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Research Blog

December 14, 2016

Often hidden behind San Diego’s pristine beaches and thriving regional economy are the  socioeconomic disparities that exist across the county’s 18 cities.

As an organization that aims to support growth of San Diego’s regional economy, EDC understands the importance of including all communities in our work. There is much debate about what the term ‘inclusive economic growth’ means, and it’s something we are working with partners to better define in 2017. In order to understand – and define it – we must know where we currently stand. 

EDC took a closer look at the 18 cities comprising the county. The large discrepancies in poverty rates, income and education across San Diego cities show that while we are part of the largest economies in the world, we have much to improve upon. 

According to the American Community Survey, San Diego’s poverty rate is 13.8 percent – slightly below the national and state rates of 14.7 and 15.3 percent, respectively. However, eight cities in the region have poverty rates above the national average. The region’s educational attainment of 36 percent is above the national and state rates of 30.1 and 31.7, respectively, but 10 regional cities fall below the national rate. Similarly, even when the region’s median household income of $66.2K is over 20 percent higher than the national median household income of $53.7K, six out of the 18 cities fall below the national median.

Highlights from the analysis:

  • National City, with a poverty rate of 24.5 percent, is almost 10 percentage points higher than the national rate of 14.7 percent.
  • El Cajon, with a median household income of $46K, has 49 percent of its total population living below 200 percent of the poverty threshold.
  • Del Mar, with the lowest regional poverty rate of four percent, has the highest median household income at $103K and the highest educational attainment at 72 percent.
  • On the other end of the spectrum, National City has the lowest median household income at $40K (less than 40 percent of Del Mar’s) and the lowest educational attainment at 12 percent (less than 20 percent of Del Mar’s). 
  • The cities of National City, Lemon Grove, Imperial Beach and Escondido have at least 25 percent of their under 18 population living below the federal poverty threshold.
 
The prosperity of San Diego is dependent on the success and growth of all of the region’s cities. EDC is committed to increasing the dialogue around inclusive economic growth and, through data and analysis, shedding light on the region’s disparities. 
 

 

September 30, 2016

Understanding any economy starts with strong data. At EDC, we pour significant resources into research, so we can better understand San Diego's economic strengths, and even more importantly, our weaknesses.

Finding the right data to quantify our economy and understand where San Diego’s stack up with other regions is where it becomes more difficult. Many regions – including San Diego – call themselves innovative, but measuring it becomes more complicated.

In 2012, EDC joined the Global Cities Initiative (GCI), a joint project between Brookings and JPMorgan Chase, which helps metropolitan leaders grow their regional economies by strengthening international connections and competitiveness. Conducting independent research has been a cornerstone of the GCI since its launch.

This week, EDC/World Trade Center San Diego staff traveled to Washington, D.C. to take part in the Brookings Global Cities Summit – a culmination of five years of research and exchanges to help metros grow their economy.

Based on five years of research, Redefining Global Cities," the latest Brookings report, found that there were seven types of global cities. 

There are the Global Giants – regions like London, New York and Paris; these cities are financial hubs and serve as the control center for the world’s largest economies. Then there are the American Middleweights (Cincinnati, Indianapolis, Phoenix, Saint Louis, etc.) and the International Middleweights (Frankfurt, Munich, Rome, Barcelona, Toronto, etc.): connected and important mid-sized cities where post-recession growth has lagged. And then there are the Knowledge Capitals – 19 mid-sized cities throughout the U.S. and Europe that are home to talented workforces and elite research universities.

San Diego is in good company as a Knowledge Capital with Boston, Chicago, San Francisco, Stockholm, Zurich and others.

Turns out, when it comes to patent intensity, San Diego is second out of 123 global cities. When we say that San Diego is innovative, it’s not just boosterism – we have the data to back it up.

As a Knowledge Capital, San Diego may attract a highly-educated workforce and high-levels of entrepreneurship, but one area where it lags is foreign direct investment. Nearly 98 percent of our economic growth is going to come from growing small and medium-sized enterprises and startups already present in the region. San Diego’s participation in the Global Cities Initiative is not just an opportunity to connect with likeminded cities; it’s an opportunity to connect with and better understand our customers. After all, our SMEs will not reach peak growth rates without expanding their businesses and finding customers outside the region. As a response to this insight, we founded the MetroConnect Initiative, a comprehensive export assistance program now in its second year.  

As a region, we’re proud to be known as a Knowledge Capital, but our work is still cut out for us. By connecting with other GCI cities, we can expedite our economic growth through careful understanding and analysis of best practices. And through insightful data and programs like MetroConnect, we’re hopeful that we’re well on our way.

August 5, 2016

This week, U.S. Secretary of Commerce Penny Pritzker and Qualcomm CEO Steve Mollenkopf joined a panel of local business leaders from Solar Turbines, Solatube and Northrop Grumman to unveil UC San Diego School of Global Policy and Strategy’s new study on the importance of the Trans-Pacific Partnership (TPP) to the nation and San Diego. The summary, “San Diego and the Trans-Pacific Partnership,” produced by World Trade Center San Diego, explains how San Diego’s unique economic assets position the region to realize relatively greater benefits from TPP than the U.S. as a whole.

TPP, an international trade deal negotiated by the Obama administration and 11 other Pacific Rim countries, seeks to lower trade barriers for exporters and increase intellectual property protections for multinational companies.

San Diego’s prime location on the edge of the Pacific Rim, as well its specialization in advanced manufacturing and other key industries tied to the innovation economy – including scientific R&D, engineering, software and cybersecurity – position the region to benefit disproportionately from TPP.

Key findings include:

  • When compared to other TPP member countries, the U.S. has one of the least restrictive markets – it is easier for foreign markets to export to the U.S. than it is for U.S. companies to send their products abroad.
  • More than 97 percent of San Diego’s exports – primarily high-value advanced manufacturing products – are sold in TPP markets and are collectively worth $22 billion.
  • Enhanced IP protections would benefit San Diego’s innovation economy; San Diego is the third most patent intensive region in the world and five times more specialized in scientific R&D than the nation as a whole.
  • Increased export growth could produce real rising wages for 150,000 high-wage jobs in the region’s manufacturing and innovation sectors.
  • San Diego’s service-providing sector – generally non-traded industries accounting for 87 percent of total employment – is largely insulated from foreign competition. 
July 22, 2016

Phil Blair

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“While June's unemployment rate climbed – a typical trend as educational workers tend to lose employment during summer  key sectors like leisure and hospitality, PST and PBS all experienced strong year-over-year growth. San Diego's unemployment rate continues to remains lower than statewide unemployment.”
Phil Blair, Executive Officer
Manpower San Diego


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

The California Employment Development Department (EDD) released statewide county employment data today for June in addition to revised data for May 2016. This month’s data shows that San Diego's economy has slowed during the summer months; unemployment experienced an increase while total regional employment grew more slowly than previous months.  

June’s unemployment rate climbed back to 5.1 percent for the first time since October 2015; up 0.9 percentage points from a revised 4.2 percent in May. The unemployment rate is down 0.1 points from the previous year. San Diego’s unemployment rate continues to remain lower than statewide unemployment and is now on par with national unemployment rates of 5.7 and 5.1 percent, respectively.

San Diego’s rate rose in part due to an increase in the labor force. A familiar trend in the region this time of year as many public and private seasonal educational workers tend to lose employment during the summer months. Education accounted for nearly 1,000 jobs lost during May and June combined. Although a seasonal uptick in unemployment is common during the summer, the increase of 0.9 percentage points is significantly higher than seen in recent years. Additional job losses in finance and insurance in addition to health care and social assistance also contributed to the increase in unemployment.

Total nonfarm employment increased steadily since May, adding 8,000 jobs. More importantly, year-over-year nonfarm employment went up by 37,600, a 2.7 percent increase. The private sector drove employment growth in June, as private employment accounted for nearly 83.2 percent, or an increase of 31,300 jobs, of all employment growth over the year. The total private sector grew by 2.7 percent year-over-year.

 At the height of summer and peak tourism season, the region’s leisure and hospitality industry was the largest driver of regional employment growth, adding 5,400 jobs since May. Leisure and hospitality experienced strong year-over-year growth, adding 7,800 jobs, a 4.2 per

cent increase over the previous year, and contributing to 24.9 percent of private sector growth.

Professional, scientific and technical services (PST), a subset of professional and business services (PBS) and strongly associated with the region’s innovation economy, accounted for over 11.5 percent of private sector growth, adding 1,000 jobs since May.

While the June report released today showed increased unemployment in the region’s economy, which is in line with familiar seasonal trends, overall job growth was solid. Unemployment remains well below the state and year-over growth in the region was spread out across a variety of base sectors.