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Economic Drivers

August 15, 2014

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This post is part of an ongoing monthly series dedicated to the California Employment Development Department (EDD) monthly employment release and is brought to you by Manpower. Click images to enlarge in a new tab/window.

[Unemployment Chart]

HIGHLIGHTS

  • July is a historically misleading month, as state and local public education employees are subject to seasonal layoffs.
  • At 6.6 percent, San Diego’s unemployment rate went up again in July, this time by 0.5 percentage points from June. However, unemployment was down 1.4 points from July 2013.
  • San Diego’s unemployment rate was lower than the California average, but climbed slightly above the U.S. average.
  • The region lost 5,900 jobs from June to July, but added 37,200 jobs from the previous year, the highest year over year job growth recorded in 2014.
  • Construction industry employment in July was up more than 11.3 percent from the previous year.
  • The manufacturing industry added 2,200 jobs since the previous July.
  • Staffing services grew by more than 3.3 percent since last year, more than any other professional or business service subsector.
  • Tourism, innovation, construction and healthcare sectors continued to drive much of the monthly and annual employment growth.

[Unemployment Chart]

The California Employment Development Department (EDD) released statewide county employment data today for the July 2014 period. San Diego County's unemployment rate went up from June to July, but fell by 1.4 points from this time last year. The unemployment rate in the region remained lower than California's average, but is now barely higher than the U.S. average (0.1 points higher). As stated in last month's report, a summer rise in the unemployment rate is common, as many students and other seasonal workers begin looking for summer employment, but struggle to find employment, driving up the labor force. The labor force increased by 14,800 from June to July, more than one-third of which found employment. The other two-thirds entered the unemployed category during a season when thousands of state and local educators, among other seasonal employees, are temporarily out of work. While there's no certainty in the future, history tells us to expect the unemployment rate to decline steadily from here on out through the end of the year.

[Employment Chart]

When looking at employment growth, we continue to see positive signs of steady growth, despite a misleading seasonal decline. From June to July, the region lost 5,900 jobs. On the surface, this seems negative until you consider that state and local public education contributed 12,800 lost jobs to the region as a result of seasonal layoffs. The private sector actually added 6,800 jobs, a sign of continued economic growth. When looking at overall growth since last July, the region’s economy added 37,200 jobs, a 2.8 percent increase and the largest annual growth recorded in 2014. Meanwhile, the region’s private sector grew by more than 3.1 percent over that period. Over the same period, San Diego experienced a 1.4 percentage point drop in the unemployment rate and a 17 percent drop in people who identified as unemployed, even with a slight increase in labor force participation.

[PST Chart]

San Diego’s traded economies drove much of the region’s employment growth. Professional, scientific and technical services (PST), heavily associated with innovation, added 2,200 jobs since June 2014 and 6,700 jobs since July 2013, for an annual growth rate of 5.4 percent, well above the economy-wide average. PST includes subsectors like scientific research and development, which grew by more than three percent over the year. PST accounted for nearly one-third of the private employment growth from June to July. San Diego’s tourism industry accounted for more than 39 percent of the region’s private employment growth from June to July, adding 2,700 jobs. In addition, the industry added 6,000 jobs since July 2013. Most of the growth is driven by food service businesses, but arts and recreation businesses also grew by six percent since last year. Health care and social services was another major contributor, adding 6,000 jobs since last July.

San Diego’s goods producing industries continued their steady employment growth. Manufacturing added another 200 employees from June to July, for a total of 2,200 jobs added since July 2013. Meanwhile, the construction industry continues to soar, and not just because of summer seasonal growth. The industry added 1,500 jobs from June to July and 7,000 jobs since July 2013, both of which represent more than 20 percent of private employment growth over those periods. 

[MFG Chart]

When going beyond the basic headlines of job loss and unemployment growth, the July employment report was actually full of good signs for San Diego’s economy. Our private sector economy continued to grow at a steady pace of more than three percent year-over-year. Goods-producing industries like construction and manufacturing continued to add jobs, and our innovation sectors grew well above the normal economic pace. While higher unemployment and overall job loss is concerning, it is very clear that these are simply seasonal trends related mostly to annual public education layoffs.

Note: Our Economic Indicators Dashboard will show how our unemployment rate compares to other US metros and the US total rate when that information is released in the coming weeks.

August 14, 2014

Pharma MFG info

Selected by the US Secretary of Commerce as one of the 12 advanced manufacturing communities in the country, San Diego is on the forefront of helping to strengthen American manufacturing. Manufacturing supports more than 90,000 jobs throughout San Diego County. National Manufacturing Day on October 3 provides San Diego and Northern Baja manufacturers an opportunity to highlight to the local community and the country, the diverse products that are manufactured in our region.

So why should San Diego County care about manufacturing? Here are a few reasons:

  • San Diego County’s 2,909 manufacturers employ 94,445.
  • Manufacturing industry jobs pay on average $75,824 annually, compared to the average private employer at $53,778.
  • Manufacturing industry jobs pay about 41 percent more than the average private job.
  • The manufacturing industry represents about 8.7 percent of all jobs in San Diego and about 12.2 percent of all wages/pay.
  • The manufacturing industry contributes more than $7.1 billion in wages every year.

On Oct. 3, many San Diego and Northern Baja companies will open their doors to the public as part MFG Day, a national program that addresses common misperceptions about the manufacturing industry.  If you know a manufacturer in our region, encourage them to participate! Participants currently confirmed to host tours include: 3D Robotics, D&K Engineering and more. MFgday.com has the complete list.

Med-Device-mFGs

The tours will be preceded by a breakfast panel and discussion with leaders in the manufacturing industry at San Diego Central Public Library including California Manufacturers and Technology Association, 3D Robotics, CareFusion, General Dynamics NASSCO, Sector 9, and ViaSat. To register to attend, visit https://sandiegomfgday2014.eventbrite.com.

We hope to see you at Manufacturing Day, but if we don’t catch you there, you can still follow the conversation on twitter using the hashtag #MadeinSD. 

Manufacturing day is presented by San Diego City College CACT Program with additional sponsorship provided by D&K Engineering, Chase, Manpower, National University

Thank you to our media partner, San Diego Business Journal. 

#MadeinSD

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July 24, 2014

Comic Con

Via Nerdist 

North America’s largest pop culture convention kicks off in San Diego today.  For more than 40 years, people from around the globe have flocked to San Diego for Comic- Con. What does this mean for the region? We pulled some numbers together to find out:

  • The projected economic impact to the region is $177.8 million 
  •  In 1970, 300 people attended the first Comic-Con. Today, a crowd of more than 130,000 attend the four-day event
  •  Comic-Con means approximately 60,960 hotel room nights have been booked in San Diego 
  •  The estimated cumulative attendance since 1970 is 1,840,000 people
  • If all of Comic-Con attendees in the show’s history linked arms, the line would reach 1,855 mi, which would stretch from the San Diego Convention Center past Chicago (via Nerdist)
  • Plans for an Expanded Convention Center are underway, which will add 740,000 square feet and is expected to yield 7,000 new permanent jobs and $13.5 million in additional tax revenue to the city’s general fund. When complete, San Diego will boast the largest contiguous exhibit space on the West Coast, enticing conventions like Comic-Con to continue calling San Diego home

July 18, 2014

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This post is part of an ongoing monthly series dedicated to the California Employment Development Department (EDD) monthly employment release and is brought to you by Manpower. Click images to enlarge in a new tab/window.

[Quote]

HIGHLIGHTS

  • At 6.1 percent, San Diego’s June unemployment rate went up 0.3 percentage points from May, but down 1.7 points from June 2013.
  • San Diego’s unemployment rate was lower than the U.S. and California averages.
  • The region added 9,700 jobs from May to June, and 34,600 jobs from the previous year.
  • Construction industry employment in June was up more than 8.4 percent from the previous year.
  • The manufacturing industry added 2,400 jobs since the previous June.
  • Tourism and Innovation sectors continued to drive much of the monthly and annual employment growth.

[Unemployment Chart]

The California Employment Development Department (EDD) released statewide county employment data today for the June 2014 period. San Diego’s unemployment rate went up from May to June, but remained lower than California and U.S. averages. Historically, a rise in the unemployment rate is common in June, as many students and other seasonal workers begin looking for summer employment, thus driving up the labor force. The labor force increased by 3,200 from May to June. Meanwhile, total unemployment increased by 3,900, presumably comprised mostly of those entering the labor force. This trend is expected to continue throughout the summer, but is typical both historically and across the country.

[Employment Chart]

When looking at employment growth, we continue to see positive signs of steady growth. From May to June, the region added 9,700 jobs, more than 90 percent of which came from the private sector. When looking at growth since last June, the region’s economy added 34,600 jobs, a 2.6 percent increase. Meanwhile, the region’s private sector grew by more than three percent over that period. Over the same period, San Diego experienced a 1.7 percentage point drop in the unemployment rate and a 19 percent drop in people who identified as unemployed (after adjusting for lower labor force participation).

San Diego’s innovation sectors drove much of the region’s employment growth. Professional, scientific and technical services (PST) added 1,400 jobs since May 2014 and 6,800 jobs since June 2013, for an annual growth rate of 5.5 percent, well above the economy-wide average. PST accounted for more than 20 percent of the annual private employment growth—more than any other sector. The region’s maritime industry also experienced significant growth, with the ship and boat building sector growing 6.8 percent over the year.

[PST Chart]

San Diego’s tourism industry accounted for more than 34 percent of the region’s private employment growth from May to June, adding 3,000 jobs. In addition, the industry added 5,700 jobs since June 2013, with most of that growth coming from the food service industry. Health care and social services was another major contributor. The sector added 1,100 jobs since May and 5,700 jobs since last year.

San Diego’s goods producing industries continued their steady employment growth. Manufacturing employment has been rocky, but steadily grew year-over-year for more than five years. From June 2013 to June 2014, the industry added 2,400 jobs for about a 2.5 percent growth rate. Since June 2010, the industry has added more than 3,600 jobs. Meanwhile, the construction industry continues to soar. From June 2013 to June 2014, the industry added 5,200 jobs, about 8.5 percent growth. 

[MFG Chart]

While again this month’s job growth was led by only a few sectors, it’s important to note that most key industries have grown steadily from the previous year. Additionally, the sectors that drove the employment growth this month are either from our traded economies or are middle-to-high wage jobs in the region. For instance, employees in the PST industry make on average more than $100,000 per year. Manufacturing employees make more than $75,000 per year, more than 40 percent above the region’s average annual wage. High wage jobs help support other sectors in the economy by circulating more dollars throughout the economy. Therefore, consistent growth in these sectors is important for the economy as a whole.

Note: Our Economic Indicators Dashboard will show how our unemployment rate compares to other US metros and the US total rate when that information is released in the coming weeks.

July 15, 2014


The ‘World’s Smartest Company’ just made one of the world’s smartest decisions. Today, genomics pioneer Illumina announced its plans to expand in San Diego.  With the help of EDC, the City of San Diego has announced an agreement that will help keep the biotech company and hundreds of high-paying jobs in San Diego. The City will provide a tax rebate in exchange for the retention and creation of 300 well-paying jobs.

This is a perfect example of how San Diego can support middle class jobs while also encouraging economic growth,” said Mayor Faulconer. “This agreement keeps hundreds of high wage jobs in San Diego, ensures city residents benefit from over a million dollars in annual sales tax revenue, and strengthens our region’s leadership in biotechnology.”

The announcement was made today at press conference at Illumina’s headquarters with CEO Jay Flatley, City of San Diego Mayor Kevin Faulconer,  Council President Pro Tem Sherri Lightner and EDC President and CEO Mark Cafferty. The City Council will now vote to ratify the agreement during the week of July 21.

Founded in 1998 with 15 employees, Illumina now has 3,000  employees – 1,500 which are in San Diego –   with offices in virtually every continent. The innovator has also emerged as one of the most important companies in the global biotech field. Earlier this year, they became the first company to sequence the human genome for under $1,000 a person, making one of the most significant strides in personalized medicine in the past decade. That’s one of the reasons Illumina was recently named “World’s Smartest Company” by MIT Technology Review, ahead of Tesla Motors, Google and Samsung.

“We’re excited to continue to grow a state-of-the-art campus that will not only contribute to Illumina’s success, but also contribute to the growth of San Diego’s life sciences community, to the advancement of genetic research, and ultimately to help people around the globe realize the benefits of personalized medicine,” said Jay Flatley, Illumina’s CEO.

“The fact that the ‘World’s Smartest Company’ has decided to expand its footprint in San Diego speaks volumes to the quality of our biotech industry and innovation economy,” said Mark Cafferty, president and CEO of EDC. “Not only do we have a Mayor that values economic development and job creation, but we also have a cutting-edge company showing how much they value San Diego’s dynamic workforce, manufacturing expertise and research capabilities.”

After an initial meeting with Illumina,  Mark Cafferty called Mayor Faulconer to express his concerns about Illumina expanding outside the region. Within 24 hours, Mayor Faulconer had cleared his schedule to sit down with key Illumina stakeholders to discuss the innovator’s growth plans. 

Like most of San Diego’s successes, collaboration helped us get to this point. Cushman & Wakefield’s Steve Rosetta and Former EDC Board Chair Stath Karras were able to spot a need to engage with Illumina early on in this process.  BIOCOM, Go-BIZ and partners at the State of California were also involved in guiding Illumina’s decision. Another EDC Board Member David Hale, considered one of the godfathers of biotech in San Diego, had flagged Illumina as the “next big thing.” All bets are, David is right.

As San Diego works to tell its innovation story to the rest of the world, we can look to Illumina as a strong global company. They have chosen to stay in San Diego because of the collaboration between the City and other partners as well as the strong talent pool that exists here. They are in England. They are in Brazil. They are in the UK. They are in Japan. But at the end of the day, they are headquartered in San Diego. And that’s the story we need to continue to tell.

U-T has more.

June 25, 2014

Pharma Icon Medical Device Icon Genomics Icon Biofuels Icon Craftbeer icon

Timing is everything. With BIO 2014 in full swing, Jones Lang LaSalle (JLL) has released its list of the top U.S. life sciences clusters. No stranger to life sciences stardom, San Diego comes in third on the list. From algae biofuels to genomics, medical devices, and even beer, San Diego has seen a strong surge of cross-convergence throughout the biotech sector.

San Diego’s innovation economy is anchored by our strong biotech cluster. Not only are we home to what MIT researchers have dubbed ‘The World’s Smartest Company’ – Illumina – but the region’s leadership in stem cell research and the mapping of the human genome is second to none,” said Mark Cafferty, president and CEO of San Diego Regional EDC.

A combination of top-tier universities, a strong talent pool, and innovative companies have made San Diego a bio hub. Additionally, BIOCOM has worked to accelerate San Diego’s dynamic life sciences community.

This year’s rankings were based on life sciences employment concentration, employment growth, establishment concentration, venture capital funding and patents as well as NIH funding. If you are up on your rankings, you may realize that San Diego has dropped a spot since JLL 2013 rankings. In terms of job creation, San Diego is number one for life sciences employment concentration and number two for life sciences employment growth.

Adding employment growth and patent applications to the Global Life Sciences Cluster Report scorecard this year, two areas where the San Francisco Bay Area particularly excels, meant that San Diego dropped a spot from last year’s report,” said Brian Cooper, senior vice president at JLL. “However, as former president Bill Clinton declared on national television, San Diego has become the ‘human genome research capital in America,’ which bolsters our city’s strength in developing and supporting a collaborative cluster so attractive to emerging life science companies.”

One area where San Diego’s ranking has dropped is venture capital:  “Although we saw a dip in venture capital, this can be partially explained by the rise in local biotech companies going public. Last year was one of the strongest years for biotech IPOs in the past decade, which means in many cases companies did not need to raise late-stage money,” said Cafferty.

Eight San Diego companies went public in 2013 including Fate Therapeutics and Tandem Diabetes.          

June 20, 2014

This post is part of an ongoing monthly blog series dedicated to the California Employment Development Department (EDD) monthly employment release. Click images to enlarge in a new tab/window.

[Unemployment Chart]

The California Employment Development Department (EDD) released statewide county employment data today for the May 2014 period. San Diego's unemployment rate continued to decline from April to May, with the rate now down to 5.8 percent, the lowest it has been since May 2008. Unlike the major decline in April (read the full report here), the decline in May came without a drop in the region's labor force. From April to May, 3,000 joined San Diego's labor force, while the region experience a 3,800 person drop in civilian unemployment. Where last month's unemployment rate free fall was somewhat alarming, this month's decline appears to be a good sign for the economy. The region's unemployment rate is now below the national rate and remains well below the California rate.

The region added 5,100 jobs from April to May, 4,800 of which were in the private sector, which is another healthy sign for steady economic growth. Potentially more noteworthy, the region's economy added 29,300 jobs from May 2013 to May 2014, a 2.2 percent increase. The region's private sector grew by 2.5 percent from May 2013 to May 2014, a number roughly in the middle of expectations of the region's leading economists. As of May 2014, the region had 1,342,700 non-farm jobs, more than 82 percent of which were in the private sector.

[Construction Chart]

San Diego's goods producing industries continued their steady employment growth. Construction was up more than 1.5 percent from April to May, adding 1,000 jobs to the region. From May 2013 to May 2014, the construction industry has added 5,100 jobs, an 8.5 percent increase. Manufacturing growth has been a bit slower, but still steadily increasing, which is a great sign for the industry. From April to May, the manufacturing industry added 100 jobs. The industry added 1,700 jobs from May 2013 to May 2014.

As the region ramps up for summer tourism and convention season, the leisure and hospitality industry led most of the growth from April to May, adding 3,900 jobs to the economy, as expected. The industry was also up 3.7 percent from May 2013. Most of this month's growth came from the region's food services and drinking places. Health care and social assistance was the only other significant job creating industry from April to May, adding 1,000 jobs over the month period. 

[PST Chart]

The professional, scientific and technical services sector dropped by 700 jobs from April to May, but these monthly ebbs and flows are common in the industry, and we expect the industry to grow in the near future. From May 2013 to May 2014, the sector added 5,800 jobs, a 4.7 percent increase, which is among the highest growth sectors in San Diego over that period. Other significant growth sectors over the annual period include scientific research and development services sector and the region's retail and wholesale trade sectors. The former added 1,400 jobs while the latter combined to add 3,500 jobs.

While this month's job growth was led by only a few sectors, it's important to note that most key industries have grown steadily from the previous year. Additionally, the sectors that drove the employment growth this month are either from our traded economies, like tourism, or are leading indicators for strong economic growth, like construction and manufacturing. It is also positive to see the region's unemployment rate continue to fall while adding people to the labor force.

Note: Our Economic Indicators Dashboard will show how our unemployment rate compares to other US metros and the US total rate when that information is released in the coming weeks.

June 13, 2014

San Diego’s story is one of innovation and collaboration. Not only is San Diego home to the world’s smartest company and the premier telecommunications giant, but it is also at the forefront of diverse industries ranging from cybersecurity to genomics, sports and active lifestyle and cleantech. The region’s startup community is thriving and it is full of talented people solving some of the world’s toughest problems.

But don’t just take it from us. According to Bruce Katz of the Brooking’s Institution, San Diego embodies the metropolitan revolution. Katz, Mark Cafferty of San Diego Regional EDC and San Diego-based Genomics Pioneer J. Craig Venter are shown in a video below talking about how San Diego can be a model of growth for global regions.

 

 

As the world’s population pivots to cities, metropolitans have become with large-scale innovation, quality jobs and global economic opportunities. The top 100 U.S. metro areas occupy 12 percent of the nation’s landmass, yet they generate 68 percent of jobs, 75 percent of national GDP, and are home to 65 percent of the population. Part of San Diego’s success lies in its ability to work together to move the innovation ecosystem forward.

“We have to collaborate to compete,” said Mark Cafferty, president and CEO of San Diego Regional EDC. “We have companies - that many would perceive as competitors - working together to secure San Diego’s cyber infrastructure. We have public/private collaborations working to increase the region’s global footprint. We have everyone from entrepreneurs to Fortune 500 companies talking to one another about elevating the region on a global scale.”

The fact that San Diego is number one or two in biotechnology has created a huge industry here,” said Genomics Pioneer Craig Venter. “The universities provide a huge talent pool and so we found hiring new highly-trained people very easy.”

San Diego’s participation in the series is part of a deliberate approach to better tell the region’s dynamic story and cement its global identity.

As Bruce Katz says, “You don’t attract investment from around the world unless you’re really good at what you do….and that’s the San Diego story.”

We couldn't have said it better ourselves.

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May 29, 2014

On May 28, U.S. Secretary of Commerce Penny Pritzker announced the first 12 communities that have been selected to participate in the Investing in Manufacturing Communities Partnership (IMCP). Joining forces with many partners across the region, San Diego is included in the Southern California Designation, which was led by a team out of the University of Southern California Center for Economic Development.

The IMCP program is an initiative designed to revolutionize the way federal agencies leverage economic development funds by encouraging communities to develop comprehensive economic development strategies that will strengthen their competitive edge for attracting global manufacturing and supply chain investments.

“The 12 Manufacturing Communities announced today represent a diverse group of communities with the most comprehensive economic development plans to attract business investment that will increase their competitiveness,” said U.S. Secretary of Commerce Penny Pritzker. “IMCP is a critical part of our ‘Open for Business Agenda’ to strengthen the American manufacturing sector and attract more investment to the United States. Innovative programs like IMCP encourage American communities to work together to craft  strong, clear, strategic plans to attract manufacturing investment and jobs to transform themselves into globally competitive commercial hubs.”

So what exactly does this mean for San Diego and the Southern California region? As home to the world’s largest concentration of military personnel and with more than 80 percent of the state’s aerospace workers, the Advanced Manufacturing Partnership of Southern California Manufacturing Community (AMP SoCal) will concentrate on further transforming the aerospace and defense industry. Home to companies including Northrop Grumman, the Southern California region is positioned to be in the vanguard of  future avionics and aerospace industries.

Of course, you can’t become a leader in aerospace and defense without the workforce to get you there. Part of the strategy will involve a significant workforce training component that will partner with local colleges and universities to streamline certificate programs. The strategy also focuses on building a supplier network, research and innovation, infrastructure and site development. The strategy will also focus on creating an export acceleration workshop, which dovetails nicely into the Global San Diego Export plan, which was released in conjunction with the Brookings Institution this year.

On the local front, the partnership involves the City of San Diego, CONNECT, UC San Diego, Cleantech San Diego, San Diego East County Economic Development Council, San Diego Workforce Partnership and San Diego Regional EDC.

Following the success of last year’s MFG Day, on Oct. 3, many of the partners listed above will team up with local companies as they open their doors to the public to showcase an industry that supports nearly 90,000 local jobs. Stay tuned for more details.

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May 20, 2014
San Diego Digital Ambassadors Everybody recognizes San Diego’s enviable weather, but one of our greatest competitive strengths lies in the people who call this place home. San Diego is full of really smart people solving hard problems, making cool things and changing lives. This is the story we need to tell.
 
So, we've gone straight to the source. The videos below are part of our broader workforce talent attraction and retention efforts. They are not branded to EDC. We encourage you to share the videos on social media using the hashtag #GoSanDiego and stay tuned for information about a new talent attraction website, vimeo channel and our digital ambassadors program.

Tweet Worthy:

  • "We were in Vegas, but we saw a huge opportunity here...so we moved our company to DT SD"
  • Why SD? "We wanted to be around companies we could collaborate with & bounce ideas off of"

In search of opportunity and quality of life, Brandisty co-founders Alex Rolek and Michael Sacca decided to move their company from Las Vegas to San Diego. What they found in San Diego is an attainable quality of life and a growing startup community that fosters collaboration. 

Meet Michael Sacca, Brandisty from GoSanDiego on Vimeo

Check out Brandisty: brandisty.com

 

Tweet Worthy:

  • "I can only see that SD's tech community is going to get bigger and better"
While at UC San Diego, David Fischer became fascinated with home brewing after exposure to the growing San Diego craft beer movement.  Back then, he had an equally fascinating internship as a developer at Qualcomm. After successfully progressing at Qualcomm, he took a job at Amazon in Irvine and commuted via train. Fast forward a few years: David learned of a job opportunity here in San Diego combining two things he loves: programming and craft beer. This is David’s story at TapHunter, one of San Diego’s many growing startups.
 

Meet David Fischer, TapHunter from GoSanDiego on Vimeo.

Check out TapHunter and download the app: TapHunter.com