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Economic Development 101

September 11, 2015

This is part of an ongoing series on the recipients of the MetroConnect Prize, presented by JPMorgan Chase, a grant awarded to 15 companies looking to expand into new foreign markets. Subscribe here to receive new posts every Wednesday on this topic.


“San Diego is every sports and active lifestyle company’s ideal location,” said Lisa Freedman, former executive director of SD Sport Innovators. “While there are other important and larger verticals in San Diego, the sports and active lifestyle cluster is a very strong community where authenticity goes hand in hand with innovation. As a result, people around the globe not only purchase and use, but they also rely on products developed and manufactured right here in Southern California.”

San Diego’s sports and active lifestyle (SAL) manufacturing is the most concentrated industry among major metropolitan regions in the U.S. In an economic impact study released by EDC in 2013, the sports and active lifestyle industry in San Diego represented more than 1,200 business and approximately 23,000 employees. These companies had a direct economic impact of $1.35 billion and accounted for 1.3 percent of San Diego’s 2011 economyequivalent to hosting four Super Bowls every year.

Bounce Composites, an Oceanside-based company, is one of these 1,200 businesses that capitalize on San Diego’s strong SAL industry.

“First of all, we really like living here. It's pretty hard to beat it,” said James Hedgecock, founder & general manager at Bounce Composites. “On a more business-oriented note, San Diego is an amazing area for composites manufacturing as well as the sporting goods market, two industries in which Bounce is deeply invested. In addition, the proximity of Baja California's manufacturing community for the production of some products and applications cannot be ignored.”

Bounce Composites designs, engineers, and manufactures high-quality and durable composite goods for multiple industries including wind energy, automotive, aerospace, and sporting goods. Its stand up paddleboards (SUPs), produced under the brand Bounce SUP, is its largest revenue generator. Bounce SUP’s patented design allows for serious performance and usage while maintaining a minimal environmental footprint. 

Driven by startup activity, the success of San Diego’s small- and medium-sized SAL companies is critical to the region’s future, and increasing their global reach is crucial to that success. Through the MetroConnect Prize, made possible by JPMorgan Chase, companies such as Bounce Composites received $10,000 grants to assist with their next step in going global.

“The recent grant money we were awarded assisted in the implementation of outreach programs within social media websites for domestic and foreign export growth,” said Hedgecock. "Encouragingly, we are experiencing a high return on the international targets within our current marketing plan.”


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September 4, 2015

This is part of an ongoing series on the recipients of the MetroConnect Prize, presented by JP Morgan Chase,  a grant awarded to 15 companies looking to expand into new foreign markets. Subscribe here to receive new posts every Wednesday on this topic.


“Global SaaS software revenues are forecasted to reach $106B in 2016, increasing 21 over projected 2015 spending levels.” - Louis Columbus, contributor, Forbes

According to Cisco®’s Global Cloud Index, “By 2018, more than three quarters (78 percent) of workloads will be processed by cloud data centers…22 percent will be processed by traditional data centers.” The growth of cloud-based systems over the next three to five years will be exponential, leading many companies to implement these technologies into their companies for ease of use.

One sector which could benefit from this technology is the healthcare industry, giving  hospitals the opportunity to seamlessly integrate data into the patient experience . Data management from drug treatments and lifestyle can be streamed in real-time to a doctor.

Enter VisionTree Software’s Optimal Care platform.

VisionTree was founded more than 12 years ago by its current CEO, Martin Pellinat. VisionTree is a leader in data collection, workflow integration, and cross platform applications for improved quality and efficiency of the communication, decision making, and planning processes within the healthcare system.

Pellinat and his team have worked with many of San Diego’s innovative medical centers with the VisionTree software. They have worked with the Scripps Proton Therapy Center to improve its workflow for its leading edge cancer treatment program, and UC San Diego’s health system for both research and clinical use for patient-centered outcomes.

“San Diego is known for medical, life sciences and technology innovations,” said Pellinat. “It is because of this, that VisionTree continues to attract a leading software engineering team to work at its headquarters in San Diego.”

The success of the region’s small- and medium-sized companies is critical to the region’s future, and increasing their global reach is crucial to that success. Through the MetroConnect Prize, made possible by JPMorgan Chase, companies such as VisionTree received $10,000 grants to assist with their next step in going global.

VisionTree is using the MetroConnect funds to expand its software platform to deliver an interoperable solution with all electronic health records in international markets. This integration allows the software to be used more effectively.

“VisionTree is focused on the Australia and European markets,” said Pellinat. “Certain markets are launching national cancer registries and the VTOC platform has been proven in the U.S. with its data-collection elements and workflow system (e.g. prostate, breast, lung, brain) for scalable, multi-center, cloud-based deployments in these new global markets."


 

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August 28, 2015

GLOBAL-SD-LOGO-F-ALL

Lately trade has been on the minds of everyone, with Trade Promotion Authority’s (TPA) passage in June, discussions around the Trans-Pacific Partnership (TPP) hopefully wrapping up this month, and the ongoing negotiations of the Transatlantic Trade and Investment Partnership (TTIP). Exports and trade have become the driving force behind discussions around U.S. job growth and the nation’s continued recovery from the Great Recession.

“As U.S. firms produce and sell their world-class products to customers around the globe, each transaction strengthens our local and national economies, and creates jobs here at home.”U.S. Commerce Secretary Penny Pritzker

We know that supporting companies’ ability to export their goods and services is important for the economic prosperity of San Diego. Exports help sustain jobs, allow companies to pay higher wages, and spur more efficient development of technology and research and development. In 2014 alone, exports supported 72,716 direct and 131,605 indirect jobs.

Earlier this year, the Brooking Institution released new data for its Metropolitan Export Monitor. This data has been the basis for the development of the Go Global San Diego: Trade and Investment Plan, released in March 2015. Although the Export Monitor employs International Trade Administration data, the Export Monitor differs by examining production location vs. origin-of-movement. The full complete methodology can be found by going to the Brookings Institution’s website. Over the next month, we will be examining this new data.                          

In 2014, San Diego was ranked as the 16th largest metropolitan region in the U.S. in terms of its GDP ($206.1 billion) and the value of its real exports ($20.6 billion). However, when comparing export intensity (exports as a share of GDP) among the top 100 metropolitan regions, San Diego ranks 50th (10.03 percent). San Diego has been consistently improving this number over the last four years, ranking 60th (9.62 percent) in 2011. This ranking puts San Diego above peer metros such as Minneapolis (56th), New York (65th), Baltimore (90th), and Washington D.C. (95th).

Even when comparing San Diego’s export intensity to the top 25 metros by GDP, San Diego still falls below the median – ranking 14th. However, San Diego experienced the 2nd largest growth in its exports value, growing by more than 6.6 percent, with San Jose growing at 7.3 percent. Lastly, our region had the largest percent increase in its export intensity – growing by 3.9 percent. The only metro which came close to this level of growth was Seattle, increasing by 2.9 percent.

"San Diego’s international trade opportunities have been moving in a very positive direction since we first examined this element of our economy in 2012. But while we have seen export activity continue to grow each year, there is still a lot more we can be doing to better connect our economy to foreign markets,” said Mark Cafferty, president & CEO at San Diego Regional EDC. “With support from dozens of partners and business groups throughout our mega-region, our Go Global San Diego Initiative aims to increase exports, attract more investment and maximize our global competitiveness.”

The Go Global San Diego Initiative was launched in partnership with more than 20 business, civic, and community leaders. The initiative implements five strategies in order to: (1) drive job growth through expanding FDI and international exports; (2) deepen economic ties between the San Diego region and strategic markets; and (3) enhance our regional identity to increase the region’s global fluency and competitiveness. 

 


In the comings weeks, we will be posting more information regarding San Diego's exports. Subscribe here to receive the latest information. 

 

August 26, 2015

This is part of an ongoing series on the recipients of the MetroConnect Prize, a grant awarded to 15 companies looking to expand into new foreign markets and made possible by JPMorgan Chase. Subscribe here to receive new posts every Wednesday on this topic.


“Are Qualcomm layoffs a disaster for San Diego….” asks Jeff Belk, founder and chairman of Velocity Growth, in a recent Xconomy article. “I don’t think so. Even though this will be very hard for those laid off and their families, it could end up being a watershed moment on a community level.”

Qualcomm’s layoffs – although numbers are unknown for the San Diego region – potentially mean that thousands of “…highly skilled employees across a broad range of disciplines are going to re-enter the job market.” These employees can fill positions at tech companies in San Diego looking for engineering and programming talent. These employees can reapply their skills and work in the life sciences and biotechnology industries assisting in genomic sequencing. These employees can start their own companies and create new technologies that shape the way we interact with our surroundings.

Although he was not laid off, in the case of Erik Bjontegard, former corporate R&D executive at Qualcomm, he did just that – launch his own company, Total Communicator Solutions.

Total Communicator Solutions (TCS) develops innovative, fully integrated mobile marketing communication platforms and customized applications to help clients connect with users, customers and future users in meaningful and measurable ways on mobile devices. Utilizing state-of-the-art beacon technology, TCS’ marketing platform, SparkCompass, enables the delivery of customized and relevant content for real-time consumer engagement.

“San Diego is an important base for us as we are still recognized as a telecom hi-tech innovation center,” said Bjontegard. “If we leverage this, focus on the differences between Silicon Valley’s software focus, and leverage Qualcomm's recognized global leadership in MOBILE - we may be able to put a flag in the sand and capture a leadership role in mobility.”

The success of the hi-tech industry’s small- and medium-sized companies is critical to the region’s future, and increasing their global reach is crucial to that success. Through the MetroConnect Prize, made possible by JPMorgan Chase, companies such as Total Communicator Solutions received $10,000 grants to assist with their next step in going global.

Total Communicator Solutions (TCS) currently operates in Spain, Mexico, the United Kingdom, and New Zealand. By using the MetroConnect funds, TCS hopes to expand its technology across Europe and Asia. It recently completed a proof of concept installation at a EuroCup qualifying match in Oslo, Norway. Due to the successful display, the Norwegian National Soccer Federation is showcasing the reports and videos with many international soccer federations. TCS hopes to have partners in Manchester, London, and Barcelona.

“We are targeting Europe first because their advanced use of mobile smart devices and smart city initiatives,” said Bjontegard. “Barcelona is the world leading Smart City, London has its Tech City, Manchester has MediaCity and in Norway the whole country is going mobile by digitizing their national broadcast network and abolishing all POTs (Plain Old Telephone) lines next year.”


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August 19, 2015

This is part of an ongoing series on the recipients of the MetroConnect Prize, a grant awarded to 15 companies looking to expand into new foreign markets and made possible by JPMorgan Chase. Subscribe here to receive new posts every Wednesday on this topic.


“The future of water is going to be turbulent for all of us — not far away, but right where we live; not in some distant decade, but next month or next spring. A sense of water insecurity is coming to many places that have never had a water worry.” – Charles Fishman, “How California is Winning the Drought”, New York Times

Water. The world’s most precious resource. It is the fuel of manufacturing and the embodiment of craft beer. It is the heartbeat of international trade and the platform for mass entertainment.

Lately, this resource has been incredibly scarce across the globe, especially in California. However, the innovation coming out of government and business has begun to address this dire need; for instance, Israel overcame its lack of water by building desalination plants. Six years later, Israel is no longer “drying up”. In 2014, Saudi Arabia began construction on the world’s largest desalination plant. Not only is San Diego building the largest desalination plant in the Western Hemisphere in Carlsbad, it is also the world leader in the technology that is enabling these countries to build such important devices that bring potable sea water to the masses.

“San Diego County was the ‘birthplace’ of the commercialization of spiral wound reverse osmosis membrane technology,” said Dr. Gil Dhawan, founder and CEO at Applied Membranes. “Our company, started here and this area is a very desirable place to be – having local access to talented individuals and knowledgeable customers, we can design and manufacture the best available water treatment solutions.”

Reverse osmosis membranes separate the impurities in water to create filtered water, which people can drink or companies can use to manufacture craft beer.

Dr. Dhawan worked extensively with Dr. Sourirajan, the inventor of the first commercial reverse osmosis membranes. After working with one of the industry’s founding fathers, Dr. Dhawan started his own company. Headquartered in Vista, Applied Membranes is a manufacturer and distributor of water filtration systems and components that revolve around this technology.

With more than 175 employees in the region and more than 30 years of experience, Applied Membranes is one of the most global companies in San Diego. It currently does business in North Africa, Europe, the Middle East and many other regions around the world.

San Diego’s maritime industry is one of the largest in the U.S. The success of the industry’s small- and medium-sized companies is critical to the region’s future, and increasing their global reach is crucial to that success. Through the MetroConnect Prize, made possible by JPMorgan Chase, companies such as Applied Membranes received $10,000 grants to assist with their next step in going global.

“We are using the money for targeted travel to Japan and China to set up meetings with prospective customers/distributors and to attend trade shows,” said Dr. Dhawan. “We believe that both countries represent growth markets for our products.”

 


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August 3, 2015

Recently, EDC released its June Manpower Monthly Employment Report. Since then, the U.S. Bureau of Labor Statistics has released June employment data on all U.S. metros, which allows us to analyze some key indicators across geographies. Click on images to enlarge in a new window/tab.

HIGHLIGHTS

  • At 5.0 percent, San Diego’s unemployment rate ranked 10th among the 25 most populous U.S. metros.
  • From June 2014 to June 2015, San Diego's unemployment rate fell by -1.4 percentage points, which ranked 3rd.
  • San Diego's total employment grew by 2.8 percent from June 2014 to June 2015, which ranked 10th.
  • San Diego's employment in professional, scientific and technical services (PST) grew by 6.1 percentwhich ranked 3rd.
  • Manufacturing in San Diego grew by 2.8 percent from the previous year, the 6th highest growth rate.

[Unmployment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the June 2015 period for all U.S. metro areas. At 5.0 percent, San Diego County’s unemployment rate fell by 1.4 points from this time last year. This was the 3rd largest drop in the nation, among the 25 most populous U.S. metros. That fall put San Diego's rank at 10th among major U.S. metros and it remained below the U.S. overall rate of 5.5 percent.  

[Employment Chart]

When looking at employment growth, San Diego remained well above the national average. From June 2014 to June 2015, the region's employment grew by 2.8 percent, which ranked 10th among the 25 most populous U.S. metros. The U.S. average growth rate was at only 2.1 percent. Growth has slowed substantially across the U.S. in the past few months, but has since picked up the pace. San Diego has consistently outpaced the national employment growth this year and has been among the top 10 competitive metros in the nation.

[PST Chart]

San Diego's innovation economy is largely driving the region's growth. The region is outpacing nearly all other major metros in professional, scientific and technical services (PST) growth. PST is a sector of the economy very heavily associated with the region's innovation clusters. Much of the companies and employment in clusters like biotechnology, biomedical products, cleantech and information technology fall within the PST sector. Employment in the region's PST sector grew by 6.1 percent since last June, the 3rd most out of any metro studied here. This figure was nearly double the U.S. average and only behind California peers San Francisco and Riverside, which is a positive sign for the state and region's key traded clusters.

[MFG Chart]

San Diego's manufacturing sector growth picked up substantially in June. Manufacturing is another key industry for growth in the region, not only because manufacturing jobs are accessible and pay well, but also because certain manufacturing subsectors are critical to the region's innovation clusters. From June 2014 to June 2015, manufacturing employment grew by 2.8 percent. San Diego's manufacturing employment growth was more than double the U.S. rate of 1.3 percent. The region recorded the 6th highest growth rate among major U.S. metros. This marks the first month on record that manufacturing employment grew at or even near the pace of the overall regional economy. San Francisco and Riverside also experienced outstanding growth in their manufacturing sectors, which is a good sign for the state's manufacturing economy.

San Diego's economy continues to track well above the U.S. average and many of its peers. Unemployment is lower than average and the region experienced one of the largest annual drops in the nation. Meanwhile, San Diego's PST industry continues to be among the fastest growing in the nation. It will be interesting to see if the region can continue to experience such stellar manufacturing growth as the industry continues to rebound. 

EDC will be releasing the Manpower Employment Report with July 2015 data for San Diego on Friday, August 21stThank you to Manpower-SD for their ongoing support of EDC's employment trends research.

July 17, 2015

Download a printable version

“The region’s labor force continues to grow substantially as jobs are being added at a very solid pace. Despite a slight climb in the unemployment rate, all signs point to a positive economic picture for the region going forward.”
Phil Blair, President and CEO
Manpower San Diego


Highlights

This post is part of an ongoing monthly series dedicated to the California Employment Development Department (EDD) monthly employment release and is brought to you by Manpower. Click images to enlarge in a new tab/window.

The California Employment Development Department (EDD) released statewide county employment data today for the June 2015 period. This month’s data shows that while unemployment climbed slightly in June, the labor force grew and the economy continued growth at a steady rate.

The unemployment rate climbed back to five percent for the first time since March. At 5.0 percent, the rate is 1.4 points lower than the previous year and 0.1 points higher than the previous month. The California average rate remained steady at 6.2 percent, while the U.S. average rate climbed to 5.5 percent, meaning San Diego remained much lower than the state and national averages.

Unemployment Rate

The unemployment rate climbed in part due to a rising labor force. This trend is typical in the region, as both public and private seasonal education workers tend to lose work in the summer months. Education accounted for 3,000 lost jobs from May to June, but the sector has grown nearly three percent since June of last year. While a seasonal up-tick in unemployment is common during this period, the 0.1 point change was a much lower change than in previous years. The unemployment rate climbed 0.3 points in 2014 and 0.5 points in 2013 during this same period.

From a year-to-year or non-seasonal perspective, the region’s economy continued to grow around 3.0 percent, adding 38,500 jobs from June 2014 to June 2015. The year-to-year growth rate has been consistently above the 2014 annual average of 2.2 percent. So far in 2015, that annual average is at 3.0 percent through June, compared to the U.S. average of only 2.2 percent.

Total Nonfarm Employment

The private sector economy again accounted for more than 90 percent of the year-to-year job growth and grew by 3.2 percent. This rate also outpaced the U.S. growth rate, which was 2.6 percent over that same period. This job growth continued to be fueled by key sectors. Construction grew by 5.7 percent and added 3,600 jobs. One of the region’s key manufacturing sectors, ship and boat building, grew by 18.0 percent and added 1,100 jobs.

We’ve continued to discuss the stagnant growth in overall manufacturing employment in these reports, but June showed promise for the region’s manufacturing industry. From June 2014 to June 2015, the industry added 2,700 jobs or 2.8 percent growth. This is the highest annual growth rate for the industry that we have on record, going back to 2001.

Manufacturing

Innovation service sectors have continued to show high job growth through 2015. The professional, scientific and technical services (PST) sector grew by 6.0 percent year-to-year, and accounted for 22.1 percent of all annual private job growth—the most of any sector in the region. This sector represents many of our innovation employers. Scientific research and development services, a subsector of PST that represents many cleantech and life science companies, showed slower growth this month compared to previous months this year.

Other key drivers for growth included the region’s health care sector, which added 6,900 jobs and accounted for approximately one-fifth of the region’s private job growth. Employment services or staffing in the region grew by 1,300 jobs and has been steadily increasing all year. Finally, while the tourism industry had a slower month than usual, it still accounted for 14.7 percent of the region’s private growth.

Year-to-Year Growth

While the headlines this month will show a climb in the unemployment rate, the story behind that figure is a positive one. A climb in unemployment from May to June is typical, but the fact that the climb was so slight was atypical and a good sign. The labor force continued to grow above one percent annually after years of steady decline. Finally, manufacturing industry employment is showing solid growth after years of slow growth or decline.

Note: Our Economic Indicators Dashboard will show how our unemployment rate compares to other US metros and the US total rate when that information is released in the coming weeks.

 

July 15, 2015

This is part of an ongoing series which will feature one company every week that received the MetroConnect Prize, presented by JPMorgan Chase

MetroConnect

In 2014, EDC released its Cybersecurity in San Diego: An Economic Impact and Industry Assessment report. According to data from 2014, more than 100 cyber firms employed at least 3,500 private sector employees and supported more than 13,000 jobs in the region. The cybersecurity industry had an economic impact of more than $1.5 billion.

Additionally, in 2014, the industry was projected to grow by more than 14 percent in San Diego, and globally, by more than 10 percent.

With impressive numbers like that, it is easy to see why San Diego has become a hotbed for cyber companies looking to take advantage of this market - especially for a company like EdgeWave, a company that began as a San Diego startup and now employs more than 65 people. 

“EdgeWave’s unique combination of expert U.S. military cybersecurity veterans with advanced technology mirrors the San Diego community, and illustrates why San Diego is the right city to lead the way in securing the global economy,” said Dave Maquera, EdgeWave president and CEO. 

On July 1st, San Diego Mayor Kevin Faulconer, San Diego Regional EDC, JPMorgan Chase & Co. and business and civic leaders, unveiled 15 companies, including EdgeWave, who were selected to receive the MetroConnect Prize. Managed by EDC, and presented by JPMorgan Chase, the MetroConnect Prize grants these San Diego companies $10,000 each in order to assist with developing international business opportunities.

EdgeWave secures over 6,000 companies worldwide by providing internet security, email security, next generation firewall, and network security solutions.

EdgeWave was awarded the prize based on its current relationships and its planned usage of the funds. With about 10 percent of its revenue coming from foreign sources, EdgeWave intends to target the Philippines and China as part of its international growth strategy.

“Cyber attacks threaten the growth of the global economy and we are all affected by the damage done by hackers,” said Maquera, “EdgeWave is confronting this cyber threat with a global focus.  We are successfully expanding into Asia with new large enterprise customer wins and have partnered with Huawei Technologies, a worldwide information & communications technology leader, to expand into other markets around the globe.”

Global engagement is essential if San Diego wants to catalyze its economy and workforce. The benefits of companies going global and engaging foreign markets are well-documented. According to the Brookings Institution, companies that are global pay their employees higher wages, are less likely to go out of business, and spur more efficient development of technology and R&D.


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June 19, 2015

Manpower_Monthly

“Unemployment claims are nearly a fifth of what they were a year ago, with more than 17,000 fewer San Diegans unemployed. Meanwhile, the labor force has grown by more than 26,000, which shows that people are optimistic about getting back to work in the region.”

Phil Blair, President and CEO
Manpower San Diego


Highlights

This post is part of an ongoing monthly series dedicated to the California Employment Development Department (EDD) monthly employment release and is brought to you by Manpower. Click images to enlarge in a new tab/window.

The California Employment Development Department (EDD) released statewide county employment data today for the May 2015 period. This month’s data shows that unemployment remained below five percent in May, as the economy continued to grow at an accelerated rate.

The unemployment rate remained below 5 percent at 4.9 percent. The rate is 1.3 points lower than the previous year and 0.1 points higher than the previous month. The U.S. and California average rates also increased to 5.3 percent and 6.2 percent respectively.

Unemployment Rate

While the unemployment rate experienced a slight uptick, the labor report was generally positive. Unemployment claims fell by 17,200 since May 2014, an 18.2 percent drop. At the same time, the labor force grew by 26,500 from May 2014 to May 2015 as the employers added more than 42,000 jobs. While labor force growth in May is typical in the region, the scale is much greater than in past years. This indicates that job seekers are becoming more confident as employers continue to add jobs

When looking at monthly or seasonal employment, San Diego County employers added 9,500 jobs from April to May. Goods-producers like construction and manufacturing added 2,300 jobs or roughly one quarter of all employment, while tourism accounted for more than half of the seasonal growth.

Unemployment Claims

From a year-to-year or non-seasonal perspective, the region’s economy grew by 3.2 percent, adding 42,400 jobs from May 2014 to May 2015. The year-to-year growth rate in San Diego continued to outpace the national average of 2.2 percent. Employment growth slowed slightly in the past few months, dipping below three percent, so this month's report is a positive sign that the slowing wasn't a pattern.

The private sector economy accounted for 93.9 percent of the year-to-year job growth and grew by 3.6 percent. This rate also outpaced the U.S. growth rate, which was 2.6 percent over that same period. This job growth continued to be fueled by key sectors and employment did not fall in any sectors in the regional economy. Construction grew by 7.1 percent and added 4,500 jobs. Ship and boat building grew by 18.3 percent and added 1,100 jobs. While manufacturing growth has been a concern in recent reports due to slow growth, the industry picked up the pace in May, growing by 2.2 percent, the highest annual rate since March of 2013.

Manufacturing

Innovation service sectors have continued to show high job growth through 2015. The professional, scientific and technical services (PST) sector grew by 6.6 percent year-to-year, and accounted for approximately one-fifth of the annual job growth. This sector represents many of our innovation employers. More specifically, scientific research and development services, a subsector of PST that represents many cleantech and life science companies, grew by 4.3 percent since last May.

The region’s tourism industry continued to show high year-to-year and seasonal growth as well. The leisure and hospitality industry added 8,500 jobs from May 2014 to May 2015, which is about 4.8 percent growth. The industry added 4,900 jobs from April to May, likely due to the ramping up of tourism season in the region. Employment services or staffing agencies experienced high growth in May. The industry added 500 jobs from March to April and 1,200 jobs since the previous year as people are getting back to work.

Year-to-Year Growth

The May labor market report was a great sign for the continued health of the region's economy. While the unemployment rate increased, it remained below five percent amid high labor force growth. Unemployment claims continued to fall year-to-year as the economy continued to grow at a pace well-above the national average. Growth remains concentrated in our traded economy sectors, like tourism and innovation, and in middle-to-high wage industries, like health care and construction. It will be interesting to see if this these positive signs will lead to continued growth in labor force through the summer months.

Note: Our Economic Indicators Dashboard will show how our unemployment rate compares to other US metros and the US total rate when that information is released in the coming weeks.

 

June 19, 2015


Since its launch in 2014 as part of Governor Jerry Brown’s economic development initiative, the California Competes Tax Credit has awarded close to $124 million in credits to California companies that will hire 24,088 jobs over the next five years.

Yesterday, the Cal Competes Tax Credit Committee voted to approve an additional $47 million in tax credits, which will create 11,343 additional jobs, closing out FY14-15 - the first full year of the program. Since the programs inception, 242 companies have received tax credits totaling more than $171.5 million; more than 35,430 jobs will be created and $9.74 billion invested in the state’s economy.

San Diego companies are received more than $19.9 million of these tax credits, or 11.6 percent of all tax credits awarded throughout the state. These funds will help San Diego companies create 3,968 jobs, invest more than $877 million back into their respective companies, and pay more than $646 million in wages over the next five years. 

Companies such as BAE Systems, iboss Cybersecurity, Modern Times, NASSCO and Underground Elephant were awarded these credits.

After the vote next week, San Diego is positioned to rank 2nd in terms of the amount of jobs created and 4th in the amount of tax credits won.

Regional Breakdown of Cal Competes Awards