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March 1, 2016

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

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

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

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

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

For more information, see the fact sheet.

 

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January 22, 2016

Phil Blair

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


This post is part of an ongoing monthly series dedicated to the California Employment Development Department (EDD) monthly employment release and is brought to you by Manpower. Click images to enlarge in a new tab/window.

Highlights

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

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

Unemployment Rate

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

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

Total Nonfarm Employment

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

YoY

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

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

Contributions

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

Note: Our Economic Indicators Dashboard will show how our unemployment rate compares to other US metros and the US total rate when that information is released in the coming weeks.

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

December 18, 2015

Phil Blair

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


This post is part of an ongoing monthly series dedicated to the California Employment Development Department (EDD) monthly employment release and is brought to you by Manpower. Click images to enlarge in a new tab/window.

Highlights

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

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

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

Unemployment Rate

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

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

Total Nonfarm Employment

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

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

YoY

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

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

Contributions

Note: Our Economic Indicators Dashboard will show how our unemployment rate compares to other US metros and the US total rate when that information is released in the coming weeks.

 

November 20, 2015

Phil Blair

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


This post is part of an ongoing monthly series dedicated to the California Employment Development Department (EDD) monthly employment release and is brought to you by Manpower. Click images to enlarge in a new tab/window.

Highlights

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

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

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

Unemployment Rate

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

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

Total Nonfarm Employment

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

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

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

YoY

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

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

Contributions

Note: Our Economic Indicators Dashboard will show how our unemployment rate compares to other US metros and the US total rate when that information is released in the coming weeks.

 

November 3, 2015

Recently, EDC released its September Manpower Monthly Employment Report. Since then, the U.S. Bureau of Labor Statistics has released September employment data on all U.S. metros, which allows us to analyze some key indicators across geographies. Click on images to enlarge in a new window/tab.

HIGHLIGHTS

  • At 4.6 percent, San Diego’s unemployment rate ranked 9th among the 25 most populous U.S. metros.
  • From September 2014 to September 2015, San Diego's unemployment rate fell by -1.5 percentage points, which ranked 4th.
  • San Diego's total employment grew by 3.5 percent from September 2014 to September 2015, which ranked 2nd.
  • San Diego's employment in professional, scientific and technical services (PST) grew by 7.4 percentwhich ranked 2nd.
  • Manufacturing in San Diego grew by 2.6 percent from the previous year, the 4th highest growth rate.

[Unmployment Chart]

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

[Employment Chart]

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

[PST Chart]

San Diego's innovation economy is largely driving the region's growth. The region is outpacing all other major metros in professional, scientific and technical services (PST) growth except San Francisco. PST is a sector of the economy very heavily associated with the region's innovation clusters. Much of the companies and employment in clusters like biotechnology, biomedical products, cleantech and information technology fall within the PST sector. Employment in the region's PST sector grew by 7.4 percent since last September, the 2nd most out of any metro shown here. This figure was double the U.S. average and far ahead of other top tech markets like Seattle, Boston, and New York, which is a positive sign for the state and region's key traded clusters.

[MFG Chart]

San Diego's manufacturing sector also led most of the nation. Manufacturing is another key industry for growth in the region, not only because manufacturing jobs are accessible and pay well, but also because certain manufacturing subsectors are critical to the region's innovation clusters. From September 2014 to September 2015, manufacturing employment grew by 2.6 percent. San Diego's manufacturing employment growth was more than triple the U.S. rate of 0.7 percent. The region recorded the 4th highest growth rate among major U.S. metros. Only Detroit, Riverside, and Portland showed stronger growth than San Diego.

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

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

October 16, 2015

Phil Blair

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“The September employment report was even better than expected, as the regional economy looks to be picking up speed toward the end of 2015. We saw a disappointing national jobs report released earlier this month, but it was just the opposite in San Diego, with outstanding job growth driven by our construction, manufacturing, and technology sectors.”
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 September 2015 period. This month’s data shows that after another weak U.S. jobs report released earlier this month, San Diego showed more strong signs of growth led by important traded sectors and sectors with high-wages.

The unemployment rate fell to 4.6 percent in September, which is the lowest it has been since June 2007. The rate is 1.5 points lower than the previous year and 0.5 points lower than the previous month. The California and U.S. average rates also fell to 5.5 and 4.9 percent, respectively, but San Diego remained lower than the state and national averages.

San Diego’s rate fell both due to a large drop in persons who identified as unemployed, as well as a small seasonal drop in the labor forcesimilar to the trend from July to August, but more dramatic. More importantly though, the labor force is up by 22,300 people from September 2014 and unemployment is down 21,900 people over that same period—all amid solid and increasing employment growth.

Unemployment Rate

Just like last month, we should note that non-seasonally adjusted employment data for the summer-to-fall months is almost always filled with wild swings in the labor force, and in turn, the unemployment rate will experience big swings. This is largely due to thousands of 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. Similarly, education workers who do not work in the summer are not counted in the labor force during those months, and we see a 4,000-5,000 job spike in government employment once they return in September. 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 and unemployment rate are performing differently from the year prior. In this case, we again saw strong annual figures, indicating a healthy unemployment rate.

On that note, the region’s economy continued to steadily grow well-above three percent, despite another disappointing national report. San Diego’s total nonfarm employment grew by 3.5 percent year-over-year, adding 46,900 jobs from September 2014 to September 2015. San Diego’s growth rate was again much higher than the 2.1 percent national rate. The San Diego region is still expected to average 3.1 percent annual growth in 2015, compared to only 2.3 percent in 2014.

Total Nonfarm Employment

Year-over-year private sector growth continues to be outstanding, as private employment drove 91.5 percent of all employment growth. The total private sector grew by 3.8 percent, out-pacing the private U.S. growth rate of 2.4 percent. More than three-quarters 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).

PST services, which is strongly associated with the region's innovation economy, grew by 7.4 percent and was one of the highest growth industries in the region.

Growth in goods-producing industries picked back up in September, accounting for 17.5 percent of all private job growth. From September 2014 to September 2015, the manufacturing industry added 2,500 jobs and grew by 2.6 percent, which is higher than recent months. The ship and boat building industry continued to grow at an outstanding rate. Meanwhile, the construction industry added 5,000 jobs and grew by 7.7 percent. This is usually a period when goods-producers experience seasonal August to September declines, but in this month's report, we actually saw seasonal growth in goods-producing industriesa good sign for the economy.

YoY

Other key drivers for growth included the region’s healthcare sector, which added 7,800 jobs and accounted for approximately 18.2 percent of the region’s private job growth. After signs of slowing last month, tourism industry growth picked back up, adding 10,100 jobs and accounting for 23.5 percent of the region’s growth. Tourism growth was driven largely by bars and restaurants, which added 8,200 jobs since last September.

Given another sluggish national jobs report, the September employment report again defied national trends and showed very strong signs of a healthy economy. Employment growth picked up and the unemployment rate is the lowest it has been in more than seven years. Moreover, 21,900 fewer San Diegans are unemployed than they were in September of 2014 and 22,300 more have entered the labor force. Important goods-producing sectors like manufacturing and construction are growing at high and steady rates, which is a great sign for the region's economy. As we enter the final quarter of 2015, the region appears to be in great shape to close the year.

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.

 

October 13, 2015
Mayor Kevin L. Faulconer, Assembly Speaker Toni Atkins, San Diego Regional EDC and numerous business and civic leaders revealed the results of “The Economic Impact of San Diego’s Research Institutions” – the first study to comprehensively measure San Diego’s scientific R&D cluster. In total, San Diego’s scientific non-profit, research institutions have a $4.6 billion total economic impact on the regional economy – the equivalent of hosting 34 Comic-Cons annually.

As part of his efforts to better understand the breakthrough scientific discoveries in San Diego, Mayor Faulconer convened the research institutions in December 2014 for an informal meeting. While the Mayor was astonished by the global impact of San Diego’s scientific discovery, there was not concrete data that explained what this unique, scientific hub meant for the region’s economy.

“From Ebola to Alzheimer’s to HIV, San Diego’s research institutions are developing breakthrough therapies that are advancing healthcare and quality of life on a global scale,” said city of San Diego Mayor Kevin Faulconer. “With this study, for the first time, we not only understand the impact these research institutions have on global well-being, but the way they drive job creation and impact our economy. I look forward to continuing the work with these scientists, entrepreneurs and research institutions to ensure San Diego remains a global pioneer in scientific discovery.”

Understanding the impact: the nucleus of San Diego's innovation economy 

EDC – with the guidance of numerous research institutions including West Health Institute, Salk Institute Biological Studies, The Scripps Research Institute and many others – completed the most comprehensive analysis on San Diego’s research institutions to date. Highlights of the report concluded:

  • Research institutions impact roughly 37,000 jobs and have a combined $4.6 billion total impact on the region’s GRP every year.
  • The $4.6 billion economic impact of research institutions equates to that of 4 San Diego Convention Centers, 34 San Diego Comic-Cons, 6 aircraft carriers, or 33 U.S. Open Golf Championships every year.
  • Independent research institutes in San Diego receive more NIH research funding and generate more patents than counterparts in any metro area of the U.S.
  • All scientific R&D, including for-profit enterprises, generates $14.4 billion annually in economic impact—roughly equal to the region’s visitor industry. San Diego is the most concentrated R&D market in the U.S.
  • An estimated $1.8 billion in federal and philanthropic research funding flows to the region’s research institutions every year.

In order to assess the scale and impact of the cluster, the study looked at independent, non-profit research institutes (e.g. Scripps, J. Craig Venter Institute, West Health) and university research centers (e.g. UC San Diego, San Diego State University), which are collectively referred to as “research institutions” in the study. Not only do these research institutions drive philanthropic efforts in the region, but they also create job opportunities across a wide-spectrum of skill-levels.

“What is perhaps most impressive is the ripple effect our research institutions have on job opportunities throughout the region,” said Mary Walshok, vice chancellor of public programs and dean of extension at UC San Diego, who also served as a study advisor. “This isn’t just about high-paid scientists. Our research economy also fuels the demand for good construction, office, technical and management jobs.”

“There is often a misconception that academic institutions like the Salk Institute are too removed from everyday business to be a relevant economic driver. But that’s the furthest thing from the truth. The discoveries, technologies, medicines and highly trained people emerging from San Diego’s research sector are vital to the economy of the region—a fact that the EDC report makes very clear,” stated Dr. William Brody of the Salk Institute for Biological Studies.

A call to action

In order to capitalize on the economic impact and grow San Diego’s R&D cluster, the study calls for the following actions and strategies: build supporting coalitions with industry leaders and institutions; drive the economic development opportunities to retain, expand and attract the types of companies and investment our research community needs to compete globally, and address workforce needs by further developing technical training programs and interactive laboratories. A coalition of research institutions and civic organizations will be working with key elected officials to advocate for funding and ensure San Diego’s research narrative is carried to Sacramento, Washington, D.C. and across the globe.

“I am proud to serve as Speaker of the most visionary and innovative region in the country,” said Assembly Speaker Toni Atkins. “This study serves as testament to the drive and success of San Diego’s 100,000 individuals working in the R&D cluster – all of which improve not only the industry and economy, but also the quality of care received around the world. It is case in point how California, and more specifically San Diego, is changing the world."

Read the executive summary and full report here. 

The economic impact study was supported by a grant from the Gary & Mary West Foundation, with additional sponsorship provided by UC San Diego Extension, The Scripps Research Institute, Salk Institute for Biological Studies and Alexandria Real Estate.

 

 

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 28, 2015

GLOBAL-SD-LOGO-F-ALL

Lately trade has been on the minds of everyone, with Trade Promotion Authority’s (TPA) passage in June, discussions around the Trans-Pacific Partnership (TPP) hopefully wrapping up this month, and the ongoing negotiations of the Transatlantic Trade and Investment Partnership (TTIP). Exports and trade have become the driving force behind discussions around U.S. job growth and the nation’s continued recovery from the Great Recession.

“As U.S. firms produce and sell their world-class products to customers around the globe, each transaction strengthens our local and national economies, and creates jobs here at home.”U.S. Commerce Secretary Penny Pritzker

We know that supporting companies’ ability to export their goods and services is important for the economic prosperity of San Diego. Exports help sustain jobs, allow companies to pay higher wages, and spur more efficient development of technology and research and development. In 2014 alone, exports supported 72,716 direct and 131,605 indirect jobs.

Earlier this year, the Brooking Institution released new data for its Metropolitan Export Monitor. This data has been the basis for the development of the Go Global San Diego: Trade and Investment Plan, released in March 2015. Although the Export Monitor employs International Trade Administration data, the Export Monitor differs by examining production location vs. origin-of-movement. The full complete methodology can be found by going to the Brookings Institution’s website. Over the next month, we will be examining this new data.                          

In 2014, San Diego was ranked as the 16th largest metropolitan region in the U.S. in terms of its GDP ($206.1 billion) and the value of its real exports ($20.6 billion). However, when comparing export intensity (exports as a share of GDP) among the top 100 metropolitan regions, San Diego ranks 50th (10.03 percent). San Diego has been consistently improving this number over the last four years, ranking 60th (9.62 percent) in 2011. This ranking puts San Diego above peer metros such as Minneapolis (56th), New York (65th), Baltimore (90th), and Washington D.C. (95th).

Even when comparing San Diego’s export intensity to the top 25 metros by GDP, San Diego still falls below the median – ranking 14th. However, San Diego experienced the 2nd largest growth in its exports value, growing by more than 6.6 percent, with San Jose growing at 7.3 percent. Lastly, our region had the largest percent increase in its export intensity – growing by 3.9 percent. The only metro which came close to this level of growth was Seattle, increasing by 2.9 percent.

"San Diego’s international trade opportunities have been moving in a very positive direction since we first examined this element of our economy in 2012. But while we have seen export activity continue to grow each year, there is still a lot more we can be doing to better connect our economy to foreign markets,” said Mark Cafferty, president & CEO at San Diego Regional EDC. “With support from dozens of partners and business groups throughout our mega-region, our Go Global San Diego Initiative aims to increase exports, attract more investment and maximize our global competitiveness.”

The Go Global San Diego Initiative was launched in partnership with more than 20 business, civic, and community leaders. The initiative implements five strategies in order to: (1) drive job growth through expanding FDI and international exports; (2) deepen economic ties between the San Diego region and strategic markets; and (3) enhance our regional identity to increase the region’s global fluency and competitiveness. 

 


In the comings weeks, we will be posting more information regarding San Diego's exports. Subscribe here to receive the latest information. 

 

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.