San Diego’s Economic Pulse: February 2020

Each month the California Employment Development Department (EDD) releases employment data for the prior month. Each year, the Labor Market Information Division (LMID), in cooperation with the federal Bureau of Labor Statistics (BLS), revises historical industry employment, labor force, and hours and earnings estimates. The revision process, also called “benchmarking,” produces updates to the data sets used to generate the monthly estimates.

This edition of San Diego’s Economic Pulse covers 2019 benchmarking updates and data from January 2020. Check out EDC’s research bureau for more data and stats about San Diego’s economy.

Highlights include:

  • The region’s unemployment rate was 3.3 percent in January 2020, up from a revised 2.8 percent in December 2019, and below the year-ago estimate of 3.8 percent
  • The region’s unemployment rate remains lower than both the state and national unemployment rates of 4.3 percent and 4.0 percent, respectively
  • Between December 2019 and January 2020, total nonfarm employment decreased from 1,525,200 to 1,501,700, losing 23,500 jobs
  • Between January 2019 and January 2020, total nonfarm employment increased from 1,482,000 to 1,501,700, adding 19,700 jobs
  • Professional and business services led the year-over-year gain, adding 8,600 jobs
  • Benchmark revisions show that the region experienced slower employment growth in 2019, ending the year with 15,500 fewer jobs than originally estimated

San Diego’s Quarterly Economic Snapshot – Q4 2019

Summary

Every quarter, San Diego Regional EDC analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S. This issue covers data from Q4 2019.

As 2019 wraps up and the region continues to struggle with housing affordability, the number of annual building permits continues to decrease. In 2019, there were 8,082 building permits issued, with 3,023 single family permits and 5,059 multi-family permits. Annual building permits saw a 17.4 percent decrease from 2018 to 2019. Building permits have decreased annually since 2016.

Key findings from the snapshot:

  • San Diego’s unemployment rate continues to drop, at 2.8 percent in Q4
  • Total annual nonfarm employment increased by 34,800 jobs, or 2.3 percent from Q4 2018 to Q4 2019, led by 9,500 new jobs in the Professional and Business Services industry
  • The Trade, Transportation, and Utilities recorded the largest quarterly gain, adding 10,800 jobs, or 4.9 percent compared to Q3 2019
  • San Diego’s housing market was the second most expensive in the nation with the median home price at $655,000 in Q4, up annually by 4.6 percent
  • While annual building permits issued for 2019 were lower than 2018, Q4 2019 housing permits were greater than Q4 2018
  • San Diego saw 39 Venture Capital deals worth $655 million, primarily concentrated in the healthcare sector

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San Diego’s Economic Pulse: January 2020

Each month the California Employment Development Department (EDD) releases employment data for the prior month. This edition of San Diego’s Economic Pulse covers December 2019. Check out EDC’s research bureau for more data and stats about San Diego’s economy.

Highlights include:

  • The region’s unemployment rate was 2.8 percent in December 2019, down from a revised 2.9 percent in November 2019, and below the year-ago estimate of 3.1 percent
  • The region’s unemployment rate remains lower than both the state and national unemployment rates of 3.7 percent and 3.4 percent, respectively
  • Between November 2019 and December 2019, total nonfarm employment increased from 1,538,200 to 1,540,700, adding 2,500 jobs
  • Between December 2018 and December 2019, total nonfarm employment increased from 1,505,900 to 1,540,700, adding 34,800 jobs
  • Between December 2018 and December 2019, professional and business services led the year-over gain, adding 9,500 jobs and mostly driven by growth in professional, scientific, and technical services (up 7,500)

San Diego’s Economic Pulse: December 2019

Each month the California Employment Development Department (EDD) releases employment data for the prior month. This edition of San Diego’s Economic Pulse covers November 2019. Check out EDC’s research bureau for more data and stats about San Diego’s economy.

This report is sponsored by Manpower San Diego.

Highlights include:

  • The region’s unemployment rate was 2.9 percent in November, unchanged from a revised 2.9 percent in October 2019, and below the year-ago estimate of 3.1 percent
  • The region’s unemployment rate remains lower than both the state and national unemployment rates of 3.7 percent and 3.3 percent, respectively
  • Between October 2019 and November 2019, total nonfarm employment increased from 1,536,900 to 1,546,800, adding 9,900 jobs
  • Between November 2018 and November 2019, total nonfarm employment increased from 1,512,500 to 1,546,800, adding 34,300 jobs
  • Between November 2018 and November 2019, government led the year-over gain, adding 7,800 jobs and mostly driven by growth in local government (up 5,200)

San Diego’s Quarterly Economic Snapshot – Q3 2019

Economic Snapshot header_11-2019

Summary

Every quarter San Diego Regional EDC analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S. This issue covers data from Q3 2019.

Over half of the 24 most populous metros experience a decline in total nonfarm employment during Q3 from Q2, including San Diego. The region saw a decline of 2,200 jobs – a 0.1 percent decrease in total nonfarm employment from Q2 to Q3, primarily due to seasonal changes. On the other hand, compared to a year ago, nonfarm employment was up 30,600, or 2.1 percent.

Key findings from the snapshot:

  • San Diego’s unemployment continues to drop, at 2.7 percent in Q3
  • While there was a decrease in nonfarm employment from Q2 to Q3 2019 due to seasonal changes, annual nonfarm employment was up 30,600 jobs, or 2.1 percent compared to Q3 2018
  • San Diego’s housing market was the third most expensive in the nation, despite home prices decreasing in Q3 both quarterly and annually
  • Housing permits increased substantially year-over-year in San Diego, largely due to multi-family housing permits increasing by nearly 133 percent
  • Overall, total housing permits increased nearly 68 percent compared to a year ago
  • San Diego saw 34 VC deals worth $707 million

Median Sales

Quarterly Economic Snapshot analyzes key economic indicators that are important to understanding the regional economy and the region’s standing relative to the 25 most populous metropolitan areas in the U.S. This releases includes data from July to September (Q3) 2019.

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San Diego’s Economic Pulse: November 2019

Each month the California Employment Development Department (EDD) releases employment data for the prior month. This edition of San Diego’s Economic Pulse covers October 2019. Check out EDC’s research bureau for more data and stats about San Diego’s economy.

This report is sponsored by Manpower San Diego.

San Diego Economic Pulse – November 2019 from San Diego Regional EDC on Vimeo.

Highlights include:

  • The region’s unemployment rate was 2.8 percent in October, up from a revised 2.7 percent in September 2019, and below the year-ago estimate of 3.2 percent
  • The region’s unemployment rate remains lower than both the state and national unemployment rates of 3.7 percent and 3.3 percent, respectively
  • Between September 2019 and October 2019, total nonfarm employment increased from 1,516,200 to 1,525,000, adding 9,400 jobs
  • Between October 2018 and October 2019, total nonfarm employment increased from 1,495,400 to 1,525,600, adding 30,200 jobs
  • Between October 2018 and October 2019, government led the year-over gain, adding 8,200 jobs and mostly driven by growth in local government (up 5,100)

EDC research team composes Promise Zone Equitable Plan

SD Promise Zone

From December 2018 and January 2019, the San Diego Small Business Lending Collaborative surveyed 129 existing and 101 prospective business owners in three San Diego Promise Zone zip codes (92102, 92113 and 92114). The purpose of the survey was to identify barriers for small business establishment and growth within the San Diego Promise Zone, a geographic area comprising of Barrio Logan, Southeastern San Diego, and Encanto. Historically disadvantaged, the culturally rich communities within the San Diego Promise Zone possess unique barriers that inhibit economic growth.

The study, written by the San Diego Regional EDC, found that the biggest challenge business owners face is related to credit/financing. Only 12 percent of business owners have ever applied for business financing, and out of those who have, they found only expensive options or were declined due to bad credit or income requirements. The final report outlines recommendations and strategies for small business owners in the San Diego Promise Zone to overcome these obstacles and grow their companies. For example, expanding access to entrepreneurship training and accelerator programs for low to moderate income populations.

**Read the full report here.**

Study: Addressing San Diego’s Affordability Crisis

Summary

In an effort to address San Diego’s soaring cost of living, San Diego Regional EDC and its Inclusive Growth Steering Committee of 40 employers officially endorsed a regional goal to create 75,000 newly thriving households by 2030. Driven by the findings in EDC’s latest study release, this regional goal and accompanying set of recommendations aim to address key factors (housing, transportation and childcare) impacting San Diego’s affordability crisis – the last of three main goals of a regional Inclusive Growth agenda.

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Study: Qualcomm’s Contribution to San Diego’s Economy

Summary

San Diego Regional Economic Development Corporation released a study—Qualcomm’s Contribution to San Diego’s Economy, showcasing how the company’s investment in the community has impacted the industry, economy and region as a whole. Since its humble beginning in 1985, Qualcomm has been at the forefront of innovation, entrepreneurship and research and development (R&D.) It settled with a home base in San Diego, providing a significant economic impact and tremendous contributions to our region since its founding.

Qualcomm is not only a technology industry leader in our region; it also engages the marketing, accounting, legal services, consulting, environmental and engineering industries in San Diego, in-turn creating jobs and opportunities along every step of the company’s tech journey. Just in 2018, Qualcomm had an economic impact of approximately $4 billion in the San Diego economy. To put that into perspective, it’s the equivalent of 41 Breeder’s Cup World Championships, 27 San Diego Comic-Cons and 3.6 San Diego Convention Centers. This research was sponsored by Qualcomm, who provided employee data for EDC’s impact analysis.

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Cybersecurity in the San Diego region

Summary

San Diego has emerged as a leader for the development of cybersecurity technology and the delivery of cyber-related services. The region’s healthy ecosystem, including its strong military presence, world-class academic institutions, incubators and strong partnerships between industry associations and governments, has positioned San Diego as a hub for cyber operations. Today, there are more than 150 firms in the San Diego region focused exclusively on cyber. With incidences of cyber attacks on the rise worldwide, the industry’s innovative companies are equipped to meet the global market’s increasing demands for new products and technologies. This study was produced in collaboration with the Cyber Center of Excellence.

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