Tag: Inclusive Growth

Inclusive Growth Spotlight: ASML

By San Diego Regional EDC,

EDC’s Inclusive Growth blog series highlights and celebrates local companies helping drive economic progress toward San Diego’s 2030 Inclusive Growth goals.

Launched in 2018 and informed by a partnership with the Brookings Institution, the Inclusive Growth initiative sets 2030 goals for San Diego related to increasing: 1) the supply of talent, 2) quality small business jobs, and 3) newly thriving households. The goals inform San Diego’s economic priorities and make the business case for economic inclusion.

Regional talent demand remains high

To maintain economic competitiveness, the region needs 20,000 students per year completing post-secondary education within six years of graduating high school.

Talent scarcity has become the new normal as the fastest-growing occupations in San Diego typically require a bachelor’s degree or higher. Compounding this challenge, student success is demographically uneven in the San Diego region. Despite making up 36% of the region’s workforce in 2024, Hispanics and Latinos only account for 23% of post-secondary degree earners in San Diego.

The workforce of tomorrow is not represented in San Diego’s growing economy; employer-led talent development and retention efforts are critical to the future of San Diego’s economy. ASML is among those working toward a solution.

Read the latest Inclusive Growth Update

 

Meet ASML

ASML is a global innovation leader in the semiconductor industry, providing chipmakers with the hardware, software, and services needed to produce advanced microchips. Those chips power the technologies we rely on every day, from smartphones and artificial intelligence to healthcare devices and clean energy solutions. ASML’s mission is to unlock the potential of people and society by advancing technology to shape a better future. In San Diego, that means not only growing its footprint, but also investing in the talent, education, and community partnerships that help our region thrive.

Inspiring interest, building opportunity

The semiconductor industry depends on a highly skilled workforce, and demand for STEM talent continues to grow faster than supply. Like all technology companies, ASML looks to recruit and retain top engineers, software developers, technicians, and other specialized professionals to sustain and advance its R&D and advanced manufacturing operations.

At the same time, the company recognizes that some students do not have many opportunities to learn about what a STEM career could look like for them. Lack of exposure, access, and professional networks can create barriers long before students begin making career decisions.

Addressing these challenges requires a long-term strategy. Talent development starts by inspiring curiosity and confidence in students well before they reach college or even high school age. That’s why ASML focuses on expanding access to STEM education, career exploration, and mentorship opportunities early on, particularly for priority students.

With partners including schools, nonprofits, and others in industry, ASML is helping create more pathways for local students to discover STEM careers and ultimately leverage technology to contribute to solving some of society’s key challenges, in San Diego and elsewhere.

Shared responsibility and intentional actions to support local talent

At ASML, talent development is viewed as a shared responsibility. As the company’s San Diego presence has grown, employing more than 2,000 locally, ASML has intentionally expanded its Community Partnership Program to strengthen the local STEM ecosystem and help create future talent pathways.

Since launching the program in 2023, ASML has grown its local portfolio to 10 active grants valued at $8 million, supporting organizations that will reach more than 25,000 students through K-12 STEM education, college readiness, career exploration, and workforce development programs.

ASML’s education partnerships span the student journey, from early science education programs with organizations like Science Delivered and the Children’s Museum of Discovery, to STEM learning with Ocean Discovery Institute and Boys & Girls Clubs of Greater San Diego. ASML also supports career readiness through Project Next, which introduces students to local employers and helps them explore education and career pathways. Through visits to ASML, students can meet employees, tour the facilities, and see firsthand what a future in STEM could look like.

ASML employees also play a direct role in the Community Partnership Program through volunteering, mentoring, and matching gifts. Last year alone, ASML San Diego employees contributed more than 2,500 volunteer hours in the community.

Why an investment in EDC

ASML values EDC as a trusted convener and partner that brings together industry, education, government, and community leaders around the issues that matter most to San Diego’s future.

“Through EDC’s events, working groups, research, and leadership forums, we gain valuable insights into regional workforce trends, economic development priorities, and opportunities to collaborate with organizations that share our commitment to inclusive growth.” — Karen Reinhardt, US Head of HR, ASML

The partnership helps ensure that ASML remains connected to the broader needs of the community while contributing to conversations and initiatives that strengthen San Diego’s innovation economy for the long term.

Join the movement

Progress on EDC’s 2030 Inclusive Growth goals is only achievable with and through the region’s employers scaling innovative and intentional solutions. Major employers like ASML are helping to collectively pave the way toward a more inclusive regional economy. Join us:

To learn more and get involved in EDC’s work, contact:

Bree Burris
Bree Burris

Sr. Director, Communications & Community Engagement

San Diego employers share 2026 talent needs across priority occupations

By Emily Chowaniec,

To better understand San Diego’s talent demand in priority industries, EDC’s Advancing San Diego program partnered with BW Research to conduct a comprehensive talent demand survey focused on business, computing, engineering, and life sciences occupations. A region-wide survey of 355 businesses in San Diego County was fielded in March 2026, prioritizing larger firms to develop a more comprehensive profile of each of the listed occupations across a wide range of industries.

Talent Demand Report 2026 updates

This data-driven effort serves to inform Advancing San Diego’s Verified Program process, providing a real-time look at the workforce needs of local employers. Results show that while businesses are ready to grow, many face ongoing challenges in finding both entry-level and non-entry-level candidates with the skills, certifications, and experience needed to fill roles.

Key findings

  • The largest share of employers considered bookkeeping, accounting, and auditor roles as the most important out of all business, computing, and engineering positions.
  • San Diego employers anticipate increased hiring across highly technical and skilled roles.
    • Employers project the largest increase in positions for software developers, assemblers, and information security analysts over the next 12 months.
  • Certifications are especially important in IT and cybersecurity roles.
    • Certifications such as Network+ and Security+ are often mandated for entry-level IT roles with others like CCNA and CEH often preferred.
  • Hiring challenges are driven primarily by a lack of relevant training and education among applicants.
    • For entry-level roles, 56.2% of employers report that candidates lack the necessary qualifications. For non-entry-level roles, 34.7% of employers say applicants lack adequate training and 27.1% report a lack of experience.
  • Lab tech hiring remains steady, with 83% of organizations planning to maintain or grow their workforce in the coming year.

Importance of work-based learning

One key survey finding was the importance of work-based learning. As employers continue to identify gaps in training and work experience in prospective hires, paid internships help bridge the gap between education and employment by giving students opportunities to apply classroom learning in real-world settings, build professional networks, and gain the experience employers seek. Work-based learning also provides value to employers: a 2025 report by Junior Achievement of San Diego County and EDC found that 92% of participating employers viewed internships as a way to expand or diversify their recruitment pipeline, highlighting how internships help develop the skilled local talent needed to support San Diego’s growing economy.

What’s next?

Advancing San Diego verifies educational programs that meet or exceed industry expectations for priority occupations across the region’s high-growth, innovation sectors. Programs that earn this designation gain public recognition and student-connection to regional employers.

The 2026 application is now open for business, computing, and engineering programs. Programs that are already verified do not need to reapply; see current roster here.

2026 timeline

  • April 21: Verified Program application opens
  • September 27: Application deadline. EDC notifies programs that passed part one of the application process
  • November: Verified Program Designation Day
    • Programs pitch to industry to share diversity, equity, and inclusion efforts at in-person event. Industry participants fill out rubrics based on program pitches as part two of the application
  • Early December: EDC announces a new slate of Verified Programs!

Apply Now

Check out Talent Demand Reports across other priority sectors to stay up to date on workforce trends in San Diego.

To learn more and get involved in EDC’s work, contact talent@sandiegobusiness.org

Emily Chowaniec
Emily Chowaniec

Coordinator, Talent Initiatives

A note from our Vice President

By Eduardo Velasquez,

San Diego’s 2026 mid-year check-in

Dear EDC investors and partners,

We start each year with a look ahead to what trends we think will be most significant to San Diego’s economy. We entered 2026 knowing our region is facing a critical inflection point—one where our growth engines are no longer propelling our region forward. This harsh reality has emerged against the backdrop of profound changes in trade policy, technological transformation, and federal funding in innovation.

Midway through the year, the significance of this inflection point is becoming clearer. What is also becoming clearer are the actions San Diego must take—with and through you—to restart our region’s economic engines and retain our global competitiveness.

Confronting the brutal facts

First, we must acknowledge what the data have demonstrated: San Diego’s economic engines have stalled out, dragging overall job growth down with it. This is because when one job is added in our innovation industries (life sciences, aerospace, tech, cleantech), another two are added elsewhere in the economy. New data shows that job declines in these innovation industries continued throughout 2025 (see chart). Overall, the region had 2,200 fewer jobs in 2025 than in 2024. Between 2024 and 2025, employment in the region increased by just 0.7 percent, which is half the annual average since 1990—meaning the pace of job growth over the last two years was four times slower than the historical average.

During the first half of 2026, San Diego has recovered some of this job loss, adding 4,200 jobs through June. However, all this growth is being buoyed by two sectors: healthcare and social assistance, and leisure and hospitality. Without these, San Diego would have 10,900 fewer jobs. While growth in these two sectors is welcome, the employment opportunities they create are both lower-paying on average and historically tend to be fueled by growth in innovation and other traded sectors as opposed to fueling growth in them.

The current composition of job growth in the region looks nothing like previous periods of economic expansion. Knowing what innovation jobs mean to our regional economy, the status quo is not sustainable.

It is not yet clear to me whether the weak job market of the last 12-18 months is reflective of current market disruptions from tariffs, inflation, and federal funding cuts or something more structural such as population decline and AI (likely a combination of all the above). Regardless, San Diego must adapt to the current headwinds and leverage our strengths to propel new job growth, foster a more resilient workforce, and cultivate the next generation of innovation.

Creating jobs

One area the federal government has clearly communicated its willingness to expand appropriations is defense. Congress is currently negotiating a policy framework for $1.15 trillion in defense spending. In addition to housing the largest concentration of military assets and personnel in the world, San Diego has demonstrated its technological primacy in areas such as autonomous vehicles and advanced materials sciences, drawing tens of billions in defense contracts annually.

The Department of War has issued new guidelines on procurement aimed at more rapidly deploying dollars and our region needs to be better positioned to compete for those funds. With support from defense primes such as Booz Allen, dozens of defense technology startups, and our two R1 universities—UC San Diego and San Diego State University—EDC will release a Defense Innovation Roadmap this October to ensure our region has a coordinated set of strategies for catalyzing investment and growing jobs in the defense industry.

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Developing talent

While job growth is a challenge in 2026, another difficulty is determining what skills workers must develop to remain competitive as AI emerges as both tool and threat. San Diego must best position itself to both ride the wave of investment to capture new technology jobs, as well as prepare our workforce to adapt and thrive amid this technological revolution. That is why EDC is excited to join Opportunity@Work and the Brookings Institution for the inaugural AI Readiness Lab, as part of a national peer learning network.

Our economy runs on exactly the kind of skilled, career-building roles that AI is reshaping fastest. We already see a widening gap between economic growth and entry-level hiring in the occupations our young workers count on to launch their careers. Getting this transition right is critical to our region’s prosperity and competitiveness, and we’re excited to learn alongside five peer regions working to turn AI from a threat into an engine of opportunity.

Learn more

Crafting the market

Earlier this year, I had the privilege of participating in a two-day workshop with some of the most thoughtful and intentional economic development practitioners in the country. The purpose of the gathering was not to “admire the problem” facing regional economies today, but rather to recognize that market forces can be deliberately shaped to produce more of what a region needs.

We know what our region needs: quality jobs, skilled talent, and thriving households. We need to better define the challenge before us to effectively mobilize business, government, and civic leaders to maximize our region’s economic prosperity and global competitiveness.

San Diego is facing new challenges and we must adapt to reinvigorate job growth and prepare our workforce for rapid transformation. Fortunately, our region has a long history of reinvention and reimagination. It’s time to do it again. Let’s get to work.

With gratitude and respect,

Eduardo Velasquez
Eduardo Velasquez

Vice President, Economic Development & Research

A note from our Vice President

By Eduardo Velasquez,

The nobility of business

Dear EDC investors and partners,

Each year, EDC organizes a leadership trip to another metro in our country to learn about their economic development challenges and draw inspiration for tackling our own as we strive toward a more competitive, and inclusive San Diego.

Earlier this summer, we traveled to Chicago with a 40-person executive delegation where we learned about the City’s network of corporate philanthropic partners focused on systemic change and a university-led, multi-state collaborative competing for the jobs of the future through its Quantum and Microelectronics Park that has drawn $100M+ in federal funding—all culminating with a moving preview visit to the Obama Center and Presidential Library.

Yet, among all the exciting efforts we learned about and all the amazing speakers we heard from, the thing that has continued to resonate with me most nearly three months later is the simple but powerful statement from former U.S. Commerce Secretary Penny Pritzker: “Building a business and growing jobs, in and of itself, is a noble cause.”

As someone who has spent the past decade working to support businesses that want to grow and expand in our region, these were words that I needed to hear. Building a business…is a noble cause.

Doing business today is hard

Small and medium-sized businesses are the backbone of our regional economy. Those with fewer than 100 employees represent 99% of businesses in our region and they collectively employ 60% of our regional workforce, which is nearly double the national average. Since the pandemic, we have seen a steady rise in new business formation while the job market has remained weak, and our economic engines have sputtered. Brave individuals have decided to take on the noble pursuit of forming their own enterprise with all the risk that it brings.

Choosing to start a business is a major endeavor. Building that business, while running that business, is a 24-hour job. Operating a business in the state of California is no easy task (insert your favorite scoff here). And with all the uncertainty that business owners face today, from tariffs to AI, growing a business has never been nobler.

Celebrating business impact

That is why last week we hosted the second annual San Diego Business Impact Awards. With more than 300 people in attendance, EDC and JPMorganChase celebrated businesses, and their owners, for continuing to persevere and for choosing to invest in growing here in San Diego.

But the Business Impact Awards go even further. We aim to not only honor businesses for growing, but also for how that growth is landing in our region.

We wanted to know: Is a business hiring local? Sourcing locally? Training the next generation of workers? Building something that draws on all the great assets that our region has to offer?

In just our second year, we received twice as many nominations as in 2025—and the quality of the submissions was remarkable.

What that tells me is that the San Diego’s business community is eager to be seen not just as growing companies (noble as it is) but also as good stewards of our region.

The ripple effects

Collectively, this year’s honorees employ more than 13,000 people. They generated more than $9 billion in combined revenue. They paid out more than $1.5 billion in wages and salaries in FY 2024-25. And year-over-year, they added more than 1,500 net new jobs to this region. Through their supply chains and labor income, these 100 businesses added more than $6 billion to the regional economy; that’s more than our Cyber industry, our RNA industry—and the equivalent of 38 Comic-Cons.

These are not just abstract statistics.

That’s 13,000 households with paychecks that contribute to local schools, dine at local restaurants—and in many cases, 13,000 people who chose to plant their careers here because one of those companies gave them a reason to.

When EDC talks about building a more competitive San Diego, a more inclusive San Diego economy, this is what we mean.

These companies represent every corner of our county—spanning life sciences, clean energy, technology, consumer brands, food and beverage, defense, and professional services. They are young companies and companies that have been around for more than six decades. But they all share a common thread: a genuine commitment to San Diego.

To our honorees, and to all the 100,000+ businesses across our region, thank you. Please keep striving, please keep investing in our region—your efforts are both noble and impactful. And we have your back.

With gratitude and respect,

Eduardo Velasquez
Eduardo Velasquez

Vice President, Economic Development & Research

Intesa partner reflects on EDC Leadership Trip to Chicago

By Maddy Kilkenny,

Maddy Kilkenny, Partner at Intesa Communications Group, was part of the 40-person delegation for EDC’s Leadership Trip to Chicago—an annual effort to draw inspiration from peer metros and reflect on San Diego’s progress toward our 2030 Inclusive Growth goals. Intesa Communications Group is a women-owned and award-winning public relations and government relations firm trusted by many San Diego leaders, and a long time EDC investor, partner, and friend.

See below for Maddy’s reflections from our 2026 Inclusive Growth Leadership Trip to Chicago.

Anthony Bourdain once described Chicago as a city that “doesn’t ever have to measure itself against any other city.”

This past weekend, I had the opportunity to join San Diego Regional Economic Development Corp. (EDC) on the 2026 Chicago Leadership Trip in the Windy City.

Each year, EDC brings together a delegation of about 40 public and private sector leaders to step outside our region, reflect on San Diego’s progress toward a more inclusive economy, and strengthen employer commitment to the 2030 Inclusive Growth goals.

From the moment we loaded the bus to our hotel, Chicago just hit different. Maybe it was the Midwest spirit. Maybe it was the confidence of a big city that knows exactly who it is. Or maybe it was the civic pride embedded in a place that grows its talent and its businesses from within—and expects a return on that investment in the form of shared responsibility to make Chicago better… For everyone.

Our delegation had the privilege to learn from the truth tellers of Chicago—leaders who spoke candidly about the city’s strengths, challenges and obligations to its residents. We heard from former U.S. Secretary of Commerce Penny Pritzker; Derek Douglas and leaders from the Civic Committee; Beth Swanson of A Better Chicago; Jarquetta Egeston of Xchange Chicago; and so many other bright, talented Chicagoans working to strengthen the economy, improve education, confront systemic racism, and build a more equitable future for their region. What stood out most was the Chicago-first mantra they all shared—the mark of a city that loves its people and is loved in return.

I left Chicago with a personal challenge—and one I hope my fellow delegates carry home, too: How can we help make San Diego better? What role can we play in building an economy that works for all San Diegans? How can we collaborate more intentionally? How can we see through the divisiveness and stay focused on a greater San Diego for all?

None of the hope and inspiration that I brought home would have been possible without the incredible team at EDC. Lauree Sahba and Enya Castañeda planned every detail to perfection. Eduardo Velasquez delivered the data and context we needed. Dr. Nikia Clarke always asked the right questions. Sang Nguyen quietly herded us cats constantly from stop to stop. Bree Burris kept us on track. And of course Mark Cafferty needs no explanation—one of the best humans I know AND the one who got us into the Obama Presidential Center ahead of its public opening next month!

A special hat tip to Amy Liu from the Brookings Institute, who was the backbone of so much of the trip and an honorary San Diegan if there ever was one. And to my fellow delegates: you are some of the best and brightest we have in San Diego, and I was honored to share this experience with you.

The trip reminded me that regional pride has to be more than a feeling. It has to show up in how we work together, how we challenge each other, and how boldly we plan for the future. This is also how we do our work at Intesa. We show up for each other, our clients and for San Diego.

Now that I’m back, I’m ready to cheerlead for our region, for our home. Let’s roll up our sleeves and make some big plans for San Diego. Who’s with me?

Learn more about Intesa Communications Group and read the original blog publication here.

A note from Mark: San Diego’s progress to Inclusive Growth

By Mark Cafferty,

Dear EDC Investors and partners,

I hope this message finds you well as we close out the first quarter of 2026. It was a shaky and unpredictable quarter for the region and the nation in so many ways. Yet through it all, our team at EDC continues to draw great inspiration from all of you as you stay committed to the success of your companies and to the health of the communities around you.

We know through our own research and data that important elements of San Diego’s economy are competitive and growing. However, we also know that we are facing a challenging inflection point: Our current growth is running parallel to the region’s persistently high cost of living, wide income gaps, and the ability for all San Diegans to live comfortably and thrive.

Simply put, our progress is not outpacing our problems. And that isn’t something to run from or ignore—but rather something to face and resolve.

As San Diego continues to see some gains toward its 2030 Inclusive Growth goals—increasing quality jobs within small businesses, increasing post-secondary education completions, and enabling more thriving households—our long-term success relies on both economic and inclusive growth. Still, and always. Without focusing on both, we risk losing talent to more accessible regions, constraining local spending, corroding our robust innovation economy, and stalling our (global) competitiveness for the future.

I invite you to explore our recently released 2030 Inclusive Growth Progress Report. The results are mixed, but the path remains clear. Every challenge presents us with an opportunity, and every opportunity puts us one step closer to a prosperous and sustainable future for our region.

With gratitude and respect,

Mark Cafferty
President & CEO
San Diego Regional EDC

2025 Inclusive Growth Update

EDC report: 2025 Progress to Inclusive Growth

By EDC Research Bureau,

In April 2026, San Diego Regional EDC released its annual Inclusive Growth Progress Report, using the most up to date and available data (2024). With new progress and bold objectives set around increasing the number of quality jobs, skilled talent, and thriving households critical to the region’s competitiveness, the report measures San Diego’s growth and future outlook, and spotlights the greatest threats to prosperity.

report at: 2025.incLUSIVesd.org

San Diego’s economy is competitive and growing—with a GRP in 2024 that reached nearly $267 billion, 2.1% higher than in 2023, making it one of the largest county economies in the United States. This value reflects production across San Diego’s key industries including defense, tech, manufacturing, life sciences, and tourism. Yet this growth runs parallel to San Diego’s persistently high cost of living, wide income gap, and stratified opportunities across racial groups. To maintain the region’s competitiveness, the benefits of growth must be felt by more San Diego households.

Smart economic development requires sustained and intentional attention to both the region’s immediate economic growth and inclusion. To guide San Diego’s economic development priorities, EDC alongside the Brookings Institution, established an Inclusive Growth Framework. Launched in 2018 and updated annually, this initiative set ambitious goals tailored to San Diego’s unique economy and communities to achieve by 2030:

Key takeaways

  • With more quality jobs in small businesses, San Diego is 87% of the way to meeting the 2030 goal. With sustained growth since 2017, the region now has a total of 228,087 quality jobs in small businesses. However, the overall proportion of quality jobs across all small businesses remains low at 28%.
  • More students are succeeding, yet the region remains around 7,000 students away from the 2030 goal. Further, only 21% of those completing a post-secondary degree are Hispanic and Latinx students despite representing 49% of current K-12 students, highlighting the persistence of racial and ethnicity disparities in accessing opportunities to develop in-demand skills.
  • San Diego has added 38,158 newly thriving households, fewer than last year and nearly 37,000 households away from the 2030 goal. Although household income continues to grow, it is still not enough to meet the cost of living—particularly for housing—in San Diego.

Read the full report here, and all previous updates at progress.inclusiveSD.org.

Join the movement

Learn more and get involved with EDC:

The Inclusive Growth initiative is sponsored by Bank of America, County of San Diego, JPMorganChase, Lifeline Community Services, Prebys Foundation, SDG&E, and Southwest Airlines.

Inclusive Growth Spotlight: Cajon Valley Union School District

By San Diego Regional EDC,

EDC’s Inclusive Growth blog series highlights and celebrates local companies and organizations helping drive economic growth and progress toward San Diego’s 2030 Inclusive Growth goals.

Launched in 2018 and informed by a partnership with the Brookings Institution, the Inclusive Growth initiative sets 2030 goals for San Diego related to increasing: 1) the supply of talent, 2) quality small business jobs, and 3) newly thriving households. The goals inform San Diego’s economic priorities and make the business case for economic inclusion.

Regional talent demand remains high

To maintain economic competitiveness, the region needs 20,000 students per year completing post-secondary education within six years of graduating high school.

While progress toward the goal has increased incrementally since 2017, talent scarcity has become the new normal as hiring demand exceeds the supply of talent across industries. Compounding this challenge, student success is demographically uneven as Hispanics and Latinos only account for 17 percent of residents over 25 years old with at least a bachelor’s degree. Employer-led talent pipeline development efforts are critical to the future of San Diego’s economy, and Cajon Valley Union School District is among those working toward a solution.

Meet CVUSD

The Cajon Valley Union School District (CVUSD) serves approximately 18,000 students across 28 schools spanning more than 60-square-miles in East San Diego County. Located in one of the most culturally and linguistically diverse regions of San Diego, the district has earned national recognition for its innovative approach to education, its commitment to whole child development, and its focus on preparing students for meaningful futures. At the center of the district’s work is a mission that guides every aspect of its approach to education: Happy Kids, Healthy Relationships, on a Path to Gainful Employment.

This mission reflects a belief that schools must do more than deliver academic content. Schools must help young people understand who they are, what they care about, and how their strengths can translate into meaningful contributions in the world.

An opportunity to re-define career preparedness

CVUSD serves one of the most diverse student populations in San Diego County. Many students are multilingual learners, newcomers to the United States, or the first in their families to navigate American education systems and postsecondary opportunities.

At the same time, San Diego faces a significant workforce development challenge, requiring education systems to rethink how they prepare students for the future. Historically, K–12 education and workforce development systems were not designed to respond dynamically to labor market changes, emerging industries, or employer needs. CVUSD has addressed this challenge by intentionally redesigning the student experience around identity, relevance, and future readiness.

An innovative approach to career-connected learning

Over the past decade, CVUSD has become nationally recognized for its World of Work framework—an innovative system that integrates career awareness, strengths discovery, and real-world learning experiences throughout the K–8 educational journey. Using the Realistic, Investigative, Artistic, Social, Enterprising, and Conventional career development assessment and model, students research professions aligned with their interests and strengths, interview professionals about their work, and present their findings through projects that connect classroom learning to real professions and pathways.

Career literacy is embedded throughout the curriculum. Students encounter real-world applications within reading and writing assignments, research projects, collaborative problem-solving challenges, and presentations that strengthen both academic and professional communication skills. Equally important, students regularly interact with professionals across San Diego’s major industry sectors.

This approach helps students see purpose in their education. In a recent district survey, 73% of students in fourth through eighth grade agreed with the statement, “The things I’m learning in school are important to my future.” This data reflects a powerful shift in how students experience learning, understanding that what they are studying today connects directly to the opportunities they may pursue tomorrow.

To expand these opportunities even further, CVUSD recently launched the World of Work Foundation, a nonprofit initiative designed to connect schools, employers, and community organizations around a shared vision for workforce development, and therefore expanding mentorship networks, employer partnerships, youth apprenticeship opportunities, and work-based learning experiences for students throughout the region.

In a region working to close opportunity gaps and build a stronger talent pipeline, CVUSD is preparing young people not only to graduate but to thrive.

Join the movement

Progress on EDC’s 2030 Inclusive Growth goals is only achievable with and through the region’s employers scaling innovative and intentional solutions. Anchor institutions like SDG&E are helping to collectively pave the way toward a more inclusive regional economy. Join us:

To learn more and get involved in EDC’s work, contact:

Bree Burris
Bree Burris

Sr. Director, Communications & Community Engagement

2025 Thriving Households update: Affordability pressures persisted

By Alberto Fragoso & Sofia Nelson-Ferezi,

San Diego has continued to show progress in reaching our Inclusive Growth goals with 2024 median household income experiencing a 29 percent increase since 2019. Despite promising recent growth in annual earnings across the county, San Diego remains one of the most expensive metros in the U.S. By the end of 2024, households needed an income exceeding $235,000 to afford the median-priced home, a threshold that, combined with elevated interest rates, places homeownership further out of reach for most San Diegans.

On average, homeowners faced housing costs of $4,748 per month in 2024, 55.5 percent higher than 2019 costs. Because household income growth has failed to keep pace with the cost of living, the gap between local housing costs and incomes continues to widen despite home prices stabilizing.

Renters face similar pressures. Average rent prices reached $4,039 in 2024, increasing by 8.3 percent over a year and 38 percent over five years. As household income struggles to catch up to increasing prices, 58 percent of renters remain cost-burdened, spending more than 30 percent of their income on rent.

Progress toward the goal

By the end of the decade, EDC estimated the region would need to add 75,000 newly thriving households. To be considered ‘thriving’ in 2024, a renter-occupied household needs at least $84,816 in household income per year, while a homeowner-occupied household needs $139,872 per year.

As of 2024, San Diego has added 38,157 newly thriving households since tracking began—a decrease from 2023 levels. The decline reflects eroding household purchasing power amid continued price pressures on essential goods including housing, groceries, and energy.

Addressing the supply challenge

To increase housing supply, local jurisdictions have made notable progress in streamlining permitting processes. Nearly 15,000 housing permits were approved in 2024, demonstrating continued momentum despite a slight decrease from 2023. However, the number of permits for moderate income housing dropped by 18.8 percent, highlighting the persistent challenge of the “missing middle” and insufficient affordable housing production. Furthermore, permits for low and very low income households dropped 47.4 percent compared to 2023.

Accessory Dwelling Units (ADUs) represented nearly 27 percent of all permits approved in 2024—up from 22 percent in 2023—and 66 percent of all permits approved at moderate level pricing. However, those priced above moderate continue to make up most of ADU permits. While ADUs offer an opportunity to increase housing stock in existing single-family home lots, they’re unlikely to solve the region’s housing crises alone.

Developers cite several obstacles hampering housing production. The multifamily development market has become oversaturated, reducing incentives for new entrants. Current policies favor small units that do little to address the scale of San Diego’s housing needs. Rising construction costs, coupled with high insurance premiums and litigation risks, have the power to prevent projects from ever breaking ground.

At a broader level, California continues to experience a decline in construction employment, with a 1.9 percent annual decrease in 2024. This could be a potential contributing factor to slowed construction in coming years. This is especially relevant in states like California where the construction workforce is particularly reliant on immigrant workers. In fact, 40 percent of the construction workforce is comprised of foreign-born labor, potentially affecting construction-related labor under the current immigration enforcement landscape.

Extended timelines from permitting to groundbreaking further diminish project viability. Addressing these barriers will require better incentives for risk-taking and access to more flexible financing options.

Creative solutions for persistent challenges

Recent announcements signal significant office space vacancies in downtown San Diego. Major real estate firms including the Irvine Co. have been divesting San Diego office towers since 2024, reflecting broader shifts in the commercial real estate market. This challenge presents an opportunity.

Converting vacant office space into housing could revitalize areas where commercial properties no longer contribute meaningfully to the local economy. However, conversion costs can be prohibitively high. In many cases, demolishing outdated office buildings to construct multifamily housing may prove more economically feasible.

Similarly, conversions of single-family home lots into multiple single-family lots could have significant impact on housing affordability. According to LISC’s single family lot size reduction analysis, allowing multiple townhomes on one single family lot could lower home prices by 42 percent. Additionally, if 1.4 percent of the City of San Diego’s current single family lots were allowed to build multiple townhomes on one single family lot, the amount of new property taxes generated would be approximately $450 million each year, just for the County of San Diego. These innovative efforts require streamlined permitting, supportive re-zoning, and infrastructure assessment from local governments.

Identifying which vacant office properties are suited for conversion—or demolition and redevelopment—should be the first step. Addressing San Diego’s supply-constrained market will require strong public-private collaboration and regional strategies to explore innovative solutions at the scale needed to meet the region’s housing demands.

In February 2026, EDC’s Thriving Households Roundtable provided an opportunity to discuss employer-led solutions to these pressing challenges and to hear about innovative initiatives from local leaders such as LISC, cREate Development, and Center for Housing Policy and Design.

Join the movement. Endorse our Inclusive Growth goals.

Bree Burris
Bree Burris

Sr. Director, Communications & Community Engagement

A note from Taylor: San Diego’s workforce in 2026

By Taylor Dunne,

Dear EDC investors and partners,

Last month, EDC’s Vice President of Economic Development and Research Eduardo Velasquez reminded us that San Diego stands at an inflection point—where technological transformation is colliding with long‑standing economic challenges in ways previously unseen. His note highlighted a region defined by promise and pressure: Slowing innovation‑sector job growth, rising household incomes shadowed by affordability constraints, and AI reshaping the very nature of work.

A month into 2026, more questions than answers remain, especially when it comes to talent: What is the role of post-secondary education in our changing region? How is AI shifting jobs and industries? And what does this mean for San Diego’s early career talent, our region’s leaders of tomorrow?

Built on talent—but facing new realities

San Diego’s economic engine has always been its people. With more than 100 research and education institutions, our region has long produced the skilled talent that fuels innovation, defense, life sciences, and advanced manufacturing.

The good news: More San Diego students are completing degrees and credentials than ever before. The region has sustained progress in completions, even as the pandemic’s long‑term impacts remain murky. But the data also makes one thing clear: Post-secondary education is more critical than ever. Jobs requiring a bachelor’s degree or higher continue to grow at a significantly faster rate than those requiring less education. In fact, in 2025, San Diego added six times more jobs requiring a bachelor’s degree or more versus those requiring an associate degree or less.

Additionally, the growth of legacy industry clusters that have served as the backbone of San Diego’s global competitiveness—tech, life sciences, and manufacturing—is slowing down. While bright spots remain in emerging industries like cleantech and aerospace (namely defense technology) that are critical to the region’s future competitiveness, transformations in these industries and varied levels of AI integration represent significant changes to the entire U.S. economy. Their effects will ripple throughout the whole workforce. 

Take the cleantech industry, for example, as policy-backed efforts to decarbonize in California are leading to more electrification. As buildings modernize, we might expect increased need for electricians, while the need for gas-line plumbers decreases. The auto mechanic historically focused on combustion engines must now become familiar with hybrid and electric motors. And the manufacturing company that embeds machine learning and automation now requires a person who can analyze and tell a story with the resulting data.

A future workforce that doesn’t yet see a future

Across the U.S., young college‑educated workers are facing a “unique convergence of structural forces” that have severed traditional entry points into white‑collar work.

AI is accelerating this shift. Automation and augmentation are happening within jobs, not just across them. The occupations where automation potential is high are the same ones where augmentation potential is high—meaning AI may not necessarily eliminate an occupation, but rather transform how an employee executes their tasks. 

With lower barrier to entry tasks most exposed to automation, the entry-level or new graduate workforce risks being edged out of opportunities to launch. Meanwhile, the nature of the tasks exposed to augmentation will require mid-level workers to continue upskilling to remain competitive. 

As for long-term impacts? It’s too early to tell. San Diego’s labor market data does not yet reflect an overhaul of entry-level roles. Job growth across innovation industries at all levels has declined over the last few years, and while entry-level job growth has declined slightly faster, it has not been the job elimination of our nightmares. 

What remains constant in our conversations with employers across industries and occupations is a need for soft skills that will never be automated. Skills like communication, empathy, and problem solving are more fashionable than ever. In fact, this demand has been so persistent that workforce developers and educators have taken to calling these “durable” skills—though figuring out how best to cultivate them in students may be the next great challenge. 

In a time of transitioning tech, too, regional employers are doubling down on opportunities to future-proof their workforce. We’ve heard from San Diego companies that are making a deliberate effort to traditionally train early career employees in the skills AI could support, both to strengthen institutional knowledge and develop future leaders. And local tech heavyweights are continuing to proactively invest in both tomorrow’s talent and technology, maintaining internship programs that convert as many as three in four interns to full-time roles and leveraging new technologies early to instill technical skills in the emerging workforce.

Lean in with us

To meet these challenges, EDC is doubling down on initiatives that align education, industry, and talent. Through regional and even national partnerships, we will continue to facilitate work-based learning like internships and apprenticeships, and equip the region to better understand its labor market needs.

Here’s how you can lean in:

  • Host a summer intern from a Verified Program: All intern hosts will work with an employer of record and have access to a pre-vetted batch of resumes. Small businesses may qualify for interns’ wages to be subsidized or fully covered. Learn about our Advancing San Diego internship program.
  • Hire from Verified Programs in San Diego: These local programs are employer-verified for teaching in-demand skills as well as serving a diverse student population. To connect with a Verified Program, reach out to EDC.
  • Help us collect critical regional talent data: With so many remaining questions, it has never been more important for training and education institutions to keep a pulse on future talent demand. Our talent data dashboard, annual talent survey, and talent demand reports help local education programs prepare San Diegans with the skills your company needs. If your company is experiencing shifts in talent needs, we want to hear about it.

San Diego’s future workforce is diverse, ambitious, and full of potential—but only if we build the systems that allow every resident to participate in and benefit from our innovation economy.

Your collaboration and investment—whether through hiring, training, curriculum partnerships, or direct support of EDC initiatives—continues to ensure that San Diego can cultivate the talent that creates, attracts, and retains cutting‑edge companies, strengthens our innovation clusters, and secures San Diego’s economic future.

Contact SDREDC
To learn more, please contact us.

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