): All I know is I either go back to school or I go back to a job that I didn't study for.

COWAN: Employers like the Tulsa Rib Company in Orange , California , have been doing bare bones business for months, but feel the state's economic appetite may be returning.

Ms. LIZ PARKER (Tulsa Rib Company Owner): We've seen peaks and we're not seeing as many valleys.

COWAN: The president's just proposed tax write-offs could mean a new delivery truck, maybe even a new stove. But she's not ready to hire workers, not yet.

Ms. PARKER: The economy , thought it's a swift recovery, we feel it's not continuing to go off the cliff.

COWAN: Not going of a cliff may be the new economic