The economic recession is over for Los Angeles, but challenges remain, according to the Los Angeles County Economic Development Corporation (LAEDC) in its mid- year economic forecast, released Wednesday. According to the report, job growth for 2010 is looking bright in the information sector, including the movie industry, with 21,300 jobs being added to the local economy. Other small employment increases are forecast in leisure and hospitality, private education, health services, and administration and support services. Meanwhile, Los Angeles should only lose 44,900 non-farm jobs in 2010 as opposed to the 241,300 jobs lost in 2009. The biggest job losses are projected to come from manufacturing, construction, government, and wholesale trade, the report says. The LA economy hit rock bottom last year in June, but was now in recovery mode, LAEDC Vice President and Chief Economist Dr Nancy Sidhu said. 'While we're still reporting high unemployment, it is the case that many business are seeing higher sales and some of them have called back workers that they were forced to lay off during the recession. Some of them also have started to hire some temporary workers because they're not as convinced as I am that we're in recovery,' she said. The LAEDC forecasts the 2009 average unemployment rate of 11.6 percent will increase to 12.3 percent this year, but should decrease to 11.7 percent by 2011. By 2011, there should be an increase of about 46,800 non-farm jobs as the economy recovers. The report also notes that 'business firms initially will be cautious in rehiring until they believe the recovery in their own sales and profits is well established.' But Los Angeles does have a few bright spots, particularly in the entertainment industry and international trade. Between 2008 and 2009, the LA entertainment industry lost 10,600 jobs in motion picture and sound and broadcasting. But the forecast estimates there will be an increase of 16,900 jobs in motion picture and sound for 2010. Allan Lee, founder of film finance specialists Hollywood and Wall, also feels optimistic but still finds it difficult to get financing for his independent film projects. 'The economists said that the entertainment industry is leading the recovery. I personally have a sense that it's getting better. But I haven't seen the amazing growth that's projected for this year yet, especially in terms of the lending market,' he said. 'The entertainment industry in terms of production, marketing and distribution relies heavily on credit markets because 80 percent of most independent films get financed through loans. There are only six lenders in the business and right now, the entertainment market is considered a risky loan,' he said. The report also cites strong international box office numbers, with many films now routinely generating more money overseas then domestically. 'Ten years ago, the U.S. box office was almost exactly equal to the international total, split 50-50. Now it's more like 60-40. That trend is going to continue as economies like China, India, Russia, and Brazil grow,' Lee said. The recovery is also showing up in the area of international trade. Asian exports to the U.S. 'contributed to the recovery in trade as manufacturers and retailers restocked inventories over the past six months,' according to the report. It also notes that more than 40 percent of products imported in containers pass through the ports of Los Angeles and Long Beach. In 2009, the Port of Los Angeles remained the top port in the nation with two- way trade totaling 197.3 billion U.S. dollars. The Port of Long Beach maintained its ninth ranking with a two- way trade value of 68.6 billion dollars. 