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January 14, 2015
The post below is part of an on-going series leading up to San Diego's Global Summit, a global competitiveness initiative EDC will formally launch on March 11. Subscribe here to receive new posts every Wednesday on this topic.
 
A revolution is stirring in America. Like all great revolutions, one starts with a simple but profound truth: Cities and metropolitan areas are the engines of economic prosperity and social transformation in the United States.” – Bruce Katz and Jennifer Bradley, The Metropolitan Revolution
 
The Great Recession had profound impacts on the national economy: businesses closed; unemployment increased; homes were liquidated. The U.S. experienced the repercussions of taking on large debt and focusing on consumption rather than production, innovation, and entrepreneurship. 

metro revolutaion

Enter Bruce Katz.  
Katz wrote The Metropolitan Revolution as a response to the inaction of the federal government to move the national economy in the right direction. Metropolitan regions, Katz argues, will drive the future growth and prosperity of the U.S. economy, not the federal government.
 
The top 100 metropolitan regions of the United States hold only 12 percent of the total land mass but they account for more than 66 percent of the nation’s population. With this high concentration of people, these economic powerhouses account for 75 percent of the entire country’s GDP, and 78 percent the nation’s patents - a sign of regions' innovative power. 

 

Top 100 metros

Credit: The Brookings Institute 

Putting words into action, Katz and his team at the Metropolitan Policy Program launched the Global Cities Initiative, a five-year project of Brookings and JPMorgan Chase aimed at helping the leaders of metropolitan areas strengthen their regional economies by becoming more competitive in the global marketplace.

On March 11, EDC and partners will publicly launch San Diego's Global Summit presented by JP Morgan Chase with Katz by our side. Katz will be keynoting the event , where he will discuss San Diego’s – and other metros’ – strength in the global economy. In particular, his keynote will discuss San Diego's ability to innovate and adapt to world-changing events and grow its economy.

More information about San Diego's Global Summit on March 11 is available here.

Leading up to March 11, we’ll be giving a rundown of some panelists, guest speakers and programs involved in San Diego's Global Summit every Wednesday on our blog.

Next week: where does San Diego stack up when it comes to its ranking in the national economy? Here’s a hint:  We’re 17th in GDP and population, but 61st in export intensity. As a region,we have the opportunity to change this.

January 2, 2015

Recently, EDC released its Manpower Monthly Employment Report. Since then, the U.S. Bureau of Labor Statistics has released November 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 5.8 percent, San Diego’s unemployment rate ranked 16th among the 25 most populous U.S. metros.
  • From November 2013 to November 2014, San Diego's unemployment rate fell by -1.2 percentage points, which ranked 8th.
  • San Diego's total employment grew by more than 3.2 percent from November 2013 to November 2014, which ranked 6th.
  • San Diego's employment in professional, scientific and technical services (PST) grew by 6.7 percent, the 4th highest growth rate.
  • Manufacturing in San Diego grew more than 3.7 percent from the previous year, the 3rd highest growth rate.

[Employment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the November 2014 period for all U.S. metro areas. When looking at employment growth, San Diego was one of the best in the nation. From November 2013 to November 2014, the region's employment grew by more than 3.2 percent, which ranked 6th among the 25 most populous U.S. metros. The U.S. average growth rate remained at only 2 percent. San Diego has consistently outpaced U.S. employment growth this year.

[Unemployment Chart]

At 5.8 percent, San Diego County’s unemployment rate remained the same as it was in October, but fell by 1.2 points from this time last year. San Diego's rate ranked 16th among major U.S. metros and remained above the U.S. overall rate of 5.5 percent. However, San Diego's rate fell faster than most metros. San Diego's percentage point change from November 2013 to November 2014 ranked 8th among major U.S. metros. While the unemployment rate in San Diego was higher than some of the region's key peer metros, it still fared better than other California metros like Los Angeles and Riverside, and fell roughly in the middle of the 25 most populous U.S. metros.

[PST Chart]

San Diego's overall growth is very positive, and we continued to see even more explosive growth in one of the region's most important sectors. Professional, scientific and technical services (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. While we saw high growth in in the October report (5.0 percent), employment in the region's PST sector grew by 6.7 percent since last November. San Diego ranked 4th among the 25 most populous U.S. metros in this measure, and far outpaced U.S. average growth, which is a positive sign for the region's key traded clusters.

[MFG Chart]

We continued to see even more  impressive growth in San Diego's manufacturing sector. 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 November 2013 to November 2014, manufacturing employment grew by 3.7 percent. San Diego's manufacturing employment grew at more than twice the rate of the U.S. (1.5 percent), and recorded the 3rd highest growth rate among major U.S. metros. 

Last month, we speculated that November would be a good month for San Diego given that the BLS had already reported such strong national figures. We covered how good the local numbers were in detail in our most recent Manpower Monthly Employment Report, but it is important to understand San Diego's growth relative to its peers. San Diego continues to fare better than most in employment growth, particularly in key innovation sectors. In two weeks, we will know San Diego's December figures and wrap up 2014. Barring a very unexpected poor report, San Diego will likely finish the year much better than even the most optimistic expectations, and likely better than the majority of peer metros.

Thank you to Manpower-SD for their ongoing support of EDC's employment trends research.

December 19, 2014

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“I can’t overstate how impressive San Diego’s jobs numbers are this month. We’re far exceeding even optimistic expectations, and continue to lead the way. It’s been an exciting year for growth.”
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 November 2014 period, and much like the national report released two weeks ago, San Diego County experienced another month of outstanding job growth.

San Diego County employers added another 13,100 jobs in November, which makes it 60,800 jobs added so far in 2014. When looking at year-over-year growth, the region added 43,000 jobs, which is the most in 20 months. The annual job growth rate was 3.2 percent growth, which eclipsed the U.S. total employment growth rate of 2.0 percent over the same period.

[Total Chart]

San Diego County’s unemployment rate remained flat at 5.8 percent and fell by 1.2 points from this time last year. The unemployment rate in the region was 1.3 points below California’s 7.0 percent rate and tracked just above the U.S. average of 5.5 percent, which also remained flat. While the unemployment rate didn’t decline, it did remain flat amid 4,000 new labor force participants, indicating that job seekers are finding employment.

Job growth continued to be fueled by our private sector. San Diego County private businesses added 10,600 jobs in November and 40,500 since one year prior. Over the past year, private businesses have accounted for more than 94 percent of job growth in the region and grew by about 3.7 percent. This includes our goods producing industries which grew by more than 4.3 percent over that period—well above the national average.

[Unemployment Chart]

While goods producers have outpaced service providers in annual averages, service providers offset seasonal losses from goods producers in November. Most of this can be attributed to retail stores addressing holiday shopping needs while construction projects experience a seasonal slow down. Retail jobs alone accounted for more than 60 percent of private job growth last month, while construction and manufacturing businesses shed 1,700 jobs.

Despite the seasonal downturn, construction and manufacturing drove more than 16 percent of the region’s annual private job growth from November 2013 to November 2014. These industries added 6,800 jobs over the same period and outpaced total job growth. In particular, the ship and boat building sector grew by 13.6 percent over that period, which is a good sign for the region’s blue economy.

[MFGChart]

Other innovation sectors continued to show annual job growth. The professional, scientific and technical services (PST) sector grew by more than 6.7 percent and represents many of our innovation employers. National PST employment only grew by 3.2 percent over that period. More specifically, scientific research and development services, which represents many cleantech and life science companies, grew by 4.5 percent since last November.

The region’s other important growth sectors continued to grow above the regional average. The health care sector grew by 4.9 percent and is one of the region’s largest employers, representing 157,500 jobs. Another large and impactful industry, tourism, experienced 3.9 percent growth over that period. Finally, staffing services continued to grow rapidly—a good indicator of company growth.

[Growth Chart]

It remains clear that 2014 has been an outstanding year for job growth in the region. San Diego’s key traded industries led the way and the region is far ahead of the pace many anticipated at the outset of the year. The region continues to outperform the U.S. both in total employment and in key sectors, and job seekers continue to return to the economy and find jobs. It will be exciting to see how the region closes out the year when December figures are released next month.

See press release here.

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 10, 2014

Recently, EDC released its Manpower Monthly Employment Report. Since then, the U.S. Bureau of Labor Statistics has released October 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 5.8 percent, San Diego’s unemployment rate ranked 17th among the 25 most populous U.S. metros.
  • From October 2013 to October 2014, San Diego's unemployment rate fell by -1.6 percentage points, which ranked 8th.
  • San Diego's employment grew by more than 2.6 percent from October 2013 to October 2014, which ranked 8th.
  • San Diego's employment in professional, scientific and technical services (PST) grew by 5.0 percent, the 5th highest growth rate.
  • Manufacturing in San Diego grew more than 3.6 percent from the previous year, the 4th highest growth rate.

[Unemployment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the October 2014 period for all U.S. metro areas. At 5.8 percent, San Diego County’s unemployment rate fell by 1.6 points from this time last year. San Diego's rate ranked 17th among major U.S. metros and remained above the U.S. overall rate of 5.5 percent. However, San Diego's rate fell faster than most metros. San Diego's percentage point change from October 2013 to October 2014 ranked 8th among major U.S. metros. While the unemployment rate in San Diego was higher than some of the region's key peer metros, it still fared better than other California metros like Los Angeles and Riverside, and fell roughly in the middle of the 25 most populous U.S. metros.

[Employment Chart]

When looking at employment growth, San Diego was one of the highest growing metros. From October 2013 to October 2014, the region's employment grew by more than 2.6 percent, which ranked 8th among the 25 most populous U.S. metros. The U.S. average growth rate was only 2 percent.

[PST Chart]

While San Diego's overall growth is very positive, we continued to see more explosive growth in one of the region's most important sectors. Professional, scientific and technical services (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. While we saw higher growth in in September (7.2 percent), employment in the region's PST sector grew by 5.0 percent since last October, still much higher than the U.S. average of 3.1 percent. San Diego ranked 5th among the 25 most populous U.S. metros in this measure, which is a positive sign for the region's key traded clusters.

[MFG Chart]

We saw even more  impressive growth in San Diego's manufacturing sector. 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 October 2013 to October 2014, manufacturing employment grew by 3.6 percent, which was faster than the region's overall growth rate. San Diego's manufacturing employment grew at twice the rate of the U.S., and recorded the 4th highest growth rate among major U.S. metros. 

While we already knew San Diego's October figures were positive, as we wrote in our most recent Manpower Monthly Employment Report, it remains important to understand San Diego's growth relative to its peers. San Diego continues to fare better than most in employment growth. Unemployment numbers are improving, but still lagging behind the U.S. and other key peer metros, which is something to remain cautious about. At this point, we know that November was very strong month nationally, in which the U.S. added 321,000 jobs, the most in almost three years. We also saw positive growth in temp jobs in November, according to Staffing Industry Analysts. It will be exciting to see how these figures are reflected by San Diego businesses and job seekers, which we will detail in November's Manpower Monthly Employment Report next Friday, December 19th, when the California Employment Development Department Releases the data.

Thank you to Manpower-SD for their ongoing support of EDC's employment trends research.

November 21, 2014

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“We continue to find ourselves in a much better position than the year before, as our labor force and employment base continue to grow. Job seekers are not only finding opportunities, but in industries that pay well.”
Phil Blair, President and CEO
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 2014 period. At 5.8 percent, San Diego County’s unemployment rate dropped 0.1 points from September to October, and fell by 1.6 points from this time last year. The unemployment rate in the region remained 1.2 points below California’s 7.0 percent rate and tracked just above the U.S. average of 5.5 percent.

While a 0.1 point decrease may not seem particularly outstanding, the unemployment rate continued its descent while the labor force added 14,900 job-seekers this month. Unemployment claims remained flat, meaning there was one job for every one person who re-entered the labor force. This is a great sign moving forward, since it shows that workers are encouraged and finding jobs.

[Unemployment Chart]

When looking at employment changes, we see a mix of private and public sector growth, the latter due mostly to the return of public school employees. From September to October, the region’s total employment grew by 12,500 jobs, with the private sector accounting for 5,700 jobs.

Monthly private sector gains were partially offset by the continued seasonal decline of accommodation, recreation and food service workers that support our visitor and convention economy. These changes happen every year, as the summer travel season winds down. Much of this employment is made up for with seasonal gains in the retail trade sector, as businesses begin serving back-to-school and holiday shoppers.

[Tourism Chart]

Perhaps more importantly, San Diego’s total and private employment growth continued to outpace the U.S. average. Since October 2013, San Diego’s employment grew by 2.6 percent compared to 2.0 percent nationally. Likewise, the region’s private sector grew by 3.0 percent compared to 2.3 percent nationally.

Most of the private growth from September to October came from a handful of industries. Health care, education, retail trade and administrative services alone added more jobs than the net private sector, meaning the 7,300 jobs added in those industries were offset by losses elsewhere in the private sector, mostly in tourism-related industries.

[Growth Chart]

San Diego’s construction and manufacturing industries had a slow month, but that is typical for this period. These industries are still producing high year-over-year employment gains. Construction and manufacturing added a combined 8,000 jobs since October 2013, and both are growing well above the private sector average.

Innovation sectors continued to show annual job growth. Ship and boat building grew by more than 11 percent and is a critical component of our maritime cluster. The professional, scientific and technical services sector grew by 5.0 percent and represents many of our innovation employers. More specifically, scientific research and development services, which represents many cleantech and life science companies, grew by 4.2 percent since last October.

[MFGChart]

The numbers from October’s report are promising. We don’t entirely know the deeper causes behind the labor force and unemployment numbers, so optimism should be tempered in that regard. However, San Diego continues to experience above average annual job growth driven by its core industries like health care, advanced manufacturing and science-related services, which is clearly something to remain optimistic about.

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 7, 2014

Mayor Faulconer and TSRI Acting President & CEO James Paulson

With more than 80 research institutes throughout the region, San Diego is a breeding ground for innovative companies and institutes that solve some of the world’s toughest challenges.  Perhaps no local institution has captured the region’s innovative spirit more than The Scripps Research Institute (TSRI).

 They are on the forefront of controlling a global epidemic. Currently, TSRI Professor Erica Ollmann Saphire is advancing new Ebola therapies and has already contributed to the development of ZMapp, the Ebola therapy from San Diego-based Mapp Pharmaceuticals, given to the first two U.S. missionaries who survived infection.  Dr. Saphire has launched a crowdfunding campaign to find new therapies for the viral disease. TSRI Professor Dennis Burton and his colleagues are also taking a global leadership role in the development of a vaccine to combat HIV/AIDS, focusing on understanding rare antibodies that are effective in neutralizing the virus.

As part of his commitment to raising global awareness of the region’s innovation economy, City of San Diego Mayor Kevin Faulconer has partnered with EDC to tour some of San Diego’s most cutting-edge businesses and institutes, including TSRI last Friday.  The Mayor also visited General Dynamics NASSCO and SPAWAR earlier this year.

As of Tuesday, Dr. Saphire’s crowdfunding campaign has exceeded its $100,000 goal, meaning more innovation will take place right here, in San Diego.  


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November 3, 2014

Earlier this month, EDC released its 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 5.9 percent, San Diego’s unemployment rate ranked 16th among the 25 most populous U.S. metros.
  • From September 2013 to September 2014, San Diego's unemployment rate fell by -1.4 percentage points, which ranked 8th among the 25 most populous U.S. metros.
  • Since the end of the recession (June 2009), San Diego's unemployment rate has fallen by 4.1 percentage points, which is greater than the U.S. average.
  • San Diego's employment grew by more than 2.5 percent from September 2013 to September 2014, which ranked 9th among the 25 most populous U.S. metros.
  • From September 2013 to September 2014, San Diego's employment in professional, scientific and technical services (PST) grew by 7.2 percent, the 2nd fastest growth among major U.S. metros.
  • Manufacturing in San Diego grew more than 2.6 percent from the previous year, which is faster than both the overall employment growth and the U.S. manufacturing average.

[Unemployment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the September 2014 period for all U.S. metro areas. At 5.9 percent, San Diego County’s unemployment rate fell by 1.4 points from this time last year. San Diego's rate ranked 16th among major U.S. metros and was slightly above the U.S. overall rate of 5.7 percent. However, San Diego's rate fell faster than most. San Diego's percentage point change from September 2013 to September 2014 ranked 8th among major U.S. metros. While the unemployment rate in San Diego was higher than some of the region's key peer metros, it still fared better than other California metros like Los Angeles and Riverside, and fell roughly in the middle of the 25 most populous U.S. metros.

[Employment Chart]

When looking at employment growth, San Diego fared better than most. From September 2013 to September 2014, the region's employment grew by more than 2.5 percent, which ranked 9th among the 25 most populous U.S. metros. The U.S. average growth rate was less than 2 percent, and only two U.S. metros, Houston and Dallas, grew by more than 3 percent.

[PST Chart]

While San Diego's overall growth is very positive, we saw more explosive growth in one of the region's most important sectors. Professional, scientific and technical services (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. From September 2013 to September 2014, employment in the region's PST sector grew by 7.2 percent, more than double the U.S. average of 3.2 percent. San Diego ranked second among the 25 most populous U.S. metros in this measure, which is a positive sign for the region's key traded clusters.

[MFG Chart]

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 2013 to September 2014, manufacturing employment grew by 2.6 percent, which was faster than the region's overall growth rate. San Diego's manufacturing employment grew at twice the rate of the U.S., and recorded the 9th highest growth rate among major U.S. metros. 

As we discussed in the Manpower Monthly Employment Report earlier this month, San Diego's economy is experiencing strong positive employment growth. That point is even more apparent now that we can observe that growth in the context of San Diego's peers. While the unemployment rate isn't as comparatively low as we would like to have seen, Summer-to-Fall seasonal effects are often felt more strongly in San Diego, given the region's large tourism industry. We've generally seen the unemployment rate track at or below the U.S. average, and don't expect that to change much in the near future.

Thank you to Manpower-SD for their ongoing support of EDC's employment trends research.

October 17, 2014

Download a printable version

 

 

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

  • Monthly data for September is highly susceptible to seasonal changes, so month-to-month employment changes should be viewed in that context.
  • At 5.9 percent, San Diego’s unemployment rate fell in September by 0.3 percentage points from August. In addition, unemployment was down 1.4 points from September 2013.
  • San Diego’s unemployment rate was lower than the California average, and slightly above the U.S. average.
  • The region lost 2,800 seasonal jobs from August to September, but added 33,300 jobs since last year.
  • Seasonal effects limited monthly employment growth in most private industries, but manufacturing, education services and professional and business services added jobs in September.
  • Staffing services grew by 4.7 percent since last year and nearly two percent this month, indicating demand for hiring services.
  • San Diego’s traded economies (Innovation, Defense and Tourism) continued to drive annual employment growth.

[Unemployment Chart]

The California Employment Development Department (EDD) released statewide county employment data today for the September 2014 period. At 5.9 percent, San Diego County’s unemployment rate dropped 0.3 points from August to September, and fell by 1.4 points from this time last year. The unemployment rate in the region remained a full point below California’s 6.9 percent rate and tracked just above the U.S. average of 5.7 percent. While the region experienced a decline of more than 11,000 in its labor force, much of this can be pinned on seasonal effects, as temporary summer workers fall out of the labor force. Since September of last year, the labor force gained 11,100 people, 33,900 more people have identified as employed, and 22,200 less people have identified as unemployed, indicating positive momentum in the labor market.

[Employment Chart]

When looking at employment changes, September seasonal effects played a role here as well. From August to September, the region’s total employment fell by 2,800 jobs, with the private sector falling by 7,400 jobs. Private sector losses were partially offset by 4,500 public sector education workers returning to their jobs. While these numbers appear threatening, it can be almost entirely pinned on seasonal losses in common summer growth industries like construction and tourism. When looking at year-over-year growth, we see that San Diego added 33,300 jobs, 32,400 of which are from the private sector. San Diego continued to out-pace national growth as well. Employment from September 2013 to 2014 grew by approximately 2.5 percent overall and three percent in the private sector, while the U.S. grew by about a half point slower.

[PST Chart]

San Diego’s traded economies continued to drive much of the region’s employment growth. Professional, scientific and technical services (PST), heavily associated with innovation, was one of the few industries to add jobs in the down season. The industry added 600 jobs since August 2014. More importantly, PST added 8,900 jobs since September 2013, a growth rate of 7.2 percent, which is nearly three times the economy-wide 2.5 percent growth rate. PST includes subsectors like scientific research and development services, which is a key driver of our life sciences. This subsector grew by 4.6 percent over the year.

San Diego’s tourism industry continued its normal seasonal decline, losing 5,700 jobs from August to September. However, the industry added 3,700 jobs since September 2013, indicating that the industry is still performing well.

San Diego’s goods producers continued their steady employment growth, despite experiencing a seasonal drop like most industries in the region. Goods producers accounted for more than 27 percent of the annual job growth. The construction industry, despite losing 1,400 jobs last month, added 6,300 jobs from September 2013 to 2014, a 10.2 percent increase. Manufacturing was one of the few industries to grow this month, adding 600 jobs from August to September. This industry has added 2,500 jobs since September 2013,

Other substantial annual growth industries include ship and boat building, which grew by more than 11 percent and is a critical component of our maritime cluster. San Diego’s movers of goods have also been growing rapidly, as transportation and warehousing employment grew 7.5 percent over the year.

[Growth Chart]

While the apparent seasonal effects in this month’s report may grab the headlines, San Diego is performing well so far in 2014. San Diego’s key driving industries have had an outstanding year, at least in terms of job growth, and the region has continued to add middle-to-high paying jobs in industries like manufacturing, construction and PST services. San Diego continued to out-pace the U.S. in job growth, while seeing a healthy decline in the unemployment rate. With one quarter remaining, San Diego’s labor market has exceeded many expectations.

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.

September 19, 2014

Download a printable version

 

 

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

  • As predicted, August marked the rebound from the seasonal effects experienced in the previous two months.
  • At 6.2 percent, San Diego’s unemployment rate fell in August by 0.7 percentage points from July. In addition, unemployment was down 1.5 points from August 2013.
  • San Diego’s unemployment rate was lower than the California average, and returned below the U.S. average.
  • The region gained 3,500 jobs from July to August, and added 34,200 jobs since last year.
  • A booming construction industry added 6,800 jobs since August 2013, a more than 10.8 percent increase over the year.
  • The manufacturing industry added 2,200 jobs since the previous August.
  • Staffing services grew by more than 2.5 percent since last year, indicating demand for hiring services.
  • San Diego’s traded economies continued to drive much of the monthly and annual employment growth.

[Unemployment Chart]

The California Employment Development Department (EDD) released statewide county employment data today for the August 2014 period. At 6.2 percent San Diego County’s unemployment rate dropped 0.7 points from July to August, and fell by 1.5 points from this time last year. The unemployment rate in the region remained lower than California’s average, and returned to below the U.S. average of 6.3. As predicted in previous monthly reports, August began the seasonal decline of the unemployment rate. However, unlike the U.S. jobs report released earlier this month, August’s decline in San Diego was not driven by a lower labor force. In fact, San Diego’s labor force increased by 5,500 from July to August, as 6,600 less people registered as unemployed.

[Employment Chart]

When looking at employment growth, we’ve continued to see positive signs of steady growth, particularly in San Diego’s private sector. From July to August, the region added 3,500 jobs, more than 82 percent of which came from the private sector. The private sector added 2,900 jobs from July to August, a sign of continued economic growth. When looking at overall growth since last August, the region’s economy added 34,200 jobs, a 2.6 percent increase. Meanwhile, the region’s private sector grew by more than 3 percent over that period. With unemployment down and the economy consistently adding jobs, it appears as though many job seekers are finding landing spots as the economy continues to improve, and much of the growth is in middle-to-high paying industries.

[Growth Chart]

San Diego’s traded economies continued to drive much of the region’s employment growth. Professional, scientific and technical services (PST), heavily associated with innovation, added 1,600 jobs since July 2014, which accounted for more than half of private sector job growth since July. PST added 7,800 jobs since August 2013, for an annual growth rate of an impressive 6.2 percent, well above the economy-wide average of 2.6 percent. PST includes subsectors like scientific research and development, which is a key driver of our life sciences. This subsector grew by more than 4.2 percent over the year.

San Diego’s tourism industry began its seasonal decline, losing 2,700 jobs from July to August. However, the industry added 3,600 jobs since August 2013, indicating that the industry is still performing well. Health care and social services was another major contributor, adding 5,700 jobs since August 2013. Combined, PST, Tourism and Health Care accounted for more than half of the region’s annual private employment growth.

San Diego’s goods producing industries continued their steady employment growth. Manufacturing remained flat from July to August, but added a total of 2,200 jobs since August 2013. Meanwhile, the construction industry continued to boom. The industry added 500 jobs from July to August and 6,800 jobs since August 2013, for an astounding 10.9 percent annual growth rate. Combined, the manufacturing and construction industries accounted for more than one quarter of private employment growth from 2013 to 2014.

[Construction Chart]

The August employment report confirmed that much of the negativity that we saw in June and July were simply seasonal effects and not indicative of any negative trend. The recession is clearly in the rear-view mirror and has been for some time. May 2011 was the last month in which San Diego didn’t record a year-over-year job gain. We haven’t even experienced a month-to-month loss in private employment in 2014, an indication of how steadily the economy has been growing so far this year. Finally, the unemployment rate declined as a result of job-seekers finding employment, not job-seekers leaving the labor force, an important sign of a healthy regional economy.

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.

Read more:

 

 

August 15, 2014

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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.

[Unemployment Chart]

HIGHLIGHTS

  • July is a historically misleading month, as state and local public education employees are subject to seasonal layoffs.
  • At 6.6 percent, San Diego’s unemployment rate went up again in July, this time by 0.5 percentage points from June. However, unemployment was down 1.4 points from July 2013.
  • San Diego’s unemployment rate was lower than the California average, but climbed slightly above the U.S. average.
  • The region lost 5,900 jobs from June to July, but added 37,200 jobs from the previous year, the highest year over year job growth recorded in 2014.
  • Construction industry employment in July was up more than 11.3 percent from the previous year.
  • The manufacturing industry added 2,200 jobs since the previous July.
  • Staffing services grew by more than 3.3 percent since last year, more than any other professional or business service subsector.
  • Tourism, innovation, construction and healthcare sectors continued to drive much of the monthly and annual employment growth.

[Unemployment Chart]

The California Employment Development Department (EDD) released statewide county employment data today for the July 2014 period. San Diego County's unemployment rate went up from June to July, but fell by 1.4 points from this time last year. The unemployment rate in the region remained lower than California's average, but is now barely higher than the U.S. average (0.1 points higher). As stated in last month's report, a summer rise in the unemployment rate is common, as many students and other seasonal workers begin looking for summer employment, but struggle to find employment, driving up the labor force. The labor force increased by 14,800 from June to July, more than one-third of which found employment. The other two-thirds entered the unemployed category during a season when thousands of state and local educators, among other seasonal employees, are temporarily out of work. While there's no certainty in the future, history tells us to expect the unemployment rate to decline steadily from here on out through the end of the year.

[Employment Chart]

When looking at employment growth, we continue to see positive signs of steady growth, despite a misleading seasonal decline. From June to July, the region lost 5,900 jobs. On the surface, this seems negative until you consider that state and local public education contributed 12,800 lost jobs to the region as a result of seasonal layoffs. The private sector actually added 6,800 jobs, a sign of continued economic growth. When looking at overall growth since last July, the region’s economy added 37,200 jobs, a 2.8 percent increase and the largest annual growth recorded in 2014. Meanwhile, the region’s private sector grew by more than 3.1 percent over that period. Over the same period, San Diego experienced a 1.4 percentage point drop in the unemployment rate and a 17 percent drop in people who identified as unemployed, even with a slight increase in labor force participation.

[PST Chart]

San Diego’s traded economies drove much of the region’s employment growth. Professional, scientific and technical services (PST), heavily associated with innovation, added 2,200 jobs since June 2014 and 6,700 jobs since July 2013, for an annual growth rate of 5.4 percent, well above the economy-wide average. PST includes subsectors like scientific research and development, which grew by more than three percent over the year. PST accounted for nearly one-third of the private employment growth from June to July. San Diego’s tourism industry accounted for more than 39 percent of the region’s private employment growth from June to July, adding 2,700 jobs. In addition, the industry added 6,000 jobs since July 2013. Most of the growth is driven by food service businesses, but arts and recreation businesses also grew by six percent since last year. Health care and social services was another major contributor, adding 6,000 jobs since last July.

San Diego’s goods producing industries continued their steady employment growth. Manufacturing added another 200 employees from June to July, for a total of 2,200 jobs added since July 2013. Meanwhile, the construction industry continues to soar, and not just because of summer seasonal growth. The industry added 1,500 jobs from June to July and 7,000 jobs since July 2013, both of which represent more than 20 percent of private employment growth over those periods. 

[MFG Chart]

When going beyond the basic headlines of job loss and unemployment growth, the July employment report was actually full of good signs for San Diego’s economy. Our private sector economy continued to grow at a steady pace of more than three percent year-over-year. Goods-producing industries like construction and manufacturing continued to add jobs, and our innovation sectors grew well above the normal economic pace. While higher unemployment and overall job loss is concerning, it is very clear that these are simply seasonal trends related mostly to annual public education layoffs.

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.