Addressing the talent gap through inclusive innovation

A regional call to action

In May, San Diego Regional EDC hosted its quarterly convening on the Inclusive Growth goal focused on skilled talent. With more than 50 leaders from private companies, educational institutions, and nonprofit organizations, the discussion focused on creative ways to grow San Diego’s innovation economy workforce. Participants engaged in critical conversation about the ways work-based learning, credit for prior experience, and new forms of education funding will help the region reach its skilled talent goal.

Within the Inclusive Growth framework, the talent goal is the only one measured in annual cohorts. Each year, EDC tracks the number of San Diegans completing a post-secondary education within six years of high school graduation. The goal is to see 20,000 newly skilled workers in San Diego each year.

Post-secondary education completions include certificates, associate’s degrees, bachelor’s degree and post-graduate degrees. The data focuses on students that completed high school in San Diego County, capturing their post-secondary completions regardless of where they went after high school graduation. The goal is driven by two factors:

  1. A thriving innovation economy and evolving technology in every sector mean that most of the jobs being added to the economy require a post-secondary degree.
  2. As San Diego’s high cost of living continues to threaten talent attraction into the region, it is crucial to ensure access to quality jobs for current residents.

For a full breakdown on the purpose of the goal, take a look at the original report.

The goal update

Of the 31,510 students that graduated from a San Diego high school in 2018, 12,850 of them had completed a post-secondary education by 2024. While we did see a one percent decrease from the last report, completions have generally remained consistent following the largest recorded increase from 2020 to 2021. We are not yet seeing the impacts of the COVID pandemic, and likely will not for another two years.

San Diego K-16 Students have sustained PSE completion rates

A double-click into degree completions

When we look one layer deeper at the students that completed a post-secondary degree by 2024, the data reveals good news for San Diego. The demographic distribution of degree-completers is generally reflective of the region’s demographics, and the areas of study are evenly distributed, with Business Administration boasting the highest portion of graduates. Nevertheless, when comparing the types of degrees conferred from 2020 to 2023, there was a decrease in bachelor’s and associate degrees and a significant increase in awards of less than two academic years. With most of the jobs being added in San Diego’s innovation economy requiring a bachelor’s degree, there is a crucial need for stackable credentials. These credentials would allow certificate holders to follow the path to a bachelor’s degree but offer the option to pause along the way while still being qualified for a good job.

The ability to move between the education system and a career is a win for everyone involved. Employers often struggle with unrealistic expectations or an inability to apply theory when hiring people from the academic system with little to no time in industry. On the student side, the cost of getting an education can be a barrier to student completion. Many people benefit from programs that are broken up into more “bite-size pieces,” allowing them to save up between sections/courses. Notably, education institutions that receive additional funding for successful student completion are able to count the same person multiple times when programs are broken up into smaller pieces. This opens the door for more funding opportunities.

Bachelor’s degree completions decrease despite that being the most in demand for new jobs

Talent is evenly distributed, opportunity is not

Despite being an epicenter for innovation and groundbreaking ideas, not all of San Diego’s residents have access to that innovation economy. Poverty disproportionately affects people of color, leading to barriers in educational attainment and the ability to compete for innovation jobs.

Additionally, shrinking high school class sizes mean that the portion of high school graduates going on to complete a post-secondary degree will need to increase for the region to meet its annual goal of 20,000 new skilled workers.

All of this is compounding to create a challenging hiring environment for employers. Even when the economy is facing higher levels of unemployment, the long-term trends around skill alignment and the need for more workers with a post-secondary education remains constant.

As mentioned before, one potential solution is for the region (and the country) to invest in more ways for learners to obtain industry-recognized degrees and credentials. Credit for prior learning or experience, dual-enrollment, and generally improved alignment across education systems become critical.

Innovation economy demographics are not reflective of regional demographics, or the workforce of tomorrow

Addressing the talent gap with strategic partnerships

During the May roundtable, a few partners were able to share how they are working to integrate the education and work journeys for participants.

  • Companies like Vertex Pharmaceuticals, in partnership with Junior Achievement of San Diego County, offer high school internship programs to support students in exploring the professional world and understanding their career aspirations before ever leaving the K-12 system.
  • The community college system is working with employers like GKN to build an apprenticeship hub the enables more earn-and-learn models without the headache that often comes with standing up a registered apprenticeship.
  • Organizations such as Family Health Centers of San Diego have been exploring loan forgiveness as a retention tool for staff, while ASML is investing in internal upskilling to support employee advancement and long-term workforce development.

Call to action

EDC cannot do this work alone. Progress on the 2030 Inclusive Growth goals is only achievable with and through the region’s employers scaling innovative and intentional solutions. If you want to be a part of the incredible group of organizations that are carrying the torch to 2030, EDC invites you to endorse the goals, use data tools like our talent dashboard and the progress reports to tell San Diego’s story, and share with us how you are driving progress toward an Inclusive San Diego.

Taylor Dunne
Taylor Dunne

Director, Talent Initiatives

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