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Research Blog

March 23, 2018

Each month the California Employment Development Department (EDD) releases industry data for the prior month. This edition of San Diego’s Economic Pulse covers February 2018 data, including unemployment, new business establishments, and job postings.
 
Highlights include:
  • The region’s unemployment rate was 3.5 percent in February, down 0.1 percentage points from last month, and 0.7 percentage points lower than a year ago.
  • Most jurisdictions saw an increase in the unemployment rate from the month prior. However, five did see a small decrease, while one remained unchanged. 
  • The labor force grew again after two months of consecutive declines, adding 11,700 workers during the month. The labor force is now up 28,300 compared to a year ago.
  • Year-over-year, wholesale trade growth outpaced all other key sectors, up 9.4 percent.
 
Read the full Economic Pulse here.
February 23, 2018

A world leader in 3G, 4G and 5G wireless technologies, Qualcomm is San Diego County’s largest publicly traded company. The locally-grown company has, quite literally, put the smart in our smart phones.

More than that though, Qualcomm has poured into the San Diego community. Its innovation and investment in this region has catalyzed life-changing developments in robotics, unmanned systems and mobile health, as well as inspired more than 3,300 students to pursue careers in STEM through its Thinkabit Lab.

And as Qualcomm juggles an unsolicited offer from Broadcom and a record-breaking acquisition of NXP Semiconductors, there is no denying that this San Diego tech innovator has shaped the region's economy and connected millions across the globe.

EDC recently produced an economic impact assessment of Qualcomm, based on 2017 data. The numbers:

  • In 2017, the total economic impact of Qualcomm on the San Diego region’s economy was an estimated $4.9 billion. This is equivalent to 35 Comic-Cons.
  • While Qualcomm directly employs 13,000 people locally, Qualcomm’s presence in the region impacts an estimated 36,050 jobs when considering direct, indirect and induced effects (expenditures of production, B2B spending and local spending of wages by employees and other businesses).
  • Every dollar generated directly by Qualcomm results in an increase of almost $2 in the San Diego region’s GDP.
  • In 2017, Qualcomm impacted approximately $3.4 billion in wages in the regional economy.
  • In 2017, Qualcomm impacted an estimated $7.9 billion in economic activity (output).

EDC will release the full economic impact assessment on Qualcomm in April. Stay tuned.

Follow along and share your support with #QualCOMMUNITY.

 

February 21, 2018

Recovering from a decrease in employment during Q3 2017, San Diego, and the overwhelming majority of the most populous metros, experienced an increase in employment during Q4 2017. The region’s total nonfarm employment grew 22,100, or 1.5 percent during the quarter. Compared to a year ago, nonfarm employment was up 21,100, or 1.5 percent.

Meanwhile, San Diego’s unemployment rate was 3.3 percent in Q4, the lowest the region has seen in the last 17 years and down from 4.1 percent in Q3.

Key findings from the Quarterly Economic Snapshot:

  • San Diego closed Q4 2017 with an unemployment rate of 3.3 percent, the 7th lowest among top U.S. metros and below the state rate of 4.2 percent.
  • With the holiday season in full bloom, the retail sector continued to grow, adding 7,500 jobs in Q4. Other strong contributors to the quarterly employment growth were professional, scientific, and technical services and state and local government, together adding 13,200 jobs.
  • The median home price rose slightly from the previous quarter, and is now up 7.4 percent compared to a year ago.
  • VC dollars in the region increased 33 percent compared to a year ago.

The 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 October to December (Q4) 2017.

Read it here, and see our research center for more.

February 15, 2018

Today, EDC launched a data-driven initiative to drive economic growth and inclusion in the region. Catalyzed by San Diego’s participation in the Brookings Institution’s Metropolitan Policy Program learning lab in 2017, EDC released research that highlights the region’s economic pain points and necessity for an employer-led approach to tackling inclusivity issues.

Despite record-low unemployment and a renowned innovation ecosystem, San Diego has an inclusion problem that cannot be ignored,” said Mark Cafferty, president and CEO, San Diego Regional EDC. “Small businesses cannot compete with larger corporations, while one million people cannot afford to live here. This initiative is a call to action for San Diego’s employers – we must come together to bridge the gaps in our economy.”

While the rise of the innovation economy has created wealth and opportunity across the region, it has also widened economic inequalities. If San Diego does not change its status quo, the region will lose employees and companies to other regions. 

Key facts:

With the combination of a high cost of living, low educational attainment in our fastest growing population and a small business-centric economy that struggles to pay competitive wages, it is imperative that San Diego employers take action to promote economic inclusion.

Convened by EDC, a Steering Committee of local employers will work to create an actionable platform to achieve three goals: close the minority achievement gap; equip small businesses to compete; and address the affordability crisis. The committee consists of nearly 40 local employers including Northrop Grumman, Solar Turbines, Sempra, Thermo Fisher Scientific, San Diego Padres and more.

Inclusion is not a philanthropy issue. This is about economic competitiveness, and San Diego’s employers must lead the charge in addressing inequity in our local workforce, said Janice Brown, founder and owner, Brown Law Group, and incoming board chair, San Diego Regional EDC. “But if any region can change and reinvent itself, it’s this one.” 

If the region intends to compete in the global market, employers and economic development leaders must work to ensure all workers have equal opportunity to thrive. While talent attraction efforts are necessary in an increasingly global economy, San Diego must ensure its future workforce is prepared for jobs in the innovation economy and recognize opportunity within its local talent pool.

To view the research summary, click here.

Over the next year, EDC and the Steering Committee will produce ongoing research and develop actionable recommendations to inclusive economic development in San Diego that will be updated on sandiegobusiness.org/inclusivegrowth.

The initiative launched at an event hosted by EDC at the Jackie Robinson YMCA, with special guest Amy Liu, vice president and director of the Metropolitan Policy Program, at the Brookings Institution.

Other partners and organizations are making progress as well. On February 27, National University and the San Diego Workforce Partnership are hosting Dr. Raj Chetty, leading impact economist from Stanford University, and the author of research that inspired much of the focus on inclusion, nationally.  He will discuss social mobility markers and the link between mobility and economic growth. To RSVP for the event, click here.