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Research Blog

February 14, 2018

Last week, President Trump signed a two-year budget deal that included a hike in the debt ceiling and agreements to raise spending caps for domestic and defense programs.

For San Diego, a community where 20 percent of our GRP is tied to the military, this bill provides some stability and relief from the constant threat of continuing resolutions and sequester.

In order to better understand how fluctuations in defense spending impact our regional economy, EDC has released “Mapping San Diego’s Defense Ecosystem,” as well as a data visualization tool at SanDiego.DoDspend.com. This is the first of its kind regional analysis that focuses on the industrial composition of the defense supply chain and quantifies the number of firms and jobs that are impacted by defense spending. This project was executed as part of phase one of Propel San Diego, a Department of Defense funded grant initiative awarded to the City of San Diego.  

Specifically, the web tool provides deal flow information at the zip code level and by industry across the county. Why this matters: the 2019 budget includes two Fleet Replenishment Oilers (T-AO) priced at $1.1 billion. These ships will likely be built by General Dynamics NASSCO here in San Diego. While those contracts are awarded over a period time, by using this new tool, users can see that this funding will have a direct impact in creating more than 1,000 jobs in the shipbuilding and repair industry.

Key study findings include:

  • San Diego is the second largest recipient of defense procurement dollars in the U.S. 
  • A strong network of suppliers and access to customers are key reasons that 71 percent of firms have a favorable view of San Diego as a place to do business.
  • Defense contractor jobs have grown 6.3 percent over the last three years, and are expected to grow another 9.3 percent over the next year.
  • Since 2012, the majority of contract dollars received by the region were awarded by the Department of the Navy, each year awarding between 44 and 55 percent of total awards.
  • The majority of contract dollars were awarded to companies in the manufacturing industry, each year receiving anywhere between 47 and 68 percent of total contract dollars.


These resources provide companies, city planners, workforce agencies and economic development organizations better insights into how legislation like the bill signed into law last week can impact the San Diego community. The data has the potential to help companies prepare for new market opportunities and help communities prepare for changes in workforce demands, as has helped inform how EDC can better prioritize our limited resources in support of the region’s defense industry.

Following the successful execution of Propel San Diego’s phase one, the City of San Diego has been awarded a phase two grant for an additional $1.7 million. For more information, visit sdmac.org/propel.

Read the full study here.

 

January 19, 2018

Each month the California Employment Development Department (EDD) releases industry data for the prior month. This edition of San Diego’s Economic Pulse covers December 2017 data, including unemployment, new business establishments and job postings.
 
Highlights include:
  • The region’s unemployment rate was 3.3 percent in December, unchanged from November. The unemployment rate is nearly one full percentage point below the December 2016 rate of 4.1 percent, and the lowest since December 2000.
  • Most jurisdictions saw no change in their unemployment rates from the month prior. However, four jurisdictions did see small increases of 0.1 percent.
  • The labor force shed 7,700 workers in December, after adding 4,800 workers in November. The month’s decline effectively halved the year’s gain, which ended up 7,800.
  • Year-over-year, construction growth outpaced all other key sectors, up 4.3 percent.
 
Read the full Economic Pulse here.
December 22, 2017

Each month the California Employment Development Department (EDD) releases industry data for the prior month. This edition of San Diego’s Economic Pulse covers November 2017 data, including unemployment, new business establishments and job postings.

Highlights include:

  • The region’s unemployment rate fell to 3.3 percent in November, from a revised 3.7 percent in October. The unemployment rate is a full percentage point below the November 2016 rate of 4.3 percent, and the lowest since December 2000.
  • Every jurisdiction saw a decline in its unemployment rate in November. El Cajon and Imperial Beach saw the largest declines, both dropping 0.7 percent.
  • The labor force added 4,800 workers in November, after shedding a similar number in October. The labor force is up 8,600 compared to a year ago.
  • Year-over-year, real estate, rental and leasing growth outpaced all other key sectors, up 5.5 percent.

Read San Diego’s Economic Pulse here.

November 17, 2017

Understanding our economy begins with strong data. Lucky for us, November means lots of it. 
 
A little about the research products released this week:
 

Economic Snapshot: San Diego added 16,100 jobs year-over-year

Following an increase in employment during Q2 2017, total nonfarm employment fell 5,800, or 0.4 percent, in Q3. Job gains in the private sector helped offset some of the losses seen in local and state government. Compared to a year ago, total nonfarm employment was up 16,100, or 1.1 percent. Meanwhile, San Diego’s unemployment rate declined by 0.2 percentage points in Q3, and remained 0.6 percentage points below California’s rate and was on par with the national rate.

Key findings from the snapshot:

  • San Diego closed Q3 with an unemployment rate of 4.1 percent, the 17th lowest among top U.S. metros and below the state rate of 4.7 percent.
  • With the holiday season approaching, retail trade recorded the largest gain, adding 1,400 jobs during the quarter. Healthcare and social assistance continued to grow, adding 1,200 jobs.
  • VC dollars in the region increased 25.1 percent compared to the previous quarter.

The Quarterly Economic Snapshot analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S. This releases includes data from July to September (Q3) 2017.

 

Economic Pulse:

Each month the California Employment Development Department (EDD) releases industry data for the prior month. This edition of San Diego’s Economic Pulse covers October 2017 data, including unemployment, new business establishments and job postings.

Key Findings from pulse:

  • The region’s unemployment rate fell to 3.7 percent in October, from a revised 4.1 percent in September, and is a full percentage point below the October 2016 rate of 4.7 percent.
  • Nearly every jurisdiction in San Diego saw a decline in unemployment. Imperial Beach saw the largest decline for a second consecutive month.
  • Year-over-year, real estate, rental and leasing growth outpaced all other sectors, up 5.6 percent.