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The Big Picture San Diego Blog


Research Q3 2018

September 21, 2018

San Diego’s Economic Pulse uses data to tell a story about our regional economy. This issue covers data from August 2018. Check out EDC's research bureau for more data & stats about San Diego's economy. 

Monthly Employment Change by Sector
 

 

 


 

September 6, 2018

In an effort to build a more inclusive economy, San Diego Regional EDC and its Inclusive Growth Steering Committee of 40 employers officially endorsed a regional goal to double the number of skilled workers produced in San Diego County to 20,000 per year by 2030, as well as a set of recommendations, to develop a stronger local talent pipeline – the first of three main goals of EDC’s Inclusive Growth initiative.

“We have untapped talent all throughout San Diego County, especially in our Latino communities,” said Dr. Patricia Prado-Olmos, vice president of community engagement, California State University San Marcos, and Inclusive Growth Steering Committee member. “When higher education and companies come together to provide our traditionally underserved populations with the education, training, and development they need to qualify for highly-skilled and high-paying jobs, we are able to create a better San Diego where everyone can thrive.”

BUILDING THE TALENT PIPELINE
Amid a nationwide battle for skilled talent, San Diego must also look inward and focus on building a stronger talent pipeline locally to sustain its growth. Earlier this year, EDC released research that shows the region’s largest and fastest growing population (Hispanics) is statistically the least prepared for high-skilled high-wage jobs, with 85 percent without a bachelor’s degree.

In its latest study release, EDC found that there are more than 100 key occupations in the region with shortages in skilled labor, many of which fuel San Diego’s innovation economy. Projections show an estimated 20,000 job openings per year in these same occupations, which means that San Diego’s current talent supply falls short in meeting anticipated skilled labor demands of tomorrow’s economy. The study also found that San Diego’s current innovation economy does not reflect the region’s population, as the Hispanic population is glaringly underrepresented at only 17 percent. Guided by the findings of this study and input from expert advisors, EDC’s Inclusive Growth Steering Committee—comprised of 40 regional employers—has endorsed a regional goal to double the number of skilled workers produced in San Diego County to 20,000 per year by 2030.

Companies that have officially endorsed this regional target include Northrop Grumman, Qualcomm, Brown Law Group, Thermo Fisher Scientific, Cox Communications, ResMed, Cubic Transportation Systems, and more. For a complete list of employers committed to this effort, visit the interactive web study online.

To further support this goal, the Inclusive Growth Steering Committee has also developed the following recommendations for employers to adopt and implement at their organizations:

  1. Transparency – provide EDC with anonymized data on workforce demographics to benchmark and track over time. Understanding the composition of the region’s largest employers will provide insight into where the region stands at present and how much progress is being made over time.
  2. Engagement – participate in direct student-workplace exposure programs that directly engage the students aimed to prepare for high-skilled work in 2030. Providing K-12 students with opportunities to visualize themselves in the roles that the regional economy needs them to fill.
  3. Investment – invest in post-secondary educational programs resulting in qualified talent at respective workplace.

“Latinos are the most underrepresented group across innovation companies in San Diego,” said Cynthia Curiel, vice president of communications, Northrop Grumman, and Inclusive Growth Steering Committee member. “We are in a war for talent, and recruiting from outside the region isn’t enough. By investing in building our local workforce, we can fill jobs and lift communities that are currently underrepresented in San Diego’s innovation economy.“

EDC and the Inclusive Growth Steering Committee strongly encourage other regional employers to adopt these recommendations and actively promote inclusion at their respective workplaces.

BUILDING A STRONGER SAN DIEGO: EDC’S INCLUSIVE GROWTH INITIATIVE

Like many of its metro counterparts, San Diego has its fair share of economic challenges. While its innovation economy continues to grow and bring in much wealth and opportunity to the region, it also leaves many San Diegans unable to afford the rising cost of living.

To help sustain San Diego’s future growth, EDC launched a data-driven initiative focused on promoting inclusive growth as an economic imperative, emphasizing that San Diego employers must take active measures to promote inclusion, or the region will no longer be able to compete.

Together with its Inclusive Growth Steering Committee, EDC aims to set regional targets and release actionable recommendations for three main goals: build a strong local talent pool; equip small businesses to compete; and address the affordability crisis.

“The regional economy is changing rapidly, and we must be inclusive to succeed and compete,” said Mark Cafferty, president and CEO, San Diego Regional EDC. “For EDC, this means changing the economic development discussion to be talent-centric and inclusive in nature. These recommendations represent the first step in our regional employers’ commitment to developing local talent and preparing a workforce that is diverse, ambitious, and capable of meeting the demands of our growing economy.”

Over the next several months, EDC will continue to establish regional targets and recommendations for its other two goals. EDC will also support employers by facilitating the collection of data for quick, consistent reporting and serving as a liaison between employers and various community partners to expand reach and increase exposure of scalable programs.

For more information about the Inclusive Growth initiative, visit inclusiveSD.org.

Follow along on social media with #inclusiveSD

View the full interactive web study release – “Building San Diego’s Talent Pipeline” – here.

August 24, 2018

Every quarter San Diego Regional EDC analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S. This issue covers data from Q2 2018.  

Following seasonal declines in employment during Q1, San Diego, and the overwhelming majority of the most populous metros, experienced an increase in employment during Q2 2018. Welcoming recent graduates and ramping up for the summer season, the region added 16,500 jobs - a 1.1 percent increase in employment during the quarter. Compared to a year ago, nonfarm employment was up 22,500 jobs, or 1.5 percent.

San Diego’s unemployment rate remained below that state and national rates of 4.5 and 4.2 percent, respectively.

Key findings from the snapshot:

  • When compared to its regional neighbors, San Diego’s unemployment rate continued to fare better than both Riverside (4.7 percent) and Los Angeles (4.5 percent).
  • With the summer tourist season approaching, the leisure and hospitality sector recorded the largest quarterly gain, adding 6,300 jobs during Q2.
  • Year-over-year, the region’s median home price continued to climb, growing by 6.6 percent.
  • Compared to the same period a year ago, VC investment in the region has more than doubled. 

The Quarterly Economic Snapshot analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S. This releases includes data from April to June (Q2) 2018.

 

August 17, 2018

Each month the California Employment Development Department (EDD) releases industry data for the prior month. This edition of San Diego’s Economic Pulse covers July 2018 data, including unemployment, new business establishments, and job postings.

Highlights include:

  • Data from the month of July reflect seasonal employment losses. The unemployment rate fell slightly during the month to 3.5 percent after a sharp spike in June.
  • Nonfarm employment fell by 14,400, or 1.0 percent, in July. Compared to year ago, total nonfarm employment is up 21,200, or 1.5 percent.
  • San Diego’s unemployment rate remains well below both the state rate of 4.4 percent and the national rate of 4.1 percent, both of which also saw small declines in July.
  • Nearly every jurisdiction saw declines in its unemployment rate in July. Only Solana Beach experienced no change in its unemployment rate of 1.5 percent.

Read the full Economic Pulse here.


July 20, 2018

Each month the California Employment Development Department (EDD) releases industry data for the prior month. This edition of San Diego’s Economic Pulse covers June 2018 data, including unemployment, new business establishments, and job postings.

Highlights include:

  • The region’s unemployment rose to 3.7 percent in June after several months of record lows.
  • Every jurisdiction saw an increase in the unemployment rate during the month of June. Six cities had increases of a full percentage point. 
  • Labor force grew, adding 5,200 workers during the month, up 0.3 percent. However the labor force is down 2,500 compared to a year ago.
  • Monthly employment trends changes appear to be countering trends of the past year. PST services continue to have the fastest year-over-year growth, up 4.9 percent.

Read the full Economic Pulse here.