Good News of the Week – July 2, 2020

Every week, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of July 2, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

COVID-19 Survey Results: Anticipated impacts become reality

In March, we deployed a survey to assess the immediate economic impacts and evolving business sentiment in the wake of COVID-19. To assess changes over time, we deployed a follow-up survey with local partners.

Three trends stood out based on what employers told us:

  • Anticipated revenue declines and staff reductions confirmed by businesses.
  • Minority owned businesses are hardest hit but may lead recovery.
  • Telework is here to stay.

Read more.

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing

COVID-19 Survey Results: Anticipated impacts become reality, minority owned businesses hit hard, and workspace changes will continue

Earlier this year, we deployed a survey to assess the immediate economic impacts and evolving business sentiment in the wake of COVID-19.

To assess changes over time, we have deployed a follow-up survey with our partners at San Diego Regional Chamber of Commerce, San Diego and Imperial Small Business Development Center. The Downtown San Diego Partnership and National City Chamber of Commerce also served as survey partners. Information collected was from May 28 – June 8 and includes 194 valid responses.

Three trends stood out based on what employers told us:

  1. Anticipated revenue declines and staff reductions confirmed by businesses; 41 percent of businesses surveyed saw revenues decline by 81 to 100%, 93 percent saw  staffing declines of one to 50 employees.
  1. Minority owned businesses are hardest hit but may lead recovery. Long term, minority owned businesses anticipate continuing workspace changes (56 percent), teleworking (41 percent), offering online services (34 percent), and virtual programming and team building.
  1. Telework is here to stay, with 47 percent of firm surveyed reporting workspace changes to continue after the state of emergency is over.

Understanding COVID-19’s impact: an interactive visualization

Below is an interactive visualization of self-reported impacts to local employers, both in terms of employment and revenue. You can segment the data by industry, number of employees, and typical annual revenue. Additionally, please scroll over the tab to look at the breakdown of responses via zip code. Please note, this is not a representative sample – meaning we did not weigh responses operationally to the population and demographics of the region – so we strongly advise against drawing sub-regional conclusions from this data.

Survey Overview

The economic impacts of this crisis disproportionately affect the parts of our community that are disconnected from growth: communities of color and small businesses. The right recovery means focusing on efforts that benefit all San Diegans in this unique moment in time.

The overwhelming majority of firms surveyed (93 percent) were small businesses (fewer than 100 employees) and most (73 percent) had revenues of less than $1 million in 2019. Survey respondents were concentrated in the food and beverage, professional services, manufacturing, and retail industries.

Nearly 93 percent of firms surveyed saw their revenue decline, with most (41 percent) declining by 81 to 100 percent. However, more than one third expect revenues to return to 2019 levels in six to 12 months. The majority cut back on payrolls, with nearly 74 percent reducing staff hours and 60 percent reducing staff. The food and beverage industry had the most (19 percent) full time layoffs, followed by professional services (17 percent). Overall, most firms in all industries expect layoffs to be temporary, but 32 percent are still unsure. The uncertainty might be due to growing concern that the economy will fully reopen within the coming summer months, but a second wave in the fall will turn temporary layoffs into permanent ones.

Nearly 87 percent of firms surveyed applied for government (federal, state, or city) or private (company grants or bank loans) funding, and 70 percent who applied received funding. Firms that received private (company grants or bank loans) funding received more than $260,000 on average and firms that received government funding received more than $245,000 on average

Firms located in the opportunity zone represent 12 percent of survey respondents, or 24 businesses. In terms of access to capital, nearly 63 percent of firms located in an Opportunity Zone cited access to capital as a long term need in response to COVID-19, while 43 percent of all survey respondents cited access to capital as a long term need.

When asked about the changes a firm has experienced as a result of the pandemic, the top response was “scope of work”, which indicates firms are adjusting their business models and changing the range in which they operate in response to COVID-19. Unsurprisingly, in the short-term, businesses’ greatest needs are increased revenues and additional capital. While many businesses are unsure of the longer-term impact, they still anticipate needing capital and replacing staff.

Anticipated Revenue Declines and Staffing Reductions Confirmed

Most anticipated revenue impacts in the beginning of the COVID-19 pandemic were realized, even as reopening continues across San Diego County. More than 95 percent of businesses surveyed that expected their revenue to decline saw an actual decline in their revenue. Nearly 97 percent of businesses that expected their revenue to decline by 81 to 100 percent saw an actual decline of that amount.

Most anticipated staffing impacts in the beginning of COVID-19 pandemic were realized as well. More than 73 percent of firms surveyed who anticipated staff reductions actually reduced their staff. Most staff reductions were between 1 and 50 employees. More than 78 percent of those that anticipated staff reductions of one to 50 employees actually saw these reductions.

Minority-Owned Businesses

A new report shows that because minority owned small businesses have been disproportionately impacted by COVID, they may demonstrate how US businesses will ultimately adapt. These businesses are experimenting with new ways of working to ensure their employees’ safety, offering relief to employees and community members, and introducing new services. In San Diego, the top adjustments minority owned businesses made in response to the pandemic that are working well are workspace changes (56 percent), teleworking (41 percent), offering online services (34 percent), and virtual programming and team building.

There were 44 minority owned businesses that responded to the survey. Nearly all (98 percent) of minority owned businesses surveyed were small businesses with fewer than 100 employees. These businesses are concentrated in professional services, food and beverage, manufacturing, and retail – the industries hardest hit by COVID-19. The latest employment data shows that from February to June 2020, local retail, food and beverage, and professional services lost a combined 86,200 jobs. More than 90 percent of minority owned businesses have seen their revenue decline, with most experiencing steep revenue declines of 81 to 100 percent.

Workspace Future

In order to keep operating, many businesses have made changes to their physical workspace and/or are have employees working remotely. Firms surveyed expect to maintain these arrangements even after the state of emergency is lifted. Nearly 76 percent of firms surveyed report physical space as critical for operation, with most of those businesses in food and beverage, professional services, and manufacturing. Only seven percent of firms reported the pandemic has shown them that office space is unnecessary. Firms were split in regards to whether physical workspace will decrease, increase, or remain the same in the future.

Resources for you

San Diego Regional EDC, San Diego Regional Chamber of Commerce, and San Diego and Imperial SBDC offer a variety of resources to help businesses.

If you would like assistance from EDC, please use this form. Once we receive your responses, we will make every effort to reach out to you within 24 hours.

Request EDC assistance

If you are looking for general information about COVID-19, please view this page.

You can view last week’s COVID-19 survey results, as well as a full screen dashboard, here.

Advancing San Diego: What we’ve done in one year

EDC’s inclusive growth strategy is fueled by three key economic ingredients: skilled workers, quality jobs (particularly in small companies) and thriving households. Launched in 2019 with funding from JP Morgan Chase, Advancing San Diego is helping the region meet its inclusive growth goals by addressing skilled talent shortages and expanding access to quality job opportunities. Advancing San Diego partners, in lockstep with industry and education partners, recognize that each group has a role to play in developing and strengthening our local talent pool.

The challenge & the opportunity

Employers cite access to diverse, qualified talent as a top challenge within their business, relying on high-cost recruitment strategies to fill job openings. Meanwhile, San Diego is a diverse community with an education system that serves hundreds of thousands of San Diegans (10 community colleges, 5 universities, numerous non-traditional training programs). Black and Hispanic San Diegans make up more than half of our population, but are glaringly underrepresented in high-demand jobs.

Advancing San Diego introduces a collaborative, region-wide strategy to prepare San Diegans for high-demand jobs via our locally-serving education intuitions. While labor market data is improving, there is not a consistent approach for adapting education to meet industry expectations. With clear and consistent communication about skills, we collectively create an environment where San Diegans are trained for, and can access quality job opportunities, and employers can look to our local talent pool for their hiring needs.

Talent development amid a global pandemic

We felt the initial impacts of the pandemic across our entire economy. Unemployment in San Diego rose from 4.2% to 15% in a matter of months, with some industries experiencing a 50% decline in their workforce. Of the jobs impacted the most, many were already at risk of decline due to factors including automation and digitization. Further, the highest-risk jobs are disproportionately held by Black and Hispanic San Diegans.

Other industries, particularity innovation industries, took less of a hit as business held steady and employees had the option to work remotely. Jobs most insulated from the impacts of the pandemic are disproportionately held by white and Asian San Diegans.

Pre- and post-COVID-19, software developers continue to rank among the highest demand occupations in San Diego. In May, software developers were the second most advertised job in San Diego, with 3,000 postings. With numerous training options beyond a 4-year degree, software engineers can be trained relatively quickly at a much lower cost to the individual, and both training and jobs can be done from essentially anywhere with an internet connection. As such, Advancing San Diego started its work by informing education providers on skills requirements for software engineers, and is actively working with employers do the same for engineering and business professionals. 

The Advancing San Diego approach

Advancing San Diego is a demand-driven, outcomes based strategy for strengthening lines of communication between industry and education, and expanding access to talent for small companies.

  1. COMMUNICATION: employer working groups communicate hiring requirements for entry-level jobs, offer feedback to education providers on how to update & improve curriculum, and recognize “Preferred Providers” as delivering top-quality training for quality jobs. It’s through this process that employers also gain a better understanding of which local institutions they should be recruiting from.
    YEAR 1 PROGRESS: 30+ employers have actively engaged in working groups to communicate skills criteria, offer feedback on curricula, and grow the network of Preferred Provider programs. Following their participation in the working group, many employers express interest in hiring from a community college, university, or non-traditional training program where they had not previously recruited from.
    >> Skills Reports for Software Talent & Engineering Talent
  1. ADAPTATION: with better communication from industry, education programs can more effectively train talent that employers want to hire. Education programs are also recognized by employers for their ability to reach and serve a diverse student body.
    YEAR 1 PROGRESS: Employers have offered feedback to 21 education programs; 7 have been selected as Preferred Providers of software talent, and Preferred Providers of engineering talent will be announced in coming weeks. Multiple programs who were not selected are actively adapting programs for reconsideration as a Preferred Providers, which are evaluated annually.
    >> More information on Preferred Providers
  1. ACCESS: Small companies (<100 employees) often do not have the time or resources to effectively recruit top talent. At no cost to them, small companies can host paid interns from Preferred Provider programs as part of Advancing San Diego. These companies receive training for building successful remote teams, access to a software platform for managing remote interns, and interns are eligible for $500 in products or services that support their internship success. The internship program prioritizes students who are first generation college students, community college students, or residents of San Diego’s low income communities.
    YEAR 1 PROGRESS: 22 small companies from a variety of industries are hosting ASD interns remotely this summer. A second cohort of companies is currently being recruited to meet interest in this program from students, many of whom are experiencing heightened anxiety due to job-market uncertainty.
    >> The average size of companies in this cohort is 12 employees, and 54% of host companies identify as either minority, woman, disabled, veteran, or immigrant-owned.
    >> ASD has placed +40 software engineering interns from community college, university, and non-traditional education backgrounds. 100% of interns are either first-gen college students, community college students, veterans, or residents of San Diego’s low income communities.

What’s next?

Advancing San Diego was designed as a cyclical process that is responsive to the ever-changing needs of the economy. Our priority remains to better prepare the local talent pool for the jobs our economy needs, and provide better access to talent for small companies. Even once shelter-in-place guidelines are lifted, we will continue to offer paid remote work experiences as one way to remove geographic and scheduling barriers for students and companies.

However, we realize that not all jobs can be done remotely. While we will continue to focus on high-demand job areas such as software, we will lean into jobs that are economically resilient, good-paying jobs that are accessible via shorter-term training and have cross-cutting industry need. We believe this approach will increase our ability to support those most impacted by the pandemic on a path to economic stability.

For more updates on Advancing San Diego, visit the program page.

Advancing San Diego Company Spotlight: Welfie

The Advancing San Diego Internship Program launched this spring and students are now beginning their summer internship experiences in a remote-capacity amid the COVID-19 pandemic. While students’ experiences are in their early stages, we’re launching this blog series to highlight the exciting local companies that are hosting interns in the program’s first round of internships.

We sat down with Steve Moyo, CEO at Welfie. Part of the inaugural cohort of host companies, Welfie, which stands for a ‘wellness selfie’, provides a snapshot of one’s health and delivers personalized content, products and services to meet individuals’ health needs – all while connecting users with people and professionals who care.

Tell us about you and your story.

I am a Zulu. I was born in Zambia and grew up in Canada. I moved to the US for medical school where I met a wonderful woman from Michigan. After I finished my Internal Medicine residency at The Johns Hopkins Hospital in Baltimore I moved here to San Diego, for said woman. I founded Welfie as an extension of what I am most passionate about: promoting heart health and using content to tell stories. Heart disease is the number one killer in the U.S., and much like COVID-19, it has profoundly impacted the various communities that I am connected to, from healthcare workers to communities of color. Welfie is excited to be helping communities, universities, colleges and businesses, solve the immediate problem of how to “Get Back To Campus, Safely” with our symptom screening app and high quality PPE. But our long term focus is much bigger than just COVID-19, we sit primed to address important issues of our time, which include heart health, mental health and racial health disparities. We are starting here, in San Diego, focusing on local schools, businesses and communities and we call on any San Diego community leaders to contact us to collaborate.

How was your experience building a small business/startup in San Diego?

San Diego has been a great place to start a company. There are countless individuals, consultants, companies and organizations that have been essential to getting us where we are today. We are proud members of The Brink, San Diego Venture Group (now Connect), and part of the third cohort at Connect All Jacobs Center. The San Diego Angels Conference has been immensely influential as well as San Diego Startup Week. These are just a few of the organizations that have helped us grow rapidly and find our way in the entrepreneurial start up world.

How has your company pivoted as a result of COVID-19?

Welfie offers a one-stop-shop for universities, colleges and businesses to “Get Back To Campus, Safely.” We developed a simple 3-point plan:

  • Prepare – Welfie has launched a COVID-19 symptom screening app to help community leaders prepare to return. Screen employees and students daily for symptoms and fever. And create a culture of trust, care and accountability.
  • Prevent – We have a high quality PPE store backed by an FDA/NIOSH certified supply chain where you can get PPE in bulk and subscribe to the Welfie Care Package – PPE delivered to your door monthly.
  • Protect – we are developing real time data analytics and insights that will allow community leaders and individuals to assess their risk, and make the right decisions for their communities, families and themselves.The decision to pivot was easy. We had to do something. Identifying the right thing to do and where we felt we could have the greatest impact, quickly was the key. We ultimately decided to stick to our wheelhouse, education, engagement and empowering people to make the right decisions. So while I used to say ‘pivot’, I now prefer to say expanded. Welfie is a community health platform that has been focused on prevention. We started our journey focused on heart health, and have expanded to COVID-19.

How did you find out about Advancing San Diego and how has your experience been so far?

Credit goes to the local San Diego network. It was one of those weeks where mentors and advisors were all pointing me in the right direction and Advancing San Diego came up in numerous conversations. One key part of the community health platform we are building centers around health influencers, doctors, fitness coaches, perhaps even your mom. Our current software development interns are focused on building the essential features that a health influencer would need, from chat to a social health feed and including video hosting capabilities.

What is special about San Diego’s science and technology community, and the talent that drives it?

I think honesty and humility are two keywords that define the community here. People honestly want to see each other succeed. There is a great energy that San Diego is on the cusp of becoming an even stronger science and tech hub. And, that instead of exporting talent we are importing, cultivating and nurturing people and companies right here. The humility of San Diego’s leaders in science and technology to remain open to connection, mentorship and collaboration with local startups has been unique.

What words of advice would you give to the San Diego community to more effectively support entrepreneurs?

Perhaps it is the musician in me speaking but I would love to continue to see more collaboration. I think, specifically, in the area where Welfie is focused, digital health. There is a ‘stronger together’ narrative for startups to be able to succeed in the current environment. So intra-industry collaboration plus collaborating across industry as well I think can only enhance opportunity, success and is just fun.

Contact Info:

Learn more:

 

Good News of the Week – June 26, 2020

Every Friday, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of June 26, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

 

Economy in Crisis: Retail likely to rebound in June

In May 2020, the region recovered 18,200 jobs, and many shops reopened their doors to customers in June with modified social distancing protocols in place. If San Diego follows May’s record 17.7 percent jump in U.S. retail sales, it’s not unreasonable to assume a similar bounce back could emerge locally in June. Read more.

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing

San Diego science: how genomics is addressing the global pandemic

San Diego is ranked the among the top genomics markets in the nation, and we have world leaders in next-generation sequencing (NGS) in our backyard. With access to genomic experts and innovative companies who are paving the way for the future of medicine, our region has become a hotspot for transformative life-changing science.

On June 23, San Diego: Life. Changing., EDC’s talent attraction campaign, hosted a panel with scientists who are studying modern genomics to address COVID-19. This panel, titled “San Diego Science & the Global Pandemic: Genomics”, was the second event in a series of virtual panels. We made sure this panel was attractive to everyone, meaning whether you have a PhD or you are a freshman-year-biology-class drop out, the expert panelists broke down the science into layman’s terms to tell the attendees what they need to know about the future of precision medicine and COVID-19.

The panel was moderated by Kathy Lynch, Vice President, Global Government Affairs & Public Policy for Illumina, who plays a critical role in connecting San Diego science with global markets. She moderated a fascinating panel with two distinguished (and very local) scientists.

The first panelist, Gary P. Schroth, Ph.D., Vice President and Distinguished Scientist at Illumina, uses next-generation sequencing (NGS) to study genomics, gene structure, expression and regulation and applies this to projects in the fields of cancer, immunology, microbiology and infectious disease. Over the course of his career Dr. Schroth has been an author on more than 95 peer reviewed research papers and holds 19 U.S. patents.

The second panelist, Dr. James Lu, M.D., Ph.D. is the Co-founder & Chief Science Officer at Helix. Dr. Lu is responsible for the scientific teams which includes bioinformatics, laboratory operations, regulatory, quality, translational research and policy teams.

The panelists wasted no time before delving into the panel, always being cognizant that the majority of their audience did not have a science background. The topics included an overview of NGS, the history of COVID-19, how COVID-19 strains differ from one another and how the strains evolve and travel differently, testing capabilities for the region, as well as other related issues.

Through the panel, it was clear that location in the San Diego region is a top choice for genomics companies and talent. Illumina was founded here 22 years ago and the region has essentially been the heart of genomics renaissance. Many well-established companies are here, as well as tons of startups. The company density paired with the talent pool from local colleges, makes this area a hotbed of genomic activity. There is an immense amount of opportunity that breeds exceptional employees and competitive hiring practices, forcing companies to constantly up their game. 20 years ago if you were a molecular biologist, you wouldn’t have thought of San Diego as a place to start or grow your career – now, the area is at the top of your list.

As this work is all-consuming, during all hours of the day for the last six months, Dr. Gary Schroth joked that he “couldn’t remember what he used to work on” before COVID. This panel made it very clear that the genomics industry in San Diego is at the forefront of COVID research. San Diego is a hotbed of activity and a great place to start or grow your career in life science.

 

 

For more COVID-19 recovery resources and information, please visit this page.

Regardless of how this all plays out, EDC is here to help. You can use the button below to request our assistance with finding information, applying to relief programs, and more.

Request EDC assistance

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Economy in Crisis: Retail likely to rebound in June

San Diego’s May employment report roundly beat expectations. Against all odds, the region recovered 18,200 jobs lost during COVID-19. While this represents less than 10 percent of the 223,700 payrolls lost from February to April 2020, it’s still a promising sign that the local job market has turned the corner. Eating and drinking establishments, ambulatory healthcare, and construction each saw impressive rebounds in May 2020. Conspicuously absent from last month’s turnaround, however, was retail.

Clothing stores alone have accounted for more than a third of all retail-based layoffs, and nearly two in every three clothing store workers were let go from February to May. That is even more severe than the losses suffered by restaurants and bars, which cut nearly half of their staffs during the COVID outbreak.

Since February, retail jobs lost have totaled 24,000, with 300 workers let go in May. While May’s retail job losses aren’t alarming in the context of COVID, it indicates that the industry is yet to initiate a recovery.

GREEN SHOOTS

Nascent signs are emerging that retail’s long-awaited rebound moment has come. Locally, many shops reopened their doors to customers in June with modified social distancing protocols in place. This is similar to other parts of the country last month, leading to May’s record 17.7 percent jump in U.S. retail sales. Now that San Diego retailers have also reopened, it’s not unreasonable to assume a bounce back similar to May’s national retail sales figure could emerge locally in June.

An impact analysis that links local retail sales to employment suggests that if the same trends in the U.S. retail sales report were to play out here, we could expect a little more than 6,000 of the 24,000 retail jobs lost between February and May to be recovered in June alone. Sales at U.S. clothing stores rebounded an astonishing 188 percent in May. A similar spike in sales receipts in San Diego would be consistent with a June recovery of roughly 3,000—or two in five—of the 8,200 jobs lost at clothing stores from February to May. That is even more impressive than May’s 15 percent jobs rebound at eating and drinking establishments, and would bring the retail recovery more in line with other industries after a false start of sorts last month.

While this analysis is in line with the broader national trend, there are several caveats to consider.

First, the above only looks at one data point, which is a national sales report that may not reflect all of the idiosyncrasies of the San Diego retail industry. Additional data in the coming weeks, including June’s U.S. jobs report, will allow us to refine the estimates above.

Second, the 17.7 percent jump in U.S. retail sales reflects a weighted average of different—and potentially conflicting—regional trends. In other words, May’s rebound in retail sales may have been even stronger in newly reopened parts of the country than the topline figure of 17.7 percent would suggest. That is because the sales bump in those regions would have had to more than make up for steady or falling sales in other states like New York and California that hadn’t yet fully reopened.

Finally, any recovery could prove to be a false positive if thresholds are triggered that cause local, county, or state officials to pause or even walk back reopening.

Taken together, barring a spike in COVID cases, it looks like retail will finally join in the recovery. June’s employment report, which is due to be released on July 17, should ultimately confirm this. We’ll be reporting back on the health of retail and other industries as more data become available.

For more COVID-19 recovery resources and information, please visit this page.

Regardless of how this all plays out, EDC is here to help. You can use the button below to request our assistance with finding information, applying to relief programs, and more.

Request EDC assistance

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Good News of the Week – June 19, 2020

Every Friday, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of June 19, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

World Trade Center San Diego: MetroConnect announces fifth cohort

15 companies have been selected to participate in MetroConnect V, the fifth iteration of WTC San Diego’s international sales accelerator program, underwritten by Procopio and JPMorgan Chase & Co. From community-owned health and genomic data platform LunaPBC to California’s very first employee-owned brewery Modern Times, the MetroConnect V companies represent a diverse cross section of San Diego’s innovation economy. Read more.

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing

Good News of the Week – June 12, 2020

Every Friday, ‘Good News of the Week’ features a curation of positive headlines from San Diego, delivered straight to your inbox. A blend of aggregated stories from San Diego’s most trusted news sources and original EDC-created content, GNOTW provides a comprehensive recap of the region’s best stories from the past week.

For the week of June 12, 2020, here’s what we’re reading:

…and here are the events we’re (virtually) attending:

EDC welcomes Julian Parra as new board chair

San Diego is working to recover from a global pandemic and faces systemic race and equity issues that plague all metropolitan economies. To continue driving inclusive growth efforts forward, Julian Parra resumed the role of EDC board chair, after the successful and inspiring tenure of outgoing chair Janice Brown. Read more.

COVID-19 & San Diego:

Amidst everything happening in the world, we need a reminder that there’s plenty of ‘Good News’ to go around in SD. We have also compiled additional resources for businesses and individuals seeking additional guidance

For businesses:

For individuals:

Be in the know – Sign up below to receive future editions of GNOTW.

Want to submit your event or news update to our weekly newsletter? Contact us for more information.

Heather Dewis
Heather Dewis

Coordinator, Marketing

Economy in crisis: SD jobs report for May might not be as bad as initially feared

  • EDC projects SD unemployment to peak at around 16 percent in May, far less than externally produced estimates of 30 percent or more
  • While the U.S. recovered jobs in May, gains are most likely concentrated in states and cities that have reopened ahead of California
  • SD job growth will resume in the Summer months but could level off in the Fall until a vaccine is widely available

May’s employment picture might not be as bad as initially feared. A couple of weeks ago, we published a report that stated the May job cuts in San Diego could potentially be on par with the extraordinary losses suffered in April’s employment report. Those numbers were based on estimates for local retail sales along with city and county unemployment rates that were produced externally. While the estimates for more than a 50 percent decline in retail sales from February to May don’t seem unreasonable, it appears that the May unemployment rate projection of 30 percent or higher is well above the official rate to be reported by the Labor Department on June 19.

OUTLOOK IMPROVES ON INCOMING DATA

San Diego unemployment correlates closely with California continuing unemployment insurance (“UI”) claims. Continuing UI claims in California averaged about 2.9 million in May—above the 2.6 million registered in April, but certainly not enough to double unemployment across the state, including San Diego. EDC estimates that May unemployment in the region will be reported at closer to 16 percent, up from 15 percent in April and nearly half the rate estimated earlier during the pandemic.

EDC’s much lower unemployment projection is supported by incoming state and national data. For instance, the U.S. unemployment rate was reported as 13.3 percent in May, down from 14.7 percent in April. San Diego unemployment has differed from the national rate at times, but the probability that San Diego unemployment would have settled at a level at or above 30 percent given the lower national figure is, in essence, a statistical impossibility.

Additionally, the ADP national employment report showed that small business job losses slowed considerably in May from April. Small businesses employ 45 percent of the San Diego workforce, compared with just 29 percent nationally, suggesting that layoffs have abated for a wider swath of the local labor force than for the U.S. as a whole.

Taken together, the May jobs report for San Diego is anticipated to show an additional 10,000 to 15,000 job losses. While it would have been unfathomable to cheer on such a report just a few months ago, it is far less than the 150,000 to 175,000 job cuts implied by the 30 percent unemployment estimates produced earlier and also strongly suggests that the worst of the COVID slowdown has passed.

THE ELEPHANT IN THE ROOM

The May job cuts projected by EDC for San Diego may seem to contradict the official U.S. job figures released last Friday that showed 2.5 million job gains and a lower unemployment rate. However, the gains in the national report almost certainly reflect jobs that were recovered in states and cities that reopened ahead of California. San Diego has moved to reopen somewhat faster than other areas of the state. Even so, it would be surprising if local job growth is registered ahead of the June employment report, because the May employment figures were estimated on data received during the week of May 12, before local businesses began to reopen.

THE ROAD AHEAD

Barring a second wave of COVID-19, employment in San Diego is expected to start climbing again in June, but the region is unlikely to recoup the jobs lost since February for quite some time. Businesses will call back a sizable portion of their workers as they reopen, but a return to normal for the local job market won’t take hold until after a vaccine has been made widely available. After an initial bump in the summer months, job growth will likely continue at a much more measured pace until consumers begin to feel comfortable venturing out into larger crowds and businesses can once again operate at full capacity—something that most likely will not happen before 2021.

For more COVID-19 recovery resources and information, please visit this page.

Regardless of how this all plays out, EDC is here to help. You can use the button below to request our assistance with finding information, applying to relief programs, and more.

Request EDC assistance

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