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Economic Outlook Mixed For Silicon Valley

SAN JOSE (CBS 5 / KCBS) ― At an economic conference on Friday came predictions for continued growth for Silicon Valley this year, but there was also talk of challenges for workers in the middle class.

Those attending the 'State Of The Silicon Valley' conference at the San Jose Convention Center said they believe the area should be largely insulated from a recession.

"We are a technology economy, we are not a manufacturing economy. Most of the jobs, the products, the services we create, we are marketing to overseas markets, especially the burgeoning Asian markets. Plus we're innovating, the work that we do is knowledge intensive, and knowledge based," said Russell Hancock, CEO of Joint Ventures Silicon Valley, among the conference participants.

The outlook isn't as rosy for mid-wage earners. Hancock said people who work in the service industries, such as teachers and police officers, will see a squeeze on their jobs.

Silicon Valley gained 28,000 jobs last year, which was a faster job growth rate than California, or the nation as a whole.

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

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