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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.

 

August 3, 2015

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

HIGHLIGHTS

  • At 5.0 percent, San Diego’s unemployment rate ranked 10th among the 25 most populous U.S. metros.
  • From June 2014 to June 2015, San Diego's unemployment rate fell by -1.4 percentage points, which ranked 3rd.
  • San Diego's total employment grew by 2.8 percent from June 2014 to June 2015, which ranked 10th.
  • San Diego's employment in professional, scientific and technical services (PST) grew by 6.1 percentwhich ranked 3rd.
  • Manufacturing in San Diego grew by 2.8 percent from the previous year, the 6th highest growth rate.

[Unmployment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the June 2015 period for all U.S. metro areas. At 5.0 percent, San Diego County’s unemployment rate fell by 1.4 points from this time last year. This was the 3rd largest drop in the nation, among the 25 most populous U.S. metros. That fall put San Diego's rank at 10th among major U.S. metros and it remained below the U.S. overall rate of 5.5 percent.  

[Employment Chart]

When looking at employment growth, San Diego remained well above the national average. From June 2014 to June 2015, the region's employment grew by 2.8 percent, which ranked 10th among the 25 most populous U.S. metros. The U.S. average growth rate was at only 2.1 percent. Growth has slowed substantially across the U.S. in the past few months, but has since picked up the pace. San Diego has consistently outpaced the national employment growth this year and has been among the top 10 competitive metros in the nation.

[PST Chart]

San Diego's innovation economy is largely driving the region's growth. The region is outpacing nearly all other major metros in professional, scientific and technical services (PST) growth. PST is a sector of the economy very heavily associated with the region's innovation clusters. Much of the companies and employment in clusters like biotechnology, biomedical products, cleantech and information technology fall within the PST sector. Employment in the region's PST sector grew by 6.1 percent since last June, the 3rd most out of any metro studied here. This figure was nearly double the U.S. average and only behind California peers San Francisco and Riverside, which is a positive sign for the state and region's key traded clusters.

[MFG Chart]

San Diego's manufacturing sector growth picked up substantially in June. Manufacturing is another key industry for growth in the region, not only because manufacturing jobs are accessible and pay well, but also because certain manufacturing subsectors are critical to the region's innovation clusters. From June 2014 to June 2015, manufacturing employment grew by 2.8 percent. San Diego's manufacturing employment growth was more than double the U.S. rate of 1.3 percent. The region recorded the 6th highest growth rate among major U.S. metros. This marks the first month on record that manufacturing employment grew at or even near the pace of the overall regional economy. San Francisco and Riverside also experienced outstanding growth in their manufacturing sectors, which is a good sign for the state's manufacturing economy.

San Diego's economy continues to track well above the U.S. average and many of its peers. Unemployment is lower than average and the region experienced one of the largest annual drops in the nation. Meanwhile, San Diego's PST industry continues to be among the fastest growing in the nation. It will be interesting to see if the region can continue to experience such stellar manufacturing growth as the industry continues to rebound. 

EDC will be releasing the Manpower Employment Report with July 2015 data for San Diego on Friday, August 21stThank you to Manpower-SD for their ongoing support of EDC's employment trends research.

July 17, 2015

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“The region’s labor force continues to grow substantially as jobs are being added at a very solid pace. Despite a slight climb in the unemployment rate, all signs point to a positive economic picture for the region going forward.”
Phil Blair, President and CEO
Manpower San Diego


Highlights

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

The California Employment Development Department (EDD) released statewide county employment data today for the June 2015 period. This month’s data shows that while unemployment climbed slightly in June, the labor force grew and the economy continued growth at a steady rate.

The unemployment rate climbed back to five percent for the first time since March. At 5.0 percent, the rate is 1.4 points lower than the previous year and 0.1 points higher than the previous month. The California average rate remained steady at 6.2 percent, while the U.S. average rate climbed to 5.5 percent, meaning San Diego remained much lower than the state and national averages.

Unemployment Rate

The unemployment rate climbed in part due to a rising labor force. This trend is typical in the region, as both public and private seasonal education workers tend to lose work in the summer months. Education accounted for 3,000 lost jobs from May to June, but the sector has grown nearly three percent since June of last year. While a seasonal up-tick in unemployment is common during this period, the 0.1 point change was a much lower change than in previous years. The unemployment rate climbed 0.3 points in 2014 and 0.5 points in 2013 during this same period.

From a year-to-year or non-seasonal perspective, the region’s economy continued to grow around 3.0 percent, adding 38,500 jobs from June 2014 to June 2015. The year-to-year growth rate has been consistently above the 2014 annual average of 2.2 percent. So far in 2015, that annual average is at 3.0 percent through June, compared to the U.S. average of only 2.2 percent.

Total Nonfarm Employment

The private sector economy again accounted for more than 90 percent of the year-to-year job growth and grew by 3.2 percent. This rate also outpaced the U.S. growth rate, which was 2.6 percent over that same period. This job growth continued to be fueled by key sectors. Construction grew by 5.7 percent and added 3,600 jobs. One of the region’s key manufacturing sectors, ship and boat building, grew by 18.0 percent and added 1,100 jobs.

We’ve continued to discuss the stagnant growth in overall manufacturing employment in these reports, but June showed promise for the region’s manufacturing industry. From June 2014 to June 2015, the industry added 2,700 jobs or 2.8 percent growth. This is the highest annual growth rate for the industry that we have on record, going back to 2001.

Manufacturing

Innovation service sectors have continued to show high job growth through 2015. The professional, scientific and technical services (PST) sector grew by 6.0 percent year-to-year, and accounted for 22.1 percent of all annual private job growth—the most of any sector in the region. This sector represents many of our innovation employers. Scientific research and development services, a subsector of PST that represents many cleantech and life science companies, showed slower growth this month compared to previous months this year.

Other key drivers for growth included the region’s health care sector, which added 6,900 jobs and accounted for approximately one-fifth of the region’s private job growth. Employment services or staffing in the region grew by 1,300 jobs and has been steadily increasing all year. Finally, while the tourism industry had a slower month than usual, it still accounted for 14.7 percent of the region’s private growth.

Year-to-Year Growth

While the headlines this month will show a climb in the unemployment rate, the story behind that figure is a positive one. A climb in unemployment from May to June is typical, but the fact that the climb was so slight was atypical and a good sign. The labor force continued to grow above one percent annually after years of steady decline. Finally, manufacturing industry employment is showing solid growth after years of slow growth or decline.

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

 

June 19, 2015

Manpower_Monthly

“Unemployment claims are nearly a fifth of what they were a year ago, with more than 17,000 fewer San Diegans unemployed. Meanwhile, the labor force has grown by more than 26,000, which shows that people are optimistic about getting back to work in the region.”

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 May 2015 period. This month’s data shows that unemployment remained below five percent in May, as the economy continued to grow at an accelerated rate.

The unemployment rate remained below 5 percent at 4.9 percent. The rate is 1.3 points lower than the previous year and 0.1 points higher than the previous month. The U.S. and California average rates also increased to 5.3 percent and 6.2 percent respectively.

Unemployment Rate

While the unemployment rate experienced a slight uptick, the labor report was generally positive. Unemployment claims fell by 17,200 since May 2014, an 18.2 percent drop. At the same time, the labor force grew by 26,500 from May 2014 to May 2015 as the employers added more than 42,000 jobs. While labor force growth in May is typical in the region, the scale is much greater than in past years. This indicates that job seekers are becoming more confident as employers continue to add jobs

When looking at monthly or seasonal employment, San Diego County employers added 9,500 jobs from April to May. Goods-producers like construction and manufacturing added 2,300 jobs or roughly one quarter of all employment, while tourism accounted for more than half of the seasonal growth.

Unemployment Claims

From a year-to-year or non-seasonal perspective, the region’s economy grew by 3.2 percent, adding 42,400 jobs from May 2014 to May 2015. The year-to-year growth rate in San Diego continued to outpace the national average of 2.2 percent. Employment growth slowed slightly in the past few months, dipping below three percent, so this month's report is a positive sign that the slowing wasn't a pattern.

The private sector economy accounted for 93.9 percent of the year-to-year job growth and grew by 3.6 percent. This rate also outpaced the U.S. growth rate, which was 2.6 percent over that same period. This job growth continued to be fueled by key sectors and employment did not fall in any sectors in the regional economy. Construction grew by 7.1 percent and added 4,500 jobs. Ship and boat building grew by 18.3 percent and added 1,100 jobs. While manufacturing growth has been a concern in recent reports due to slow growth, the industry picked up the pace in May, growing by 2.2 percent, the highest annual rate since March of 2013.

Manufacturing

Innovation service sectors have continued to show high job growth through 2015. The professional, scientific and technical services (PST) sector grew by 6.6 percent year-to-year, and accounted for approximately one-fifth of the annual job growth. This sector represents many of our innovation employers. More specifically, scientific research and development services, a subsector of PST that represents many cleantech and life science companies, grew by 4.3 percent since last May.

The region’s tourism industry continued to show high year-to-year and seasonal growth as well. The leisure and hospitality industry added 8,500 jobs from May 2014 to May 2015, which is about 4.8 percent growth. The industry added 4,900 jobs from April to May, likely due to the ramping up of tourism season in the region. Employment services or staffing agencies experienced high growth in May. The industry added 500 jobs from March to April and 1,200 jobs since the previous year as people are getting back to work.

Year-to-Year Growth

The May labor market report was a great sign for the continued health of the region's economy. While the unemployment rate increased, it remained below five percent amid high labor force growth. Unemployment claims continued to fall year-to-year as the economy continued to grow at a pace well-above the national average. Growth remains concentrated in our traded economy sectors, like tourism and innovation, and in middle-to-high wage industries, like health care and construction. It will be interesting to see if this these positive signs will lead to continued growth in labor force through the summer months.

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.

 

June 11, 2015

Recently, EDC released its April Manpower Monthly Employment Report. Since then, the U.S. Bureau of Labor Statistics has released April 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 4.8 percent, San Diego’s unemployment rate ranked 11th among the 25 most populous U.S. metros.
  • From April 2014 to April 2015, San Diego's unemployment rate fell by -1.3 percentage points, which ranked 4th.
  • San Diego's total employment grew by 2.6 percent from April 2014 to April 2015, which ranked 7th.
  • San Diego's employment in professional, scientific and technical services (PST) grew by 6.4 percentwhich ranked 4th.
  • Manufacturing in San Diego grew by 1.9 percent from the previous year, the 9th highest growth rate.

[Unmployment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the April 2015 period for all U.S. metro areas. At 4.8 percent, San Diego County’s unemployment rate fell by 1.3 points from this time last year. This was the 4th largest drop in the nation, among the 25 most populous U.S. metros. That fall kept San Diego's rank at 11th among major U.S. metros and it remained below the U.S. overall rate of 5.1 percent.  

[Employment Chart]

When looking at employment growth, San Diego remained well above the national average. From April 2014 to April 2015, the region's employment grew by 2.6 percent, which ranked 7th among the 25 most populous U.S. metros. The U.S. average growth rate was at only 1.4 percent. Growth has slowed substantially across the U.S., but San Diego has consistently outpaced the national employment growth this year and has been among the top 10 competitive metros in the nation.

[PST Chart]

San Diego's innovation economy is largely driving the region's growth. The region is outpacing nearly all other major metros in professional, scientific and technical services (PST) growth. PST is a sector of the economy very heavily associated with the region's innovation clusters. Much of the companies and employment in clusters like biotechnology, biomedical products, cleantech and information technology fall within the PST sector. Employment in the region's PST sector grew by 6.4 percent since last April, the 4th most out of any metro studied here. This figure was nearly double the U.S. average and only behind Seattle and California peers San Francisco and Riverside, which is a positive sign for the state and region's key traded clusters.

[MFG Chart]

San Diego's manufacturing sector growth picked up a bit in April. 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 April 2014 to April 2015, manufacturing employment grew by 1.9 percent. San Diego's manufacturing employment growth was above the U.S. rate of 1.6 percent. The region recorded the 9th highest growth rate among major U.S. metros. San Diego's position remained unchanged this month, but it's employment growth is much higher than it has been in past months. In the previous 12 months, the region's average annual growth rate was 1.3 percent, so the 1.9 percent growth recorded in April is a good sign for manufacturing employment.

While overall employment growth and growth in our manufacturing sector again wasn't comparatively stellar, the region's economy is still generally tracking well above the U.S. average and many of its peers. Unemployment is lower than average and experienced one of the largest annual drops in the nation. Meanwhile, our PST industry continues to be among the fastest growing in the nation.

EDC will be releasing the Manpower Employment Report with May 2015 data for San Diego on Friday, June 19thThank you to Manpower-SD for their ongoing support of EDC's employment trends research.