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August 3, 2015

Recently, EDC released its June Manpower Monthly Employment Report. Since then, the U.S. Bureau of Labor Statistics has released June employment data on all U.S. metros, which allows us to analyze some key indicators across geographies. Click on images to enlarge in a new window/tab.

HIGHLIGHTS

  • At 5.0 percent, San Diego’s unemployment rate ranked 10th among the 25 most populous U.S. metros.
  • From June 2014 to June 2015, San Diego's unemployment rate fell by -1.4 percentage points, which ranked 3rd.
  • San Diego's total employment grew by 2.8 percent from June 2014 to June 2015, which ranked 10th.
  • San Diego's employment in professional, scientific and technical services (PST) grew by 6.1 percentwhich ranked 3rd.
  • Manufacturing in San Diego grew by 2.8 percent from the previous year, the 6th highest growth rate.

[Unmployment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the June 2015 period for all U.S. metro areas. At 5.0 percent, San Diego County’s unemployment rate fell by 1.4 points from this time last year. This was the 3rd largest drop in the nation, among the 25 most populous U.S. metros. That fall put San Diego's rank at 10th among major U.S. metros and it remained below the U.S. overall rate of 5.5 percent.  

[Employment Chart]

When looking at employment growth, San Diego remained well above the national average. From June 2014 to June 2015, the region's employment grew by 2.8 percent, which ranked 10th among the 25 most populous U.S. metros. The U.S. average growth rate was at only 2.1 percent. Growth has slowed substantially across the U.S. in the past few months, but has since picked up the pace. San Diego has consistently outpaced the national employment growth this year and has been among the top 10 competitive metros in the nation.

[PST Chart]

San Diego's innovation economy is largely driving the region's growth. The region is outpacing nearly all other major metros in professional, scientific and technical services (PST) growth. PST is a sector of the economy very heavily associated with the region's innovation clusters. Much of the companies and employment in clusters like biotechnology, biomedical products, cleantech and information technology fall within the PST sector. Employment in the region's PST sector grew by 6.1 percent since last June, the 3rd most out of any metro studied here. This figure was nearly double the U.S. average and only behind California peers San Francisco and Riverside, which is a positive sign for the state and region's key traded clusters.

[MFG Chart]

San Diego's manufacturing sector growth picked up substantially in June. Manufacturing is another key industry for growth in the region, not only because manufacturing jobs are accessible and pay well, but also because certain manufacturing subsectors are critical to the region's innovation clusters. From June 2014 to June 2015, manufacturing employment grew by 2.8 percent. San Diego's manufacturing employment growth was more than double the U.S. rate of 1.3 percent. The region recorded the 6th highest growth rate among major U.S. metros. This marks the first month on record that manufacturing employment grew at or even near the pace of the overall regional economy. San Francisco and Riverside also experienced outstanding growth in their manufacturing sectors, which is a good sign for the state's manufacturing economy.

San Diego's economy continues to track well above the U.S. average and many of its peers. Unemployment is lower than average and the region experienced one of the largest annual drops in the nation. Meanwhile, San Diego's PST industry continues to be among the fastest growing in the nation. It will be interesting to see if the region can continue to experience such stellar manufacturing growth as the industry continues to rebound. 

EDC will be releasing the Manpower Employment Report with July 2015 data for San Diego on Friday, August 21stThank you to Manpower-SD for their ongoing support of EDC's employment trends research.

July 17, 2015

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“The region’s labor force continues to grow substantially as jobs are being added at a very solid pace. Despite a slight climb in the unemployment rate, all signs point to a positive economic picture for the region going forward.”
Phil Blair, President and CEO
Manpower San Diego


Highlights

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.

The California Employment Development Department (EDD) released statewide county employment data today for the June 2015 period. This month’s data shows that while unemployment climbed slightly in June, the labor force grew and the economy continued growth at a steady rate.

The unemployment rate climbed back to five percent for the first time since March. At 5.0 percent, the rate is 1.4 points lower than the previous year and 0.1 points higher than the previous month. The California average rate remained steady at 6.2 percent, while the U.S. average rate climbed to 5.5 percent, meaning San Diego remained much lower than the state and national averages.

Unemployment Rate

The unemployment rate climbed in part due to a rising labor force. This trend is typical in the region, as both public and private seasonal education workers tend to lose work in the summer months. Education accounted for 3,000 lost jobs from May to June, but the sector has grown nearly three percent since June of last year. While a seasonal up-tick in unemployment is common during this period, the 0.1 point change was a much lower change than in previous years. The unemployment rate climbed 0.3 points in 2014 and 0.5 points in 2013 during this same period.

From a year-to-year or non-seasonal perspective, the region’s economy continued to grow around 3.0 percent, adding 38,500 jobs from June 2014 to June 2015. The year-to-year growth rate has been consistently above the 2014 annual average of 2.2 percent. So far in 2015, that annual average is at 3.0 percent through June, compared to the U.S. average of only 2.2 percent.

Total Nonfarm Employment

The private sector economy again accounted for more than 90 percent of the year-to-year job growth and grew by 3.2 percent. This rate also outpaced the U.S. growth rate, which was 2.6 percent over that same period. This job growth continued to be fueled by key sectors. Construction grew by 5.7 percent and added 3,600 jobs. One of the region’s key manufacturing sectors, ship and boat building, grew by 18.0 percent and added 1,100 jobs.

We’ve continued to discuss the stagnant growth in overall manufacturing employment in these reports, but June showed promise for the region’s manufacturing industry. From June 2014 to June 2015, the industry added 2,700 jobs or 2.8 percent growth. This is the highest annual growth rate for the industry that we have on record, going back to 2001.

Manufacturing

Innovation service sectors have continued to show high job growth through 2015. The professional, scientific and technical services (PST) sector grew by 6.0 percent year-to-year, and accounted for 22.1 percent of all annual private job growth—the most of any sector in the region. This sector represents many of our innovation employers. Scientific research and development services, a subsector of PST that represents many cleantech and life science companies, showed slower growth this month compared to previous months this year.

Other key drivers for growth included the region’s health care sector, which added 6,900 jobs and accounted for approximately one-fifth of the region’s private job growth. Employment services or staffing in the region grew by 1,300 jobs and has been steadily increasing all year. Finally, while the tourism industry had a slower month than usual, it still accounted for 14.7 percent of the region’s private growth.

Year-to-Year Growth

While the headlines this month will show a climb in the unemployment rate, the story behind that figure is a positive one. A climb in unemployment from May to June is typical, but the fact that the climb was so slight was atypical and a good sign. The labor force continued to grow above one percent annually after years of steady decline. Finally, manufacturing industry employment is showing solid growth after years of slow growth or decline.

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 19, 2015

Manpower_Monthly

“Unemployment claims are nearly a fifth of what they were a year ago, with more than 17,000 fewer San Diegans unemployed. Meanwhile, the labor force has grown by more than 26,000, which shows that people are optimistic about getting back to work in the region.”

Phil Blair, President and CEO
Manpower San Diego


Highlights

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.

The California Employment Development Department (EDD) released statewide county employment data today for the May 2015 period. This month’s data shows that unemployment remained below five percent in May, as the economy continued to grow at an accelerated rate.

The unemployment rate remained below 5 percent at 4.9 percent. The rate is 1.3 points lower than the previous year and 0.1 points higher than the previous month. The U.S. and California average rates also increased to 5.3 percent and 6.2 percent respectively.

Unemployment Rate

While the unemployment rate experienced a slight uptick, the labor report was generally positive. Unemployment claims fell by 17,200 since May 2014, an 18.2 percent drop. At the same time, the labor force grew by 26,500 from May 2014 to May 2015 as the employers added more than 42,000 jobs. While labor force growth in May is typical in the region, the scale is much greater than in past years. This indicates that job seekers are becoming more confident as employers continue to add jobs

When looking at monthly or seasonal employment, San Diego County employers added 9,500 jobs from April to May. Goods-producers like construction and manufacturing added 2,300 jobs or roughly one quarter of all employment, while tourism accounted for more than half of the seasonal growth.

Unemployment Claims

From a year-to-year or non-seasonal perspective, the region’s economy grew by 3.2 percent, adding 42,400 jobs from May 2014 to May 2015. The year-to-year growth rate in San Diego continued to outpace the national average of 2.2 percent. Employment growth slowed slightly in the past few months, dipping below three percent, so this month's report is a positive sign that the slowing wasn't a pattern.

The private sector economy accounted for 93.9 percent of the year-to-year job growth and grew by 3.6 percent. This rate also outpaced the U.S. growth rate, which was 2.6 percent over that same period. This job growth continued to be fueled by key sectors and employment did not fall in any sectors in the regional economy. Construction grew by 7.1 percent and added 4,500 jobs. Ship and boat building grew by 18.3 percent and added 1,100 jobs. While manufacturing growth has been a concern in recent reports due to slow growth, the industry picked up the pace in May, growing by 2.2 percent, the highest annual rate since March of 2013.

Manufacturing

Innovation service sectors have continued to show high job growth through 2015. The professional, scientific and technical services (PST) sector grew by 6.6 percent year-to-year, and accounted for approximately one-fifth of the annual job growth. This sector represents many of our innovation employers. More specifically, scientific research and development services, a subsector of PST that represents many cleantech and life science companies, grew by 4.3 percent since last May.

The region’s tourism industry continued to show high year-to-year and seasonal growth as well. The leisure and hospitality industry added 8,500 jobs from May 2014 to May 2015, which is about 4.8 percent growth. The industry added 4,900 jobs from April to May, likely due to the ramping up of tourism season in the region. Employment services or staffing agencies experienced high growth in May. The industry added 500 jobs from March to April and 1,200 jobs since the previous year as people are getting back to work.

Year-to-Year Growth

The May labor market report was a great sign for the continued health of the region's economy. While the unemployment rate increased, it remained below five percent amid high labor force growth. Unemployment claims continued to fall year-to-year as the economy continued to grow at a pace well-above the national average. Growth remains concentrated in our traded economy sectors, like tourism and innovation, and in middle-to-high wage industries, like health care and construction. It will be interesting to see if this these positive signs will lead to continued growth in labor force through the summer months.

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 11, 2015

Recently, EDC released its April Manpower Monthly Employment Report. Since then, the U.S. Bureau of Labor Statistics has released April employment data on all U.S. metros, which allows us to analyze some key indicators across geographies. Click on images to enlarge in a new window/tab.

HIGHLIGHTS

  • At 4.8 percent, San Diego’s unemployment rate ranked 11th among the 25 most populous U.S. metros.
  • From April 2014 to April 2015, San Diego's unemployment rate fell by -1.3 percentage points, which ranked 4th.
  • San Diego's total employment grew by 2.6 percent from April 2014 to April 2015, which ranked 7th.
  • San Diego's employment in professional, scientific and technical services (PST) grew by 6.4 percentwhich ranked 4th.
  • Manufacturing in San Diego grew by 1.9 percent from the previous year, the 9th highest growth rate.

[Unmployment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the April 2015 period for all U.S. metro areas. At 4.8 percent, San Diego County’s unemployment rate fell by 1.3 points from this time last year. This was the 4th largest drop in the nation, among the 25 most populous U.S. metros. That fall kept San Diego's rank at 11th among major U.S. metros and it remained below the U.S. overall rate of 5.1 percent.  

[Employment Chart]

When looking at employment growth, San Diego remained well above the national average. From April 2014 to April 2015, the region's employment grew by 2.6 percent, which ranked 7th among the 25 most populous U.S. metros. The U.S. average growth rate was at only 1.4 percent. Growth has slowed substantially across the U.S., but San Diego has consistently outpaced the national employment growth this year and has been among the top 10 competitive metros in the nation.

[PST Chart]

San Diego's innovation economy is largely driving the region's growth. The region is outpacing nearly all other major metros in professional, scientific and technical services (PST) growth. PST is a sector of the economy very heavily associated with the region's innovation clusters. Much of the companies and employment in clusters like biotechnology, biomedical products, cleantech and information technology fall within the PST sector. Employment in the region's PST sector grew by 6.4 percent since last April, the 4th most out of any metro studied here. This figure was nearly double the U.S. average and only behind Seattle and California peers San Francisco and Riverside, which is a positive sign for the state and region's key traded clusters.

[MFG Chart]

San Diego's manufacturing sector growth picked up a bit in April. Manufacturing is another key industry for growth in the region, not only because manufacturing jobs are accessible and pay well, but also because certain manufacturing subsectors are critical to the region's innovation clusters. From April 2014 to April 2015, manufacturing employment grew by 1.9 percent. San Diego's manufacturing employment growth was above the U.S. rate of 1.6 percent. The region recorded the 9th highest growth rate among major U.S. metros. San Diego's position remained unchanged this month, but it's employment growth is much higher than it has been in past months. In the previous 12 months, the region's average annual growth rate was 1.3 percent, so the 1.9 percent growth recorded in April is a good sign for manufacturing employment.

While overall employment growth and growth in our manufacturing sector again wasn't comparatively stellar, the region's economy is still generally tracking well above the U.S. average and many of its peers. Unemployment is lower than average and experienced one of the largest annual drops in the nation. Meanwhile, our PST industry continues to be among the fastest growing in the nation.

EDC will be releasing the Manpower Employment Report with May 2015 data for San Diego on Friday, June 19thThank you to Manpower-SD for their ongoing support of EDC's employment trends research.