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The Big Picture San Diego Blog


Research Q3 16

August 5, 2016

This week, U.S. Secretary of Commerce Penny Pritzker and Qualcomm CEO Steve Mollenkopf joined a panel of local business leaders from Solar Turbines, Solatube and Northrop Grumman to unveil UC San Diego School of Global Policy and Strategy’s new study on the importance of the Trans-Pacific Partnership (TPP) to the nation and San Diego. The summary, “San Diego and the Trans-Pacific Partnership,” produced by World Trade Center San Diego, explains how San Diego’s unique economic assets position the region to realize relatively greater benefits from TPP than the U.S. as a whole.

TPP, an international trade deal negotiated by the Obama administration and 11 other Pacific Rim countries, seeks to lower trade barriers for exporters and increase intellectual property protections for multinational companies.

San Diego’s prime location on the edge of the Pacific Rim, as well its specialization in advanced manufacturing and other key industries tied to the innovation economy – including scientific R&D, engineering, software and cybersecurity – position the region to benefit disproportionately from TPP.

Key findings include:

  • When compared to other TPP member countries, the U.S. has one of the least restrictive markets – it is easier for foreign markets to export to the U.S. than it is for U.S. companies to send their products abroad.
  • More than 97 percent of San Diego’s exports – primarily high-value advanced manufacturing products – are sold in TPP markets and are collectively worth $22 billion.
  • Enhanced IP protections would benefit San Diego’s innovation economy; San Diego is the third most patent intensive region in the world and five times more specialized in scientific R&D than the nation as a whole.
  • Increased export growth could produce real rising wages for 150,000 high-wage jobs in the region’s manufacturing and innovation sectors.
  • San Diego’s service-providing sector – generally non-traded industries accounting for 87 percent of total employment – is largely insulated from foreign competition. 
July 22, 2016

Phil Blair

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“While June's unemployment rate climbed – a typical trend as educational workers tend to lose employment during summer  key sectors like leisure and hospitality, PST and PBS all experienced strong year-over-year growth. San Diego's unemployment rate continues to remains lower than statewide 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

The California Employment Development Department (EDD) released statewide county employment data today for June in addition to revised data for May 2016. This month’s data shows that San Diego's economy has slowed during the summer months; unemployment experienced an increase while total regional employment grew more slowly than previous months.  

June’s unemployment rate climbed back to 5.1 percent for the first time since October 2015; up 0.9 percentage points from a revised 4.2 percent in May. The unemployment rate is down 0.1 points from the previous year. San Diego’s unemployment rate continues to remain lower than statewide unemployment and is now on par with national unemployment rates of 5.7 and 5.1 percent, respectively.

San Diego’s rate rose in part due to an increase in the labor force. A familiar trend in the region this time of year as many public and private seasonal educational workers tend to lose employment during the summer months. Education accounted for nearly 1,000 jobs lost during May and June combined. Although a seasonal uptick in unemployment is common during the summer, the increase of 0.9 percentage points is significantly higher than seen in recent years. Additional job losses in finance and insurance in addition to health care and social assistance also contributed to the increase in unemployment.

Total nonfarm employment increased steadily since May, adding 8,000 jobs. More importantly, year-over-year nonfarm employment went up by 37,600, a 2.7 percent increase. The private sector drove employment growth in June, as private employment accounted for nearly 83.2 percent, or an increase of 31,300 jobs, of all employment growth over the year. The total private sector grew by 2.7 percent year-over-year.

 At the height of summer and peak tourism season, the region’s leisure and hospitality industry was the largest driver of regional employment growth, adding 5,400 jobs since May. Leisure and hospitality experienced strong year-over-year growth, adding 7,800 jobs, a 4.2 per

cent increase over the previous year, and contributing to 24.9 percent of private sector growth.

Professional, scientific and technical services (PST), a subset of professional and business services (PBS) and strongly associated with the region’s innovation economy, accounted for over 11.5 percent of private sector growth, adding 1,000 jobs since May.

While the June report released today showed increased unemployment in the region’s economy, which is in line with familiar seasonal trends, overall job growth was solid. Unemployment remains well below the state and year-over growth in the region was spread out across a variety of base sectors.

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