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Economic Drivers

March 1, 2016

The notion that the aerospace industry is in decline is dead wrong.  And now, thanks to a study conducted by Los Angeles County Economic Development Corporation (LAEDC) in partnership with San Diego Regional EDC, we have the numbers to prove it. Released today, The Changing Face of Aerospace in Southern California, provides an in-depth analysis that describes the highly developed industry cluster across eight Southern California counties. In total, the industry impacts nearly 250,000 jobs throughout Southern California. 

Across the Southern California region, aerospace directly accounted for 85,500 jobs – 14 percent of the US industry employment. Additionally, San Diego is home to 12,040 aerospace jobs – approximately 14 percent of Southern California’s aerospace industry. With industry wages averaging $105,715 a year, aerospace workers are among the highest-paid in the SoCal region- almost twice the average pay of other industries.

Thanks to Northrop Grumman’s Unmanned Center of Excellence in Rancho Bernardo and SPAWAR – the Navy’s R&D arm in San Diego – San Diego excels in aerospace technologies.

The aerospace industry not only serves as a crucial pillar of our statewide defense strategy, but with the rise of UAVs and robotics, it also represents a new frontier of innovation – one that is dependent on strong statewide support and innovative policies.  The report was released as part of Southern California Aerospace Day in Sacramento

The report was made possible through the generous funding of Bank of America, California Manufacturing Technology Consulting, Northrop Grumman Corporation and PricewaterhouseCoopers LLP (PwC).

For more information, see the fact sheet.

 

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February 23, 2016

By Mark Cafferty, President & CEO

Kia ora!

Just back from a long trip to Auckland, New Zealand and Sydney, Australia. I wanted to share some updates and observations from my time representing EDC and marketing our region to our friends Down Under and in the City of Sails.

Unlike many of my recent international trips, I spent a great deal of time over the past few weeks engaging with our economic development peers at the Auckland Tourism, Events and Economic Development agency (ATEED) and the leadership of the Committee for Sydney – two very different and interesting models in two very different and interesting cities. EDC’s relationships with these highly regarded organizations have been continually strengthened and enhanced through our work with JPMorgan Chase and Brookings Institute. Our colleague Greg Clark from Brookings was especially instrumental in setting up several of these meetings over the course of my trip.

Most exciting for me to see was the buzz EDC’s work has created over the past few years. Both the ATEED and the Committee for Sydney were familiar with our research and gave high praise to our work with the region’s traded clusters. Quite surprisingly, the organizations knew about our transition away from politics/policy over the last four years and praised EDC for being a leader in redefining regional economic development through a collaborative, employer-led approach – a strategy that has served us well.

In Auckland, they are building a "sports and active lifestyle" sector strategy based on the research EDC conducted a few years ago in partnership with San Diego Sports Innovators. They have also analyzed our export strategy and Go Global efforts, and are working to mirror several of our programs/initiatives – now spearheaded by the WTC San Diego housed within EDC.

In Sydney, the highly influential Committee for Sydney was excited about what they have seen/read regarding our collaboration with Mayor Faulconer's office. Specifically, they are hoping to set up a video conference in May with their business and political leadership in Sydney to hear about the "San Diego Story" from the Mayor and the EDC team. From there they are hoping to open the door to a large-scale trade/investment mission in 2017. Stay tuned...

Along the way I also had a fantastic meeting with Baseball New Zealand set up through the San Diego Padres, meetings with the airline industry set up by our colleagues at the San Diego County Regional Airport Authority, and continued engagement with leadership from two of our greatest San Diego/Sydney business connections: Cubic and ResMed. Lastly, I met with an Auckland-based VC firm who will likely be visiting businesses in San Diego within the next few months.

As always, San Diego’s universities, world renowned research institutions, biotech industry, defense technology and proximity to Mexico dominated conversations throughout the course of my trip. And with international commerce opportunities increasing and expanding through the Trans Pacific Partnership (TPP), everyone I spoke with saw San Diego's geography, entrepreneurship and economic diversity as key assets for expanded international trade and investment.

But what was incredible to see was how much better San Diego's economic story was understood and appreciated in comparison to my first visit to Auckland and Sydney just two years ago.

With and through our partners/investors, EDC is successfully placing San Diego on the radar of international businesses, investors and thought leaders across the world. The National Geographic Smart Cities documentary and our work with Brookings and JPMorgan Chase have a lot to do with this, but so does the hard work of our economic development team, the outstanding research we have been producing and the creative way in which our marketing team is framing our work and telling our story. For that, we have nobody to thank more than our board members and investors whose leadership, guidance, support, direction and vision are helping to change the way the world sees our region and our economy. And the best is yet to come.

A fascinating person I met with during this trip told me that an old Australian Aboriginal Proverb states:

"We are all visitors to this time, this place. We are just passing through. Our purpose here is to observe, to learn, to grow, to love...and then we return home."

Thank you for sharing this time and place with us, and thank you for continuing to support our efforts to observe, learn and grow. 

February 4, 2016
By Nikia Clarke, director of World Trade Center San Diego
 
Konichiwa from Osaka!
 
Given the deep linkages between our regions, it is fitting that the World Trade Center San Diego 2016 calendar of trade and investment activities begins with a targeted focus on Japan. Sean Barr sent his reflections from Tokyo last week, where he was supporting a UC San Diego Technology Symposium and representing our region at an international nanotechnology and robotics show.
 
And this week I am traveling across the country with SelectUSA, the federal government’s foreign investment attraction agency. Japan is the second largest source of foreign direct investment to the United States, and more than 800,000 Americans are employed by US subsidiaries of Japanese firms. San Diego is a microcosm of this larger relationship, with companies like Takeda, Kyocera, Ajinomoto, and Murata employing thousands of San Diegans.  
 
On Monday we kicked off the Roadshow in Tokyo with HE Caroline Kennedy, Ambassador to Japan; Ambassador Vinai Thummalapally, Select USA Executive Director; and Mr. Tatsuhiro Shindo, Executive Vice President of JETRO for the signing of an historic MOI. We then moved on to Nagoya and Osaka, meeting with groups of potential investors at each stop.  
 

Representatives from the head offices of Japanese companies that have made long term investments in our region joined me on the road. Their eagerness to support our efforts here and tell their own San Diego story to their peers is a testament to the deep ties between our two economies.
 
In Tokyo, Toshitake Kobayashi from Takeda Pharmaceuticals joined me to speak to the group of 200 potential investors about how collaboration between Takeda California and Takeda Japan drives innovation in drug discovery for the firm as a whole. This is why Takeda closed its Bay Area facility and consolidated operations in San Diego. Takeda is Asia’s largest drug manufacturer, employing more than 30,000 people worldwide.
 
This emphasis on innovation was echoed by Naoki Sekizawa from Denso, a global manufacturer of parts and technology for every major auto maker from Toyota to GM. He explained to a group of 60 investors in Nagoya that Denso’s operations in Vista – located along the 78 corridor – remain the multinational’s North American research headquarters because of the talented workforce available in ‘telecom valley.’ 
 
Naoki Mori, from Nitto Denko, a water technology company that acquired Oceanside firm Hydranautics in 1987, joined me in Osaka to share his perspective on the advantages of our region. He emphasized the premier universities and research institutions as we spoke to another packed room of over 100 investors interested in the US market. 
 
Three companies from diverse industries delivering the same message: San Diego’s innovation ecosystem – with its strong research institutions and top-tier talent - is a world-class asset. And yet, it is clear that in terms of maximizing these assets, we could be doing more. Out of over a dozen states and metros participating in the roadshow, San Diego is the only one without a Japan trade office staffed with dedicated investment personnel. 
 
Our investors and partners have done tremendous work over the last few years to generate a comprehensive trade and investment plan for the region. And our Port, Airport and City are driving the execution of that plan through the revitalization of World Trade Center San Diego. That kind of regional coalition building is both rare and formidable, and for that we are grateful. 
 
So you will be hearing much more about Japan in the coming months, as we prepare to host several incoming delegations of Japanese companies in advanced industries. And you will also be hearing from Auckland, Sydney, London, Toulon, and Stockholm, as we work to grow exports to, investment from, and relationships with the markets that matter most to San Diego’s growth, prosperity and resilience.
 
Big thanks and kanpai to the San Diego leadership of Takeda, Denso, and Hydranautics for coordinating support on the road, and for the language lessons too.
 

February 1, 2016
 
 
As a major win for the region’s innovation economy, today, Mayor Kevin L. Faulconer and San Diego Regional EDC announced that BD (Becton, Dickinson and Company), the world’s largest medication management company, will be maintaining its presence in San Diego, keeping more than 3,000 jobs in the region.
 
Mayor Kevin L. Faulconer said, “San Diego is now home to the single largest medication management company in the world.   I’m proud BD has committed to building upon CareFusion’s legacy in San Diego, which means that more than 3,000 locals can continue to rely on this company to help them take care of their families, put food on the table and a roof over their heads.”  
 
Bill Kozy, Executive Vice President and Chief Operating Officer of BD said, “San Diego is home to more BD associates than any other city in the world. The region not only offers a great place for associates to live, but it is also home to world-class health care facilities, great universities and many innovative companies that create a highly educated talent pool and opportunities for unique collaborations.”
 
Mark Cafferty, President & CEO, San Diego Regional EDC said, “BD and its 3,000 employees are staying and growing in San Diego. As a company, BD is an example of what happens when leaders collaborate and a global company continues to invest in our regional economy.”

Congressman Scott Peters said, “BD’s decision to invest their future in San Diego demonstrates the strength of our world-class innovation economy and organizations like the San Diego EDC that support it. This move also means thousands of high-quality jobs for {C}San Diego’s increasingly talented workforce. We must continue to drive economic growth and create the jobs of the future in San Diego by permanently eliminating barriers to success for our innovators and entrepreneurs like the harmful medical device tax.”
 
Panorea Avdis, Director of Governor's Office of Business and Economic Development (GO-Biz) said, “GO-Biz applauds our local partners, Mayor Faulconer’s office and San Diego Regional EDC for their work to keep BD in San Diego and we look forward to continuing to work with the company as they expand in California."
 
In 2015, BD merged with San Diego-based CareFusion, creating a $12 billion company—one of the largest medical technology companies in the world. BD has embraced San Diego and will be growing its footprint locally. As a globally-oriented company, BD has a presence in more than 80 countries, yet it currently has more employees in San Diego than any other city in the world.
 
Tapping into San Diego’s strong medical device and engineering talent, BD will be creating a new global center for health informatics on its Torrey View campus. In addition, the company will also be maintain its manufacturing capabilities in the San Diego region.
 
Since BD announced its acquisition of CareFusion in early 2015, the City of San Diego and San Diego Regional EDC have been working with BD to ensure the newly-integrated company continues to build off the strong legacy San Diego CareFusion has created.  
 

January 22, 2016

Phil Blair

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“San Diego’s labor market experienced a very positive year in 2015, despite a slower than usual December. The region added tens of thousands of jobs since the previous year, primarily in high-wage and productive industries. This drove thousands of people back to the labor force and resulted in 20,000 fewer unemployed.”
Phil Blair, Executive Officer
Manpower San Diego


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.

Highlights

The California Employment Development Department (EDD) released statewide county employment data today for the December 2015 period. This month’s data allows for a complete picture for year 2015, and shows that San Diego’s economy grew at an accelerated pace in 2015 compared to recent years.

The unemployment rate closed the year at 4.7 percent in December, the lowest since June 2007. The rate is down 0.1 points from the previous month and 0.8 points from the previous year. The San Diego rate remained much lower than the statewide unemployment rate of 5.8 percent. When averaged over the entire year, the unemployment rate closed at 5.0 percent for 2015, down substantially from the 2014 average of 6.4 percent. The 2015 annual average is the lowest since the recession. Meanwhile, the annual average labor force was up 17,700 from 2014, while unemployment claims were down 20,300, which indicates a healthy rate drop.

Unemployment Rate

The region’s year-over-year employment for December grew below the 2015 average. San Diego’s total non-farm employment grew by 37,500 jobs from December 2014 to December 2015—2.7 percent growth. San Diego’s growth rate was again much higher than the 1.9 percent national rate. In total, the San Diego region averaged 3.1 percent annual growth in 2015, compared to only 2.3 percent in 2014. This was the highest annual percent growth rate since 2000, as the region added 41,400, the most jobs added since 1999.

The private sector drove employment growth in 2015, as private employment accounted for 91.7 percent of all employment growth over the year. The total private sector grew by 3.4 percent on average in 2015, out-pacing the private U.S. growth rate of 2.1 percent.

Total Nonfarm Employment

Private growth was driven largely by service providers, but goods producers experienced a particularly strong year. Manufacturers and construction companies drove 15.9 percent of private job growth in 2015, and finished the year strong. The two industries added a combined 6,000 jobs in 2015, the most since 2004. The manufacturing industry in particular added the most jobs and experienced the highest annual percent growth rate since 1998. The boom in the construction market is likely a response to demand pressures in the commercial and residential real estate markets, as quality space is becoming increasingly scarce, according to CBRE MarketView reports. The growth in manufacturing and wholesale trade are putting pressure on the industrial market in particular, as the industrial vacancy rate in Q4 2015 was at the lowest ever recorded.

YoY

Professional, scientific, and technical (PST) services, which is strongly associated with the region’s innovation economy, grew by 6.6 percent in 2015, which was the highest growth rate among major industries in the region (tied with construction). The 2015 growth rate was the highest posted since 2005 in the industry. PST services accounted for more than one fifth of all private annual job growth in San Diego. Comparatively, the national PST sector grew by only 3.6 percent in 2015. Scientific research and development services, a subsector of PST that represents many cleantech and life science companies, grew by 5.2 percent.

Other key drivers for growth included the region’s healthcare sector, which added 7,000 jobs and accounted for roughly one fifth of the region’s private job growth in 2015. Tourism experienced another seasonal hit in December, but the annual average was strong. The industry added 6,500 jobs in 2015, a 3.7 percent growth rate. Growth slowed in the latter half of the year, particularly in food service and drinking places, which was driving higher growth earlier in 2015.

Contributions

With a full year of 2015 data on the books, it was a very positive year for San Diego’s economy. The national economy showed tepid growth throughout the year, while San Diego consistently looked much stronger than the country as a whole. Key industries like manufacturing, construction, health care, and PST services had impressive, and by some measures, record years. While concerns around decreases in federal spending for science and defense will likely thwart some expectations for 2016, other factors like the Department of Defense’s shifting focus toward cybersecurity and national trends toward manufacturing re-shoring could prove promising for San Diego. Given these trends, future outcomes remain largely uncertain, but San Diego’s economy appears well positioned for growth through 2016.

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.

This report was performed with assistance from the CBRE research team in San Diego. 

December 18, 2015

Phil Blair

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“When an influx of people join the labor force and begin seeking employment, you generally see a lag before they find jobs. In October, a substantial amount of people joined the labor force, but reported as unemployed. In November, it appears as though those people found jobs, as we saw no change in the labor force, but a significant reduction in unemployment.”
Phil Blair, Executive Officer
Manpower San Diego


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.

Highlights

The California Employment Development Department (EDD) released statewide county employment data today for the November 2015 period. This month’s data indicates that San Diego is showing strong signs of growth in the local economy as we near the end of 2015.

The unemployment rate fell to 4.8 percent in November, down 0.2 points from the previous month. In October, the region experienced a large jump in the labor force without a large jump in employment, which caused the unemployment rate to rise back to 5.0 percent. The labor force stayed virtually the same in November, but higher employment and lower unemployment brought the rate back down to 4.8 percent. The number of unemployed fell by 2,000 from October to November, indicating that the fall in unemployment was healthy and not due to a reduction in the labor force.

The rate is now 1.2 points lower than the previous year and on par with the national unemployment rate at 4.8. The region remains much lower than the statewide unemployment rate of 5.7 percent. The unemployment rate is now expected to end the year in the mid-four percent range in December, resulting in an annual average of about 5.0 percent for 2015, down substantially from the 2014 average of 6.4 percent.

Unemployment Rate

The region’s overall year-over-year employment grew, but below the 2015 average of 3.1 percent. San Diego’s total non-farm employment grew by 37,800 jobs from November 2014 to November 2015—2.7 percent growth. San Diego’s growth rate was again much higher than the 1.9 percent national rate. The San Diego region is still expected to average 3.1 percent annual growth in 2015, compared to only 2.3 percent in 2014.

Year-over-year private sector growth continued to drive the economy, as private employment drove 92.1 percent of all employment growth. The total private sector grew by 3.1 percent, out-pacing the private U.S. growth rate of 2.2 percent. Private growth was driven largely by service providers, but goods producers experienced a particularly strong month. Goods producers like manufacturers and construction companies drove 24.1 percent of annual private job growth. This was due to both strong growth in those industries and uncharacteristically weak growth in service providing industries like professional and business services and trade.

Total Nonfarm Employment

From November 2014 to November 2015, the manufacturing industry added 2,400 jobs—a 2.5 percent growth rate. The ship and boat building industry continued to grow at an outstanding rate of 10.3 percent. Meanwhile, the construction industry added 6,000 jobs and grew by 9.4 percent. Continued growth in goods producing industries remains a positive sign for the region, as these jobs tend to be accessible and pay above the median wage for the region.

Professional, Scientific, and Technical (PST) services, which is strongly associated with the region’s innovation economy, grew by 5.5 percent and was one of the highest growth industries in the region. PST services accounted for roughly one fifth of all private annual job growth in San Diego. The national PST sector grew by only 3.6 percent. Scientific research and development services, a subsector of PST that represents many cleantech and life science companies, grew at a relatively low 3.3 percent compared to previous months.

YoY

Other key drivers for growth included the region’s healthcare sector, which added 8,600 jobs and accounted for roughly one quarter of the region’s private job growth. Tourism experienced a major seasonal hit last month, but rebounded slightly in November. The industry added 1,100 jobs from the previous month and 3,700 overall since last November. The annual growth rate in the industry has slowed in the latter half of the year, but still growing, particularly in food service and drinking places.

November’s employment numbers included more positive signs for the region’s economy, particularly when compared to the year before. The region has 13,200 more people in the labor force, 17,000 fewer unemployed, and has added more than 37,000 jobs. The growth rates have slowed in recent months, which may be a reflection of slowing national trends, an indication of mounting issues in the economy, or a brief blip in an otherwise outstanding year. Annual growth rates have varied throughout the year, but have consistently remained above state and national trends, with growth concentrated in high-tech and high-wage sectors. With one month of data remaining in 2015, all signs point to a solid overall year for the region’s economy.

Contributions

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.

 

December 17, 2015

In 2015, San Diego’s economic impact spanned the globe.

From connecting with companies in Tokyo to premiering a “National Geographic” documentary in London, EDC collectively traveled nearly 60,000 miles this year – the equivalent of traveling around the globe twice.
This work is made possible by the strategic investment of more than 150 visionary companies and organizations that support EDC's economic development agenda. Click here to see EDC's year in review.

December 10, 2015

 

A taste of San Diego.  During a Nov. 2014 trip to Munich, Mark Cafferty(L) and Ian Wendlandt (R- Chief of Staff, Stone) present Stone Beer to Munich Mayor Dieter Reiter. 

On tap this week: Another ‘first’ for San Diego. At a time when many San Diego breweries are going through acquisitions, Stone Brewing Co. is going global.

In 2014, EDC Investor Stone announced it would be the first American craft brewer to independently build, own and operate a brewery in Europe. And they chose Berlin, arguably the beer capital of the world (pre-San Diego beer reign, that is), as the place to do this. This week, Europeans got their first taste of these San Diego-influenced, Berlin-brewed Stone craft beers. The hop-centric craft beers made their debut at more than 40 locations throughout Germany, Belgium, Italy, Netherlands, Poland, Spain and the United Kingdom.

This is a significant moment for craft beer internationally,” said Stone CEO & co-founder Greg Koch in a company statement. “We’ve worked long and hard to introduce our vision of bold, innovative craft beer to Europeans and that day has finally arrived.”

Stone is not just introducing great beer to the masses, but with it, is also giving foreign audiences a taste of San Diego. San Diego will benefit if more companies, not just in the beer industry, but in medical devices, software and other high impact industries, follow suite.  Global companies pay higher wages, are less likely to go out of business, increase productivity of the domestic market, and spur more efficient development of technology and R&D. In 2015, EDC launched its Go Global San Diego initiative to enable other San Diego companies to engage in global markets. And every time EDC travels internationally, it always brings Stone beer with it.

As Bruce Katz, a key EDC partner at the Brookings Institution, said, “You don’t export unless you are making a high-quality product that the rest of the world wants…And that’s the San Diego story.” Global interest has sparked a demand for San Diego beer and Stone is capitalizing on it. It’s our hope that other companies do the same. 

November 20, 2015

Phil Blair

Download a printable version

“San Diego’s economy is continuing to grow, despite the forthcoming headlines about the seasonal rise in the unemployment rate. Most importantly, the unemployment rate is a full percentage point lower than it was a year ago, our labor force numbers are showing signs of confidence, and the region has added more than 40,000 jobs since last October.”
Phil Blair, Executive Officer
Manpower San Diego


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.

Highlights

The California Employment Development Department (EDD) released statewide county employment data today for the October 2015 period. This month’s data shows that after another a weak U.S. jobs report released earlier this month, San Diego showed some strong signs of growth, despite a rising unemployment rate.

The unemployment rate rose to 5.0 percent in October, up 0.4 points from September. The rate is still 1.0 points lower than the previous year, but now exceeds the U.S. rate of 4.8 percent. The California average rate also rose to 5.7, and San Diego remained lower than the state average.

San Diego’s rate rose both due to a small seasonal spike in persons who identified as unemployed, as well as a rise in the labor force. Employment also grew steadily over that period, but was offset by those who joined the labor force not finding jobs immediately. Oftentimes, new job seekers take several months to find employment. If larger numbers are truly joining the labor force due to confidence in the labor market, this could potentially explain the rise in unemployment in spite of solid job growth. This was compounded by the tourism industry experiencing a larger than normal seasonal decline, though large October declines are typical for the industry.

Unemployment Rate

Despite this small seasonal up-tick in the unemployment rate, the non-seasonal figures remained positive. There are still 15,700 fewer unemployed than there were a year ago—a 16.7 percent decline. Meanwhile, the labor force is up by 16,600, which may indicate growing signs of confidence in the labor market.

The region’s economy failed to reach the 3.0 percent annual growth figure for the fourth time in 2015, but still remained very close at 2.9 percent. San Diego’s total nonfarm employment grew by 40,200 jobs from October 2014 to October 2015. San Diego’s growth rate was again much higher than the 1.9 percent national rate. The San Diego region is still expected to average 3.1 percent annual growth in 2015, compared to only 2.3 percent in 2014.

Total Nonfarm Employment

Year-over-year private sector growth continued to drive the economy, as private employment drove 91.3 percent of all employment growth. The total private sector grew by 3.2 percent, out-pacing the private U.S. growth rate of 2.2 percent.

Professional, Scientific, and Technical (PST) services, which is strongly associated with the region’s innovation economy, grew by 7.0 percent and was one of the highest growth industries in the region. PST services accounted for more than one quarter of all private annual job growth in San Diego. The national PST sector grew by only 3.6 percent. Scientific research and development services, a subsector of PST that represents many cleantech and life science companies, showed solid growth at 4.6 percent.

Growth in goods-producing industries continued to be a bright spot in October, accounting for 13.6 percent of all private job growth. From October 2014 to October 2015, the manufacturing industry added 1,600 jobs. The ship and boat building industry continued to grow at an outstanding rate of 11.9 percent. Meanwhile, the construction industry added 3,500 jobs and grew by 5.3 percent. While the growth in these sectors is a bit slower than recent months, they are still overall exceeding the regional and national averages, and remain key drivers in the region’s economy.

YoY

Other key drivers for growth included the region’s healthcare sector, which added 8,900 jobs and accounted for 24.3 percent of the region’s private job growth. While tourism experienced a major seasonal hit, losing 4,300 jobs from last month, the industry added 5,200 jobs overall since last October. The annual growth number is slower than recent months, but the industry still contributed to more than 14 percent of the region’s annual job growth.

While the October jobs numbers for San Diego may not be as stellar as we’ve seen in recent months, the growth figures are still very positive. The region is far outpacing the state and national averages in terms of employment growth. More importantly, when we look at the region’s key economic drivers, the growth figures are outstanding. High wage industries like PST services, healthcare, and construction are driving employment growth as we enter the final quarter of 2015.

Contributions

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.

 

November 3, 2015

Recently, EDC released its September Manpower Monthly Employment Report. Since then, the U.S. Bureau of Labor Statistics has released September 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 4.6 percent, San Diego’s unemployment rate ranked 9th among the 25 most populous U.S. metros.
  • From September 2014 to September 2015, San Diego's unemployment rate fell by -1.5 percentage points, which ranked 4th.
  • San Diego's total employment grew by 3.5 percent from September 2014 to September 2015, which ranked 2nd.
  • San Diego's employment in professional, scientific and technical services (PST) grew by 7.4 percentwhich ranked 2nd.
  • Manufacturing in San Diego grew by 2.6 percent from the previous year, the 4th highest growth rate.

[Unmployment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the September 2015 period for all U.S. metro areas. At 4.6 percent, San Diego County’s unemployment rate fell by 1.5 points from this time last year. This was the 4th largest drop in the nation, among the 25 most populous U.S. metros, and the three metros with larger drops have the three highest unemployment rates. That fall put San Diego's rank at 9th among major U.S. metros and it remained below the U.S. overall rate of 4.9 percent.  

[Employment Chart]

When looking at employment growth, San Diego outpaced most of the nation. From September 2014 to September 2015, the region's employment grew by 3.5 percent, which ranked 2nd among the 25 most populous U.S. metros. The U.S. average growth rate was at only 1.9 percent. Growth has slowed substantially across the U.S. in the past few months, but San Diego has consistently outpaced the national employment growth this year and has been among the top competitive metros in the nation.

[PST Chart]

San Diego's innovation economy is largely driving the region's growth. The region is outpacing all other major metros in professional, scientific and technical services (PST) growth except San Francisco. 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 7.4 percent since last September, the 2nd most out of any metro shown here. This figure was double the U.S. average and far ahead of other top tech markets like Seattle, Boston, and New York, which is a positive sign for the state and region's key traded clusters.

[MFG Chart]

San Diego's manufacturing sector also led most of the nation. 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 September 2014 to September 2015, manufacturing employment grew by 2.6 percent. San Diego's manufacturing employment growth was more than triple the U.S. rate of 0.7 percent. The region recorded the 4th highest growth rate among major U.S. metros. Only Detroit, Riverside, and Portland showed stronger growth than San Diego.

So while many key peer metros and the nation as a whole show signs of slower growth, San Diego's economy continues to buck that trend. More importantly, critical sectors like PST and manufacturing are not only showing signs of growth, they're outpacing nearly all of the region's key peers.

EDC will be releasing the Manpower Employment Report with October 2015 data for San Diego on Friday, November 20thThank you to Manpower-SD for their ongoing support of EDC's employment trends research.