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Inside EDC

September 18, 2015

Phil Blair

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“San Diego continues to rise above the uncertainties facing many regions around the country. Earlier this month, we saw a weak national jobs report, but San Diego is bucking the trend and exceeding growth expectations.
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 August 2015 period. This month’s data shows that despite a weak August U.S. jobs report released earlier this month, San Diego continued to show signs of a strong economy driven by its key sectors.

The unemployment rate fell back to 5.1 percent in August. The rate is 1.5 points lower than the previous year and 0.3 points lower than the previous month. The California and U.S. average rates also fell to 6.1 and 5.2 percent, respectively, but San Diego remained lower than the state and national averages.

San Diego’s rate fell both due to a drop in persons who identified as unemployed, as well as a small seasonal drop in the labor force. More importantly though, the labor force is up by 25,900 people from August 2014 and unemployment is down 21,500 people over that same period—all amid solid and steady employment growth.

Unemployment Rate

We should note that non-seasonally adjusted employment data for the summer months is almost always filled with wild swings in the labor force and in turn the unemployment rate. This is largely due to thousands high school and college students entering the labor force in May and June, then leaving again in August and September as they return to school. Therefore, summer swings from month-to-month should be taken with a grain of salt, while the focus should instead be on how the labor force is performing differently from the year prior.

On that note, the region’s economy continued to steadily grow above three percent, which we have not seen sustained since 2012. San Diego’s total nonfarm employment grew by 3.1 percent year-over-year, adding 42,400 jobs from August 2014 to August 2015. We have seen three percent growth or greater every month in 2015, other than April where we saw 2.9 percent growth. San Diego’s growth rate was again much higher than the 2.1 percent national rate. The San Diego region is now 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 has also been outstanding and private employment drove 91.5 percent of all employment growth. The total private sector grew by 3.4 percent, out-pacing the private U.S. growth rate of 2.3 percent. Roughly two-thirds of all year-over-year private job growth in San Diego came from four key sectors: construction, tourism, healthcare, and professional, scientific and technical services (PST).

Growth in goods-producing industries slowed, but still showed growth, accounting for 13.1 percent of all private job growth. From August 2014 to August 2015, the manufacturing industry added 1,900 jobs and grew by 2.0 percent, a bit slower than recent months. The ship and boat building industry continued to grow at an outstanding rate. Meanwhile, the construction industry added 3,300 jobs and grew by 5.0 percent.

YoY

Other key drivers for growth included the region’s healthcare sector, which added 6,900 jobs and accounted for approximately 17.8 percent of the region’s private job growth. The tourism industry had a slower month than usual, but still added 5,600 jobs and accounted for 14.4 percent of the region’s growth. Employment services or staffing in the region grew by 4.0 percent and has been steadily growing all year, a good sign for job growth. All of these industries grew faster than the overall private economy.

Given a sluggish national jobs report and uncertainty around global events and interest rates, the August employment report showed good signs for San Diego’s economy. Employment growth remained above three percent and the unemployment rate is creeping back toward five percent or lower. Moreover, 21,500 less San Diegans are unemployed than they were in August of 2014 and 25,900 more have entered the labor force. Important sectors like PST services and construction drove most of the region’s employment growth. San Diego’s economy has shown resiliency during times of national uncertainty, due largely to its concentration in innovative sectors. We expect that trend to continue through the rest 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.

 

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 21, 2015

Phil Blair

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“Every indicator points San Diego in a positive direction, especially employment growth figures, which are really picking up speed. Every year, thousands of education workers temporarily respond as unemployed once schools go on summer break, but these people do not actually leave the labor force. We should not be concerned about the four tenths uptick 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 July 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 above 5 percent to 5.4 percent in July. The rate is 1.5 points lower than the previous year and 0.4 points higher than the previous month. The California average rate also climbed to 6.5 percent, while the U.S. average rate climbed slightly to 5.6 percent, meaning San Diego remained much lower than the state and national averages.

The unemployment rate almost always climbs substantially from June to July due to seasonal effects related to education employment. Every year, thousands of education workers temporarily report to EDD as unemployed once schools go on summer break, but these people do not actually leave the labor force. From June to July 2015, public and private education employment fell by 14,500. This drives up the unemployment rate despite an otherwise healthy economy. Looking at the year-over-year change demonstrates this another way. From July 2014 to July 2015, total unemployment filings fell by 20.0 percent and the rate fell by 1.5 points, all while 26,600 people were added to the labor force.

Unemployment Rate

The region’s economy picked up dramatically. San Diego's total nonfarm employment grew by 3.6 percent year-over-year, adding 48,200 jobs from July 2014 to July 2015. This is the highest year-over-year percent change since March 2012 to March 2013. San Diego's growth rate was much higher than the 2.1 percent national rate. The San Diego region is now expected to average 3.2 percent annual growth in 2015, compared to only 2.3 percent in 2014.

Despite the overall seasonal decline in employment, the private sector economy actually added more than 10,000 jobs from June to July, mostly in the tourism and innovation economy. Year-over-year, the total private sector grew by 3.9 percent, outpacing the private U.S. growth rate of 2.4 percent. Roughly three-fourths of all year-over-year private job growth in San Diego came from five key sectors: construction, manufacturing, tourism, health care, and professional, scientific and technical services (PST).

Total Nonfarm Employment

Goods-producing industries continued to show strong growth, alone accounting for 17.1 percent of all private job growth. From July 2014 to July 2015, the manufacturing industry added 2,500 jobs and grew by 2.6 percent growth. The ship and boat building industry continued to grow at an outstanding rate. Meanwhile, the construction industry added 5,000 jobs and grew by 7.8 percent.

The professional, scientific and technical services (PST) sector grew by 7.4 percent year-to-year, and accounted for 21.9 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, grew at an impressive 5.2 percent rate.

YoY

Other key drivers for growth included the region’s health care sector, which added 6,200 jobs and accounted for approximately 14.2 percent of the region’s private job growth. The tourism industry added 8,500 jobs and accounted for 19.4 percent of the region's growth. Employment services or staffing in the region grew by 1,600 jobs and has been steadily increasing all year. All of these industries grew faster than the overall private economy.

It is most important to emphasize that the seasonal climb in the unemployment rate is not indicative of problems in the economy. In fact, the economy appears to continue to pick up speed, particularly in a few key sectors. The unemployment rate is expected to fall the rest of 2015, likely dipping back below 5.0 percent by September. Compared to this time last year, the labor force is way up, unemployment is way down and employment is growing at a faster pace than it has for years, which are all great signs for San Diego.

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.

 

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 12, 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. Subscribe here to receive new posts every Wednesday on this topic.


 

“See it. Do it. Prove it.”
 
According to a ManpowerGroup survey, one in three U.S. employers experience difficulty in filling positions. Portfolium is changing the way companies can connect and find qualified and talented individuals.
 
Portfolium gives students and other job seekers the opportunity to showcase the projects and creations on which they've worked to future employers. Instead of a static page where someone lists their work experience and education, Portfolium introduces a new and innovative way to present one’s capabilities and skills. 
 
"Portfolium is bridging the workforce skills gap by empowering and connecting students from 2,000+ universities with opportunities to discover, develop and prove their skills to employers,” said Adam Markowitz, founder & CEO at Portfolium. 
 
SMEs represent the vast majority of businesses in the region and are responsible for much of the innovation and job creation activity that propels our economy. The success of these firms 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 Portfolium received $10,000 grants to assist with their next step in going global. 
 
"We're incredibly thankful for the MetroConnect Prize, which has already helped broaden our reach and empower thousands of students across the globe,” said Markowitz. “By partnering with global universities and institutions, we're able to reach an even broader and more culturally diverse population making the jump from college to career.”
 
Portfolium currently exports its services to Spain, Mexico and Argentina. With the funds from MetroConnect, Portfolium aims to expand into the United Kingdom, Japan, China and other countries throughout North America, South America, and Asia. 
 
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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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 31, 2015

San Diego Regional EDC, (EDC), Equinox Center, the Center on Policy Initiatives (CPI),and Posiba - with funding from The San Diego Foundation - launched INSIGHT San Diego yesterday. As the collaborative  planned the future of our region, they recognized the need to take record of how and where progress is measured.

This collective is an informative web platform designed to educate policy makers and the community on issues relevant to our regional quality of life- social equity, economic resilience, and environmental sustainability. 

“As we envisioned the future of our region, many recognized our need to also take inventory of where we are and measure our progress,” said Mark Cafferty, president and CEO of San Diego EDC. “We hope this collaboration with real time, unbiased feedback will inspire all to see that our varied perspectives can enrich the understanding of our region. These are truly exciting times for San Diego.”

Notably, an aspect of this vision is to make data more available for use by local municipalities, planning councils and service organizations as they consider the future of their respective communities, along with the needs and desires of their populations.

"INSIGHT San Diego emerged from local partnerships with the mutual interest of building a sustainable region. Equinox Center relies on these partnerships with leading organizations to increase its impact and continue building a healthy environment, strong economy and vibrant communities,” stated Stephen Heverly, managing director, Equinox Center.

This is the first installment in this collaborative effort to use data research and analytics. INSIGHT San Diego is designed to measure progress on advancing the priorities identified by 30,000 San Diego residents in Our Greater San Diego Vision, supported by The San Diego Foundation, for improving quality of life throughout the region. More recently, a University of Southern California study, Linking Innovation With Inclusion, identified our region’s growing diversity as an untapped source of strength for our innovation economy. 

According to Clare Crawford, executive director at CPI, “Equity is integral to having a healthy environment and a strong and sustainable economy in San Diego. This project is a great first step in having our researchers come together and look at the issues affecting our region. Through cross sector collaborations like these we hope to move San Diego forward."

Additionally, the project will analyze the region’s innovation, competition, and local talent attraction in order to continue the momentum of national attention San Diego has recently received from entities including Forbes and Inc., who boast San Diego’s rapidly advancing startup culture. San Diego was also just featured by National Geographic as part of its "World's Smart Cities" series, as one of 18 cities featured from around the world, showcasing San Diego’s quality of life, technology sector, and local modernizers.

You can view pictures from the launch here: goo.gl/UcK4qQ

EDC's participation in the project was made possible by the Morgan Family Foundation

Please check out INSIGHT San Diego at insightsandiego.info and let us know what you think. Join the conversation at #INSIGHTsd

July 29, 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. Subscribe here to receive new posts every Wednesday on this topic.


There are 3.2 billion base pairs in your genome. Although all of this information is contained within a single cell, decoding it – and thus understanding many diseases and pathologies – is a challenge.  

San Diego-based Cypher Genomics, winner of the MetroConnect Prize, may be changing that.

We’re working to translate your genome into actionable information to impact human health,” said Adam Simpson, COO of Cypher Genomics at the MetroConnect launch on July 1.

Cypher is working to solve a large problem facing the genomics industry – genome interpretation. As one of the 15 winners of the MetroConnect Prize, Cypher will be taking its genome decoding technology to the rest of the globe. 

SMEs represent the vast majority of businesses in the region and are responsible for much of the innovation and job creation activity that propels our economy. The success of these firms is critical to the region’s future, and increasing their global reach is crucial to that success. Through the MetroConnect Prize, companies such as Cypher Genomics received $10,000 grants to assist with their next step in going global.

Cypher plans to use the prize money to advance business development efforts around the globe including in the United Kingdom, Japan and China. Not only are these countries that can benefit from genomics technology, but they are also among San Diego’s top five trade partners. Simpson is currently en route to the U.K. to use some of the funds.

As Cypher has learned, they’re not promoting their own business, but also the San Diego region. San Diego is known across the globe as a major contender in the life sciences industry.  Just last week, JLL found that San Diego had the fourth largest life sciences cluster in the nation.  Although we may have just missed the top three, when it comes to genomics, San Diego is the gold standard.

Like many successful San Diego life sciences firms, Cypher traces its roots back to our research institutes on the Mesa. What started as an idea inside of the Scripps Research Institute has morphed into a 10 plus person company. Chaired by industry vet Hank Nordoff (Hank also chaired EDC’s board from 2004 -2006), Cypher is in good company with many other leading genomics companies including Illumina, Sequenom and others.  

We have incredible academic institutions. We have access to incredible talent, wonderful people, and great companies. San Diego really is THE city for genomics, said Simpson.

The MetroConnect Prize is made possible by JPMorgan Chase & Co.

You can read Cypher Genomics' blog post about the MetroConnect prize here.

July 17, 2015

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“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 1, 2015

2015 MetroConnect Prize Press Conference 062

San Diego Mayor Kevin L. Faulconer, San Diego Regional EDC, JPMorgan Chase & Co. and business and civic leaders, today unveiled the 15 companies selected to receive the MetroConnect Prize. . Managed by San Diego Regional EDC, and presented by JPMorgan Chase, the MetroConnect Prize grants 15 San Diego companies $10,000 each in order to assist with developing international business opportunities. The complete list of prize recipients can be found here.

Opportunity starts in San Diego and with MetroConnect, we are helping out successful, home-grown San Diego startups so they can share that opportunity across our local economy and spread San Diego’s innovative products and services across the world,” said city of San Diego Mayor Kevin Faulconer. “ I look forward to seeing these San Diego companies thrive and grow, as we continue to tell San Diego’s success story to the rest of the world.”

The MetroConnect Prize is made possible by JPMorgan Chase, a company committed to helping San Diego reach its full economic potential.

JPMorgan Chase is pleased to support these San Diego businesses that are going global,” said Brennon Crist, head of JPMorgan Chase’s Middle Market Commercial Banking group in San Diego. ‘’We hope the MetroConnect Prize program will enable these local firms to spend time in their target international markets, so they can visit suppliers and potential customers. In time, their export efforts could lead to job creation and growth of the San Diego economy.”

MetroConnectWHY GO GLOBAL?        
With more than 85 percent of global growth through 2019 projected to occur outside of the U.S., global engagement is a big opportunity for many American cities, such as San Diego. According to the Brookings Institution, San Diego has the 17th largest economy in the U.S. in terms of GDP, but ranks 61st in terms of export intensity. In March 2015, Mayor Faulconer, San Diego Regional EDC and others launched the Go Global San Diego initiative, designed to help San Diego businesses attract foreign customers and investment and target key metro markets, including: London, Tokyo, Stockholm and other major global cities. The MetroConnect Prize was announced as a transactional way of helping companies reach more customers, thus translating into economic gain and job creation for the region.

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.

On the heels of national political gridlock around trade legislation, working with companies at a metropolitan level is essential if we want to grow jobs and our economy.

“The best way to create jobs locally is to concentrate on growing the small and medium–sized businesses we currently have in San Diego,” said Mark Cafferty, president and CEO of the San Diego Regional EDC, the organization administering the grants. “With JPMorgan Chase’s help, we’ve essentially developed a business accelerator for helping companies go global.”

MetroConnect Prize recipients will not only have access to funds, but also EDC and its affiliates’ international networks. In 2015 alone, EDC and many partners have traveled to London, Paris and Tokyo and will be heading to Brisbane and Sydney this week to further develop these networks critical to the success of local businesses.

FROM 64 to 15: SELECTING THE WINNERS
In total, 64 companies applied to receive the MetroConnect Prize. Companies were selected based on a variety of criteria, including interest in new markets, interest in targeted metro markets, assessed impact of funds, current international plan and more.  A panel of judges, including representatives from Biocom, Connect, Qualcomm Ventures, Quantum Designs, San Diego Regional EDC, Software San Diego and Wireless Life Sciences Alliance, selected the winners.  

From Cypher Genomics (a spin-off from The Scripps Research Institute), which employs 10 people locally, to Applied Membranes, a Vista-based maritime technology company that employs 175 individuals, these  prize recipients represent a diverse cross section of San Diego’s innovation economy. These small to medium–sized businesses are representative of industries in life sciences, digital health, action sports, telecommunications, maritime technology and cybersecurity. (Please see “Company Stories” for more information about employment numbers, average revenue and more.)

One company receiving the prize is EdgeWave, a San Diego-based company that employs 65 people.  Currently, the cybersecurity company derives 10 percent of its revenue from foreign sources, and is looking to use the funds to further develop markets in Manila, Philippines and Shanghai, China.

Cyber attacks threaten the growth of the global economy and we are all affected by the damage done by hackers,” said Dave Maquera, EdgeWave president and CEO. “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.  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.

Companies can use the funds for a variety of global services including travel (to and from target market), participation in a trade show, establishment of a foreign subsidiary to operate in the market of interest, foreign language translation of marketing materials, export plan development and more. The funds are not expected to cover all of the expenses a company incurs in going global. Rather, the MetroConnect Prize was created by San Diego Regional EDC and JPMorgan Chase as a way to incentivize companies to kick start global efforts or explore a new foreign market.

Thanks to Japan Airlines, companies looking to increase ties with the Japanese market have the added benefit of discounted flights to Narita International Airport in Tokyo. Currently, Tokyo is one of the two direct intercontinental flights from San Diego International Airport.

A GLOBAL GRAND PRIZE
Announced at the press conference today at the San Diego International Airport, MetroConnect Prize winners will also be eligible for the MetroConnect grand prize, an additional $50,000 to help one or two companies advance their global agendas. In late 2015, MetroConnect Prize recipients will be invited to share their stories for the judges, who will select the grand prize recipient(s).

Congratulations to the award winners:

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