ECONOMY

First Interstate Sees California Recovery in ‘97: Adding its voice to the chorus of good news about California’s recovery, First Interstate Bancorp predicted in its annual forecast that the state will recover by early 1997 the 700,000 or so jobs lost in the last four years of recession. California is already climbing out of the recession, with non-farm jobs expected to grow 0.8% on average in 1994, 1.4% in 1995 and 2.14% in 1996, the bank holding company reported. Even Southern California, beset with defense industry layoffs, has turned the corner, with annual non-farm job growth of 0.4% expected in 1994, 1.4% in 1995 and 1.9% in 1996. Statewide, the unemployment rate should fall to about 8% by the end of the year from nearly 9% now. In addition, the company said housing construction, home prices, retail sales and personal income will all increase next year.