As has been revealed by a UCLA Anderson Forecast report on Wednesday, double digit unemployment across California will hit its peak during the current quarter and continue up until 2012, adversely affecting the state's economic recovery and posing a threat to the already fragile budget of the State Government.

As per the forecast, the jobless rate in the most populous American state would hit a high of 12.7% during the current quarter and an average of 11.7% for the complete year. Nearly all of California's major industries will have axed jobs this year, with the construction and manufacturing sectors leading the scoreboard.

According to the report, the state's rate of unemployment will average at nearly 12.0% next year, and remain in double digits even as the economy gears up to resume growth in the coming year.

"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 lay-offs cease", said the report.

A total 4.3% shrink in employment has been predicted for the current year, and 0.7% and 1.7% for 2010 and 2011, respectively.