Need Cyber talent? Meet our Preferred Provider programs

Last updated with new Preferred Providers June 13, 2022.

As part of its talent related initiatives, San Diego Regional EDC joined forces with San Diego Workforce Partnership and the Cyber Center of Excellence to launch CyberHire—a program designed to address the region’s growing demand for Cybersecurity talent and connect job seekers to secure meaningful careers.

Through two rounds of competitive application processes, the following education providers have been designated Preferred Providers of Cybersecurity and IT Talent, recognition from industry for their work in most effectively training the entry-level local workforce:

Preferred Providers of IT Talent:

Preferred Providers of Cybersecurity Talent:

Through the CyberHire program, participants enrolled in the Preferred Provider programs receive industry-verified certification in A+ and Network+ or Security+ along with career counseling and wrap-around services from the San Diego Workforce Partnership.

View the full Preferred Provider network

Hiring IT or Cyber talent?

If you are a San Diego business interested in hiring CyberHire participants to fill your entry-level IT and Cybersecurity roles, contact us. Through funding provided by the James Irvine Foundation, the San Diego Workforce Partnership will:

  • Place program participants in paid internships.
  • Subsidize wages for on-the-job training.
  • Host events for employers to meet CyberHire participants and showcase career opportunities at their companies.

LEARN MORE ABOUT EMPLOYER PARTICIPATION!

About CyberHire: Presented by The James Irvine FoundationCyberHire aims to transition unemployed, underemployed, and low-wage workers to quality Cybersecurity careers. CyberHire will help San Diegans launch a meaningful career that allows them to support themselves and their families.

Learn more

Want to hire CyberHire participants? Contact us:

Taylor Dunne
Taylor Dunne

Manager, Talent Initiatives

Now live: 2021 Downtown Demographics Study

The Downtown San Diego Partnership, together with the City of San Diego and San Diego Regional EDC released the findings from the 2021 Downtown Demographics Study. Among findings about Downtown’s residential population, workforce, and attractions, the study confirmed that Downtown is uniquely primed for a post-pandemic resurgence of residential and business growth due to several key factors.

“What we found most exciting about this research is that it confirmed through data what we’ve long heard from Downtown residents and stakeholders,” said Betsy Brennan, president & CEO for the Downtown San Diego Partnership. “Downtown is primed with a talented residential workforce that desires to live and work in our urban core. This, in combination with ongoing investment in world-class commercial and research spaces with access to the region’s enhanced transit system and a vibrant neighborhood lifestyle for residents, businesses and visitors alike, tells us that there is no better time to invest in Downtown.”

Authored by EDC, in coordination with UC San Diego Extension’s Center for Research and Evaluation, the update provides new data on the residential and workforce populations of San
Diego’s urban core, identifies areas for growth, opportunities for investment and advocacy, as well as a benchmark for the impacts of COVID-19. It’s intent is to serve as a helpful tool for anyone hoping to understand Downtown’s unique makeup and continue to fuel decisions to advance the economic prosperity and cultural vitality of the city’s urban core for years to come.

KEY TAKEAWAYS

  • Downtown’s residents are young, urban professionals primarily working in innovation industries and earning higher-than-average wages. The vibrancy of urban living is what they like about living Downtown and they would even prefer to work there if given the choice, though the cost of living remains higher in Downtown than the County at large.
  • Downtown’s over concentration of the most in-demand talent, combined with an increasing supply of commercial real estate, present timely opportunities for high growth companies – particularly Life Science and Technology companies securing record-breaking investment – who are seeking top talent surrounded by the amenities they desire.
  • Downtown’s legacy industry clusters are more vulnerable to economic downturns, making diversification advantageous. Job losses during 2020 erased the gains of the previous four years.
  • Downtown is widely viewed as a hub for arts and culture, as well as a top destination for professional networking and gathering.

“While San Diego’s innovation economy continues to drive the region’s recovery from the COVID-19-spurred economic downturn, we must ensure the building blocks of this recovering economy—quality jobs, skilled talent and thriving households—are accessible to more people,” said Mark Cafferty, president and CEO of EDC. “The data confirms that the pillars to build a more resilient economy through continued investment into Downtown by new, growing and diversified industries are in place and ready. More than ever, smart economic development means inclusive economic development.”

The Downtown Partnership first commissioned a demographic study in 2016, then a new tool for the organization’s advocacy efforts and the Downtown community. Providing an in-depth look at San Diego’s urban core and capturing a moment in time of the market’s recovery following the pandemic, the 2021 study was funded by the City of San Diego’s Economic Development Department, DSDP Clean & Safe Commercial Enhancement Program, Stockdale Capital Partners, and Urban Strategies Group.

Read the report

San Diego’s Data Bites: April 2022

Presented by Meyers Nave, this edition of San Diego’s Data Bites covers March 2022, with data on employment and more insights about the region’s economy at this moment in time. Check out EDC’s Research Bureau for even more data and stats about San Diego.

KEY TAKEAWAYS

  1. San Diego employers added 8,000 nonfarm payroll positions between February and March, lowering the unemployment rate to 3.4 percent from a revised 4.0 percent from one month ago.
  1. Compared to March 2021, total nonfarm employment increased by 103,600, or 7.4 percent. 49,900 additional jobs in Leisure and Hospitality led year-ago employment gains, with Professional and Business services adding 20,600 positions.
  1. Employment in San Diego lags pre-pandemic levels by only 14,000 jobs, with Leisure and Hospitality accounting for 9,000 missing payroll positions. However, industries in San Diego’s innovation economy are well ahead of where they were before COVID-19.

Unemployment rate drops below four percent in March 2022

The March employment report showed that San Diego establishments added 8,000 nonfarm payroll positions compared to February, with 5,000 of these jobs in Leisure and Hospitality. State and Local Government was the next-closest industry experiencing employment gains, with 2,000 additional jobs. These additions to San Diego’s economy drove the unemployment rate lower by 0.6 percentage points, from a revised 4.0 percent in February to 3.4 percent in March.

Health Care and Social Assistance lost the most jobs between February and March, dropping 1,300 payroll positions. Although Ambulatory Health Care Services accounted for 1,100 of the lost jobs, the industry employed more people in March 2022 compared to pre-pandemic levels in February 2020. These lost jobs could be the result of lower transmission and infection rates of COVID, requiring fewer employees to manage workloads.

Leisure and Hospitality continues to lead year-ago employment gains

Overall, San Diego employers added 103,600 nonfarm payroll positions from March 2021 to March 2022. Leisure and Hospitality accounted for 49,900 of these jobs, which is not surprising considering that companies in this industry cluster were the hardest hit by the pandemic. The fact that businesses engaged in Accommodation and Food Services are adding more jobs with each new jobs report is a sign that San Diego is recovering well from the troughs of the pandemic.
Furthermore, not a single one of the industry clusters that the EDD tracks (e.g. Leisure and Hospitality and Professional and Business Services) showed year-ago jobs losses, providing further evidence of the steady recovery of San Diego’s economy back to pre-pandemic levels. Professional and Business Services added 20,600 positions to San Diego’s economy, a 7.9 percent increase over last year’s levels. As part of San Diego’s innovation economy, industries such as Scientific Research and Development Services tend to be comprised of quality jobs, those that offer economic security by paying a wage that keeps up with the cost of living and providing employer-sponsored health benefits. Some sub-industries, however, did shed jobs compared to a year ago, such as Nursing and Residential Care Facilities (down 2,300 jobs) and Durable Goods manufacturing (down 2,000 jobs).

Employment in San Diego lags pre-pandemic levels by only 14,000 jobs

San Diego’s total nonfarm employment ended March 2022 at 1,501,100 jobs, which is 14,000 shy of pre-pandemic levels in February 2020. Although employment in Leisure and Hospitality is still 9,000 jobs lower than before COVID-19, this industry cluster has consistently led the pack in each monthly jobs report, meaning that pre-pandemic levels are just within reach. This is a strong indicator of the region’s economic recovery and health, as Accommodation and Food Services companies were the hardest hit by the pandemic.

Employment in other industry clusters, including those that drive San Diego’s innovation economy, has already surpassed pre-pandemic levels. Professional and Business Services has added almost 20,000 positions to the region’s economy from February 2020, with 7,300 of these jobs belonging to Scientific Research and Development Services. Jobs in these industries often have a high concentration of high paying quality jobs. The record year that San Diego experienced with respect to venture capital—especially in Tech and Life Sciences companies—should result in even more hiring by these companies throughout 2022.

However, the economic stimulus over the course of the pandemic has resulted in the highest inflation seen for quite some time, with the 12-month inflation rate reaching 8.5 percent in March. This led the Federal Reserve to hike interest rates by 25 basis points, with expectations of more to come. These expectations have translated into a decreased appetite for borrowing and investment, slowing the record pace at which San Diego is attracting venture capital dollars.

In fact, investment in Series A, seed, angel, and growth stages totaled just over $1 billion in Q1 2022, a far cry from the $2.7 billion in Q1 last year. Though the rate at which money is flowing into San Diego Tech and Life Sciences companies is slowing, the region will feel the ripple effects of the record-setting year in 2021 for some time to come. For example, the current demand for lab space in San Diego County is triple the amount of new deliveries that are expected in the next 12 months. As these Life Sciences companies move into new commercial space in the region, they will need to hire for newly created positions, many of which are high-paying quality jobs.

However, San Diego companies across all industries are engaged in a bitter competition for talent. Not only do high levels of inflation make San Diego a more expensive place to live, but a white-hot housing market has sent home prices through the roof, with the median home price reaching $950,000 in March, a 19 percent increase from one year ago. This high cost of living in San Diego is a tax that deters talent from staying in or relocating to the region. By addressing San Diego’s affordability crisis and building San Diego’s talent pipeline, employers can do their part to bolster the region’s resiliency and global competitiveness.

Interested in more? You may also like to read:

A note on progress from our Senior Director

“The Obstacle Is the Way”

This is the title of a book I recently started reading about applying stoic philosophy to everyday, modern life. The core teaching is to turn adversity into advantage. Obstacles, both predictable and unforeseen, are not an impediment to growth or progress but rather the path to achieving our goals—it’s a matter of perspective.

EDC and a steering committee of the region’s largest employers determined that for our region to continue to grow and remain competitive, by 2030, San Diego will need:

  • 50,000 quality jobs in small businesses,
  • 20,000 skilled workers per year, and
  • 75,000 newly thriving households.

However, to do so, inclusion needs to be our focus. To achieve these goals, we must invest in and support the segments of our community that have been historically and systemically excluded from growth and prosperity—not simply because it’s the right thing to do,  but because it’s an economic imperative.

Small businesses employ 60 percent of San Diego’s workforce but struggle to compete for new customers and talent. On top of that, supply chain disruptions have impacted nearly every industry in our region. Connecting local small businesses to big, institutional buyers builds resiliency for both sides.

To keep pace with the demand for talent, we must double the production of skilled workers in our region. If San Diego’s Black and Hispanic youth were prepared for post-secondary education at the same rate as White youth, our talent shortage would become a talent surplus.

San Diego is now the most expensive major metro in the country. The rapidly rising cost of living is impacting employers’ ability to attract and retain talent. Investing in the infrastructure needed to support working families ensures that the region remains an attractive place for people to work and businesses to operate in.

That is the scale of our challenge. It is also the size of our opportunity.

Even the pandemic itself, a once-in-a-century global health crisis that has claimed the lives of nearly one million Americans, has paved a new way forward. It taught us that how and where we work can be different and better. It reaffirmed that small businesses are not just places of employment but also part of the fabric of our community. It reminded us that no matter how much technology we have at our fingertips, it is the human spirit that drives the life-changing and life-saving innovation in our region and world.

During last week’s Report to the Community, I shared that four years later progress toward these goals remains elusive. Yet, the more than 200 people in attendance reminded us that our collective commitment toward these goals will drive the region toward success.

San Diego’s future growth and competitiveness could be undermined by the inequities we currently face; or, the next wave of innovation and prosperity could be fueled by greater inclusion. It’s a matter of perspective. The obstacle is the way.

Take care, Eduardo

Eduardo Velasquez
Eduardo Velasquez

Sr. Director, Research & Economic Development

JOIN THE MOVEMENT

EXPLORE THE PROGRESS REPORT

READ EDC’S MONTHLY REPORT

Public, private leaders announce commitment to Inclusive Growth

County, City, academic, and private sector leaders announce commitment to inclusive economic growth

Today at its Report to the Community event, San Diego Regional EDC shared progress against the 2030 inclusive growth goals outlined pre-pandemic in 2018. With new data and bold objectives set around increasing the number of skilled talent, quality jobs, and thriving households critical to the region’s competitiveness, County and City of San Diego officials as well as leaders in the private sector, education, and philanthropy offered their shared commitments to economic inclusion.

“EDC’s recent analysis underscores the significant impact of the pandemic on San Diego’s under-resourced communities and small businesses,” said Julian Parra, Business Banking Region Executive at Bank of America and EDC Board Chair. “To drive meaningful economic change, a diverse set of stakeholders must step up or the issues facing our economy—talent shortages, skills gaps, and a soaring cost of living—will further challenge San Diego’s economic competitiveness.”

The innovation economy has made San Diego more prosperous than many of its peers—leading the region out of the COVID-spurred economic recession as it has in past downturns—but remains inaccessible to the fastest-growing segment of the region’s population. At no surprise, the goalposts EDC outlined four years ago are now farther from reach in the wake of the pandemic.

With nearly 200 members, EDC represents just a small fraction of the region’s employers. It is only with and through a broader group of stakeholders that more quality jobs, skilled talent, and thriving households in San Diego is possible. As such, EDC has enlisted the endorsement of key regional partners and employers that have committed to using the Inclusive Growth framework to inform their priorities, tactics, and resource allocation.

Hear some of those commitments:

 

“The County shares a deep commitment to the framework outlined by EDC. In order to help regionalize these Inclusive Growth goals, the County has created the Office of Economic Prosperity and Community Development that will prioritize significant investments in our communities as well as uplift our local businesses,” said Vice Chair Nora Vargas, San Diego County Board of Supervisors. “Our inclusive work is centered on achieving an equitable economic recovery that ensures prosperity for all San Diegans.”

“Employing more than 1,200 San Diegans, we understand the criticality of large employers fostering a robust talent pipeline who can afford to live and thrive here,” said Jennie Brooks, Senior Vice President at Booz Allen Hamilton and EDC Vice Chair. “We are committed to advancing these goals by mentoring the next generation of women leaders through partnerships with local organizations like Girl Scouts San Diego; creating opportunities through our Mil/Tech Workforce Initiative to help military veterans build on their experiences and upskill into quality tech careers; and providing the flexibility that employees need in today’s dynamic work-life environment.”

The pandemic’s impact to progress: Jobs, talent, households

In its new analysis, available at progress.inclusivesd.org, EDC quantifies the COVID-19 pandemic’s devastating impact on the regional economy and reports progress toward the 2030 goals. Takeaways include:

  1. QUALITY JOBS:
    While the region saw an overall increase in the number of quality jobs* since 2017, the disparity between quality jobs in small and large firms grew. The jobs losses of 2020 were principally concentrated in lower paying jobs at small businesses, especially those held by people of color. Meanwhile, larger firms added quality jobs in haste. In order to compete on talent, small businesses need new, reliable customers. San Diego’s large buyers can support quality job growth and ensure supply chain resilience by spending more with small, local businesses.
  1. SKILLED TALENT:
    Since 2016, all job growth has been in positions that require some form of degree or credential acquired through post-secondary education (PSE). Looking forward, it is projected that 84 percent of new jobs created between now and 2030 will also require PSE. Hispanics represent one-third of San Diego’s total population but only 15 percent of degree holders. Further, nearly half of middle school students are Hispanic but are statistically the least prepared for the jobs of the future. To address employers’ hiring challenges long-term, the region must invest in college readiness for more San Diego students.
  1. THRIVING HOUSEHOLDS:
    Rapidly rising home prices—up more than 30 percent in the last two years alone—coupled with jobs losses have resulted in almost 11,000 fewer thriving households** in 2020 than in 2017. Further, the region lost 3,200 licensed childcare facilities due to business closures amid the pandemic. Rising costs and access to childcare, transportation, and broadband—disproportionately felt by people of color—will leave businesses unable to retain or recruit talent from outside of the region.

While the innovation cluster has more than rebounded from the pandemic, the talent challenges employers face will only worsen and threaten their growth across San Diego. A concerted commitment to Inclusive Growth must be made; the region’s competitiveness depends on it.

The initiative is sponsored by Bank of America, HomeFed Corporation, San Diego Gas & Electric, Southwest Airlines, The San Diego Foundation, University of San Diego School of Business, City of San Diego, and County of San Diego.

Read the full report at progress.inclusiveSD.org.

join the movement

*Quality job = $44K wages + healthcare benefits.

**Thriving household = total income covers cost of living for renter- or owner-occupied households, at $796K and $122K respectively.

San Diego’s Data Bites: March 2022

Presented by Meyers Nave, this edition of San Diego’s Data Bites covers January and February 2022, as well as an additional update on annual benchmark revisions, with data on employment and more insights about the region’s economy at this moment in time. Check out EDC’s Research Bureau for even more data and stats about San Diego.

KEY TAKEAWAYS

  1. San Diego’s unemployment rate dropped by 0.7 percentage points–from a revised 4.7 percent in January to 4 percent in February–with nonfarm employment increasing by 16,500 payroll positions.
  1. Employers in the region added more than 104,000 payroll positions since February 2021–with Service Providing industries accounting for 102,600 of the added jobs–lowering the unemployment rate by 3.7 percentage points.
  1. Annual benchmark revisions to employment data show that the region’s economy was recovering more rapidly than initially believed. Specifically, revisions to nonfarm employment for December 2021 improved the jobs count by more than 40,000 workers.

Service Providing industries lead month-ago and year-ago changes

February’s jobs report painted a positive picture for the San Diego regional economy. With respect to changes from January to February, nonfarm employment increased by 16,500, driving the unemployment rate lower to 4 percent from a revised 4.7 percent in January. Service Providing industries led the pack in employment gains, as Professional and Business Services added 6,100 jobs, Educational and Health Services added 4,800 jobs, and Leisure and Hospitality added 4,200 jobs. Trade, Transportation, and Utilities dropped 2,700 jobs, however, with employers in Retail Trade shedding 2,300 payroll positions. Manufacturing industries also had a down month, with losses of 1,000 jobs in Durable Goods production.

Service Providing industries were also the leaders in year-ago employment gains from February 2021, adding more than 104,000 jobs to the region. The slow and steady employment gains over the last year have resulted in the unemployment rate dropping by almost four percentage points from a revised 7.9 percent in February 2021 to 4 percent in February 2022. Within the Service Providing sector, Leisure and Hospitality added 52,700 positions, which is a good sign of recovery as these companies were the hardest hit during the pandemic. Employers in Professional and Business services also added 21,100 payroll positions, 9,300 of which were in Professional, Scientific, and Technical Services. These gains were not felt across all industries, however, as Durable Goods manufacturing lost 1,900 jobs from February 2021.

February employment inches closer to pre-pandemic levels

Looking at changes from February 2020 to February 2022 shows that the region is getting ever closer to pre-pandemic levels, a good sign for the recovery of San Diego’s economy. Total nonfarm employment is only about 25,000 (1.64 percent) lower than before the pandemic. Over half of these missing jobs are in Leisure and Hospitality, as the industry shows 14,000 fewer jobs in February 2022 than the same month in 2020, a gap of around 7 percent. Durable goods manufacturing is also exhibiting signs of a slower recovery with 6,200 fewer payroll positions than before the pandemic, or about 7 percent lower.

Despite some industries still playing catch-up, many have surpassed pre-pandemic employment levels. Professional and Business Services employers have added 19,300 payroll positions since February 2020, an increase of 7.4 percent. Notably, Administrative and Support and Waste Services have added 11,000 jobs (up 12.4 percent) while Professional, Scientific, and Technical Services have increased employment by 8,900 (up 6.05 percent). Speaking to San Diego’s position as a leader in Innovation and Life Sciences, companies in Scientific Research and Development Services have added 7,300 jobs since the start of the pandemic, an increase of more than 20 percent. With a hiring frenzy in innovation-related industries in full force, it is imperative for our region’s competitiveness that we continue to bolster the supply of the skilled labor that San Diego companies demand.

This means building a strong local talent pipeline of home-grown talent. It also means addressing the region’s affordability crisis so that it remains attractive to both businesses and workers. More at inclusiveSD.org.

Annual revisions show employment was greater during 2021 than first believed

Every March, the California Employment Development Division works with the Bureau of Labor Statistics to revise employment data, a process called benchmarking. Depending on the year and the difficulties in gathering accurate employment data, these revisions might be significant. For reasons that should be unsurprising by now, 2021 was one such year.

What is striking about these revisions is the increasing underestimation of employment throughout 2021. Although January’s revised employment count was only about 500 greater than original estimates, the number had grown to 40,600 by December 2021. Put another way, original estimates were about 3 percent lower than the revised numbers. While this may seem like a trivial distinction, it does indicate that San Diego’s economic recovery was even stronger than originally believed. In fact, the industries that were most impacted by the pandemic reported some of largest upward revisions.

Leisure and Hospitality had 14,600 more jobs in December 2021 with the revised numbers (an upward revision of 8.7 percent), being driven by 8,500 jobs in Accommodation and Food Services (an upward revision of 5.8 percent). Revisions increased the employment count in Professional and Business Services by 12,100 (an upward revision of 4.5 percent), largely attributable to changes in Administrative and Support Services (an upward revision of 7,400, or 8.7 percent). All industries did not show an increase due to the annual revisions, however. Employment in Construction was lowered by 2,900 jobs (a downward revision of 3.4 percent) while the jobs count in Retail Trade was decreased by 2,100 jobs (a downward revision of 1.4 percent).

Interested in more? You may also like to read:

A note from our COO

Together at last. 

EDC’s team, investors, and partners do our best work when we are together; this reflects our values of collaboration and inclusion and is core to our mission. But it’s been a minute…

While we safely begin to gather again, we recognize many things are different. Whether you have trepidation about returning to in-person gatherings or are eager to get from behind the Zoom screen, EDC will meet you where you’re at—offering opportunities for both interactions in the months and year ahead. Hearing from and being with our investors and partners in either setting is essential.

Last week, we hosted a two-day retreat with 40 leaders from industry, academia, nonprofits, and government to share complex data unpacking the pandemic’s impact on the 2030 Inclusive Growth goals. The common thread: inclusion is an economic imperative and thus, requires shifts in our regional priorities.

And this week for the first time in two years, EDC’s Chairman Julian Parra led an in-person board meeting with 60+ leaders across the region. Julian took the gavel in June 2020 and never imagined his term would largely be served virtually; however, he has continued to drive the inclusive economic development strategy with the same fervor as instilled by past EDC Chair Jim Zortman in 2017.

For the region to fully emerge from this global pandemic, it must reconcile an economic recovery that is full of contradictions. The region is simultaneously experiencing strong job growth and record venture capital inflows, along with a fierce battle of seemingly unavailable talent, small business closures, and the most expensive housing market in the U.S., with the brunt of these impacts incurred most by low-income earners and people of color. To get this recovery right, the San Diego region must double down on the goals for quality jobs, skilled talent, and thriving households.

That’s why we hope you will join us on April 8 at EDC’s Report to the Community, where we will unveil data on the region’s progress towards these goals and hear commitments from regional leaders.

Here are other opportunities for engagement with us in the months ahead:

  • This Friday, March 11, at our quarterly Economic Development Committee meeting, hear how San Diego companies are re-evaluating talent attraction techniques to see success in a new world of hiring challenges. Register now with password EcoDev2022.
  • On March 23, join the virtual Global Competitiveness Council meeting to hear an update from Congresswoman Sara Jacobs (CA-53) on the devastating conflict in Ukraine, followed by an update on the state of global aviation from the San Diego County Regional Airport Authority.
  • In May, EDC will host another investor reception—stay tuned for the date and location. If you missed any of our recent gatherings, we hope you are able join us.
  • On June 9, EDC celebrates the return of its Annual Dinner—this year at Petco Park. Together with 900+ friends and colleagues, join us for a special night honoring the region’s healthcare providers for their unwavering care and The San Diego Foundation for its essential community investments throughout the pandemic. If you would like to sponsor, please contact Jennifer Storm.

For two decades I have had the pleasure of being a part of the team at EDC. Never have I been more certain of our value proposition than right now. To our investors, my sincere gratitude for your support—especially these past two years. There is critical and challenging economic development work ahead, but with and through all of you, we can ensure our regional competitiveness and create better futures for more San Diegans. As our past EDC Chair Janice Brown reminded us, when Lin-Manuel Miranda wrote the score for Hamilton, the lyric wasn’t “on the Zoom, it was “in the room where it happens.” Somewhere on the journey ahead, I look forward to being in the room alongside you.

With regards,

Lauree

Lauree Sahba
Lauree Sahba

Chief Operating Officer

READ EDC’S MONTHLY REPORT

A note on talent from Bree

It’s not you—it’s all of us. 

The long talked about ‘war for talent’ is more competitive than ever, with established firms upending whole hiring systems to meet the demands of today’s applicants—and still, not getting enough. You are not alone; this is not a one-company problem. In our countless conversations with HR leaders and executives, it’s clear firms across industries and size are struggling to fill their open positions (EDC included).

In a survey of 200 local businesses, hiring difficulty reached a new high in December. That same month, local San Diego employers posted more than 158,000 unique jobs—nearly half of which were new positions and predominantly in STEM. And yet, there are just 61,000 people currently unemployed in the region.

Flexibility. Remote work. Mission. Culture. Inclusion. The pandemic flipped the script on workforce demands with companies across the country being stretched to meet the needs of prospective recruits. Established firms can’t compete with the benefits offered by startups from salary to signing bonus to equity. Startups can’t offer the structure or safety net available at large corporations. Yet San Diego is uniquely positioned to compete.

The region stands apart with its thousands of mission-driven companies, its unparalleled quality of life, and its collaborative ecosystem. These are the stories we tell in San Diego: Life. Changing., and the connections we drive through Advancing San Diego.

EDC can help:

  • Lean into the San Diego story in selling your business to recruits using these tools;
  • Engage with us to mold student curriculum to meet your industry needs;
  • Apply for interns paid for by EDC’s foundation;
  • And share your open roles for promotion across our channels.

And above all, turn inward to upskill and promote your existing workforce and consider rethinking existing job requirements which may be inadvertently excluding qualified San Diegans. Pandemic-induced challenges aren’t going away soon, and the battle for talent may endure, but with San Diego as your homebase, we’ve got you covered.

All my best—Bree

Bree Burris
Bree Burris

Director, Marketing & Communications

READ EDC’S MONTHLY REPORT

Meet our Advancing San Diego Preferred Providers of Life Sciences Talent

Source your science talent from these edu programs…

Fueled by industries like Tech, Defense, and Life Sciences, San Diego’s innovation economy relies on a pipeline of diverse talent. However, local companies continue to cite access to quality talent as a persistent and growing challenge. Ninety-eight percent of firms in San Diego are small companies (<100 employees) that often lack time and resources to effectively compete for talent with their larger counterparts. Meanwhile, many San Diegans are disconnected from high-demand job opportunities, largely due to education requirements.

Made possible by JPMorgan Chase, Advancing San Diego is a demand-driven strategy to address talent shortages and remove barriers for small companies to access qualified workers. It is a collaborative effort between EDC, San Diego and Imperial Counties Community College Association, San Diego Workforce Partnership, City of San Diego, and United Way of San Diego.

Over the last six months, Advancing San Diego partners worked with a group of 22 employers to develop skills-based criteria for Lab Technicians (aka Research Assistants). We asked that any education provider meeting that criteria apply for the Preferred Provider designation. An employer-led review panel then evaluated these applicants against the skills criteria to determine which programs should be designated as ‘Preferred Providers,’ recognized as those most effectively preparing individuals for jobs and internships as Lab Technicians.

EDC is eager to announce Preferred Providers of Life Sciences Talent:

Need science talent?

Advancing San Diego will select up to 20 high-growth Life Sciences companies in the region to host paid Lab Technician/Research Assistant interns, sourced from the above Preferred Provider programs, at no cost to the business. Selected companies will be asked to host two interns for 240 hours each during the Summer 2022. Interns will be paid through Advancing San Diego, and have access to additional funds to support their success in the workplace. Apply here—applications close February 14.

Sign up to receive updates on Advancing San Diego

For more information, visit AdvancingSD.org.

Other posts you might like:

San Diego’s Changing Business Landscape: Increasing optimism after a year of struggle

Welcome to the final edition in EDC’s Changing Business Landscape Series, which is published bi-monthly in the San Diego Business Journal and here on our blog. If you missed them, check out all past editions here.

Surveying the changing business landscape in San Diego

The COVID-19 pandemic has impacted every facet of life, including how businesses operate. Companies in every industry are rapidly re-evaluating how they do business, changing the way they interact with customers, manage supply chains and where their employees are physically located. This has massive immediate and long-term implications for San Diego’s workforce and job composition, as well as regional land use decisions and infrastructure investment.

To identify evolving trends in local business needs and operations, ensuring their ability to grow and thrive in the region, San Diego Regional EDC surveyed nearly 200 companies in the region’s key industries on a rolling basis throughout 2021 to monitor and report shifts in their priorities and strategies. In addition, EDC constructed the San Diego Business Recovery Index (BRI)—a sentiment index to measure companies’ perceptions of current conditions, as well as expectations for the future across several factors such as business development, employment and commercial real estate needs. (An index value >50 reflects expansion, and a value <50 reflects contraction. More information on the index and how it is calculated is available at sandiegobusiness.org/research.)

These insights will help inform long-term economic development priorities around talent recruitment and retention, quality job creation, and infrastructure development. Companies are surveyed on several topics, with varying emphases in each wave.

Here are three key findings from the final wave of surveying conducted in December 2021:

    1. Companies have settled into their pandemic modes of operation. Revenues and employment have stabilized, driving positive sentiment of San Diego’s current business environment.
    1. Pandemic-driven challenges aren’t going away soon. Businesses report greater struggles with hiring, retention, and supply chain disruptions than at any other point in 2021.
    1. Businesses enter 2022 with a renewed level of optimism. The challenge will be in meeting industry’s growth with infrastructure investment needed to sustain it.

San Diego businesses reported mainly positive views on both the current conditions and expectations for region’s economy during the next six to 12 months. Although there was significant variation in these sentiments depending on the size of establishment, the overall results of December’s Changing Business Landscape survey were positive. The BRI climbed 9.4 points from 54.1 in October to 63.5 in December, reflecting more positive views of current economic conditions as well as much more bullish view of the future.

Companies have settled into their pandemic modes of operation

Across firm size and industry, business perceptions are that San Diego’s economic engines have adapted better than peer metros in the United States during the pandemic. As new coronavirus variants continue to surface, this adaptability is paramount to the continued success of the region’s businesses, both large and small. Furthermore, businesses rated San Diego’s economic health higher in December than at any other point in the year.

The biggest driver behind the rosy views of current business conditions surrounds employment, with San Diego businesses indicating that they have significantly increased their workforce since the start of the pandemic. This is principally driven by innovation industries, such as Life Sciences and Manufacturing. Life Sciences companies, in particular, are growing rapidly, raising $5 billion in venture capital funding in 2021 alone.

Along with growing payrolls, San Diego businesses are also reporting a rebound in both revenues and earnings. However, the magnitude of the rebound varies by business size. Businesses with fewer than 50 employees reported milder up swings (BRI values in the low-50s) compared to businesses with more than 250 employees (BRI values in the mid-70s). Here again, Life Sciences and Manufacturing led the way. However, some surprising results came from Software companies which reported declines in both revenues and earnings back in October. This could also be attributable to a surge in venture funding during the fourth quarter of 2021.

Finally, business leaders appear to have adapted to the constant disruption from new coronavirus variants and we enter the third year of a pandemic. More are reporting additional changes to their human resource policies and related procedures to operate effectively, and satisfaction with remote work arrangements remains high.

Pandemic-driven challenges aren’t going away soon

The employment gains reported by companies have not come easily. Employers indicated that hiring difficulty has reached a new low with December’s BRI at a dismal 8.4, a massive drop from October’s already low level of 28.4. Not only are the region’s businesses spinning their wheels over ever-increasing difficulty hiring, but a new record rate of workers quitting across the U.S. has made the war for talent a two-front war. San Diego entered 2021 with more than 122,000 people unemployed. Over the course of the year that number has fallen by half and while there is technically surplus of workers in the region, demand for workers is even greater. In fact, during the month of December employers posted more than 158,000 unique jobs—nearly half of which are new positions. Nearly every industry is in need of more workers and the demand is translating into higher advertised salaries.

In addition to their troubles recruiting and retaining talent, San Diego businesses reported a sharp decline in their ability to manage suppliers and vendors as the global supply chain knot continues to disrupt normal business operations. These issues appear to be worse for larger companies, as they often require intermediate inputs from international vendors in larger quantities than smaller businesses, making it more difficult to find new suppliers when there is a delay in production or shipping. Despite these disruptions, San Diego’s transportation cluster continues to grow. This is important because it supports more than 90,000 local jobs while propelling San Diego’s global competitiveness.

Businesses enter 2022 with a renewed level of optimism

Businesses reported strong future expectations across every single forward-looking BRI segment in December. Notably, San Diego companies with more than 250 employees once again expect to lease or purchase additional commercial space in the next six to 12 months after expressing desires to reduce their collective footprint in October. Here again, medical device manufacturers, and manufacturers more broadly, are driving the trend. Additionally, expectations for future remote work were strongest in December by a large margin. Companies of all sizes and industry have embraced remote work, to some degree, as a part of how they operate going forward.

While the impacts of omicron are not necessarily captured during the last wave of surveying, businesses nonetheless feel that San Diego has fared well in adapting to changing regulations and continuous staffing and supply chain uncertainties. If this is, in fact, the next normal, San Diego’s economic engines are well positioned to drive that growth.

While businesses surveyed leave 2021 with a renewed sense of optimism, 2022 will bring more questions than answers. Will remote work and a continually rising cost of living begin to drive talent away? Will the ‘great resignation’ translate into surge of new startups? Will record venture capital prove to be circumstantial or drive a new Life Sciences boom? Will the billions of dollars of public funding from the state align to support growth? EDC will be monitoring these trends and how companies continue to adapt in the face of an ever-changing business landscape.

For San Diego to fully emerge from this global pandemic, it must reconcile an economic recovery that is full of contradictions. The region is simultaneously experiencing strong job growth and eye-watering venture capital investment, along with widespread labor shortages, small business closures, and a housing market that is nearly 30 percent more expensive. Moreover, these impacts were not felt evenly across the region. The brunt of the adverse health and economic impacts of the pandemic were incurred by low-income earners and people of color.

The past year was one of adaptation and endurance, but also a year that reinforced the need to focus on the fundamental building blocks of a strong economy—quality jobs, skilled talent, and thriving households. The next year will be one where resilience means connecting more people to innovation industries; competitiveness means more San Diegans have the skills the economy needs; and prosperity means that working families can afford to live here. More than ever, smart economic development means inclusive economic development.

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