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May 22, 2015

Manpower_Monthly

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“San Diego’s unemployment rate is the lowest in nearly eight years as tens of thousands of San Diegans are finding jobs thanks to steady economic growth. We are seeing fewer unemployment claims as thousands return to the labor force.”

Phil Blair, President and CEO
Manpower San Diego


Highlights image

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 April 2015 period. This month’s data shows that unemployment continued to fall in April, as the economy continued to grow at a steady rate.

The unemployment rate fell below 5 percent for the first time since December 2007 and it is the lowest it has been since June 2007. At 4.8 percent, the rate is 1.3 points lower than the previous year and 0.3 points lower than the previous month. The U.S. and California average rates also fell substantially to 5.1 percent and 6.1 percent respectively.

UE_04_15

Unemployment fell so sharply from March to April because the labor force fell by 3,200 and unemployment claims fell by 4,900. While it is concerning that the labor force fell over the monthly period, it isn’t uncommon for the period due to seasonal forces. More importantly, the labor force increased by 17,400 and unemployment claims decreased by 18,900 from April 2014 to April 2015.

When looking at monthly or seasonal employment, San Diego County employers added 4,900 jobs from March to April. Goods-producers like construction and manufacturing experienced slight seasonal decline, while tourism and health care accounted for nearly all of the seasonal growth.

From a year-to-year or non-seasonal perspective, NFE_04_15 the region’s economy continued to grow around 3.0 percent, adding 38,300 jobs from April 2014 to April 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 3.1 through April.

The private sector economy accounted for 93.6 percent of the year-to-year job growth and grew by 3.4 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 5.3 percent and added 3,300 jobs, despite a mild seasonal decline. One of the region’s key manufacturing sectors ship and boat building grew by 18.6 percent and added 1,100 jobs. However, manufacturing growth continued to grow at a slow pace of 1.8 percent, which remains a concern given the importance of the industry to the region’s economy.

Innovation service sectors have continued to show high job growth through 2015. The professional, scientific and technical services (PST) sector grew by 6.39 percent year-to-year, PST_04_15and 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 5.26 percent since last March.

The region’s tourism continued to show high year-to-year growth as well. The leisure and hospitality industry added 6,500 jobs over that period, which is about 3.72 percent growth. Food service and drinking places accounted for 6,500 of those jobs. Health care services experienced high seasonal and non-seasonal growth. Education & Health services added 400 jobs from March to April and 5,900 jobs since the previous year.

YoY_04_15

The April labor market report continued to show positive indicators about the health of our regional economy. The unemployment rate fell below five percent for the first time since 2007. There remains concern about the slow return of the labor force from year-to-year since the recession, but unemployment claims are consistently falling and firms are steadily adding jobs. Growth remains concentrated in our traded economy sectors and in middle-wage industries like health care and construction. It will be interesting to see if this steady growth encourages greater labor force participation in the coming 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.


 

May 8, 2015

Recently, EDC released its March Manpower Monthly Employment Report. Since then, the U.S. Bureau of Labor Statistics has released March 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 5.1 percent, San Diego’s unemployment rate ranked 11th among the 25 most populous U.S. metros.
  • From March 2014 to March 2015, San Diego's unemployment rate fell by -2.0 percentage points, which ranked 3rd.
  • San Diego's total employment grew by 3.1 percent from March 2014 to March 2015, which ranked 10th.
  • San Diego's employment in professional, scientific and technical services (PST) grew by 7.2 percentwhich ranked 3rd.
  • Manufacturing in San Diego grew by 1.5 percent from the previous year, the 9th highest growth rate.

[Unmployment Chart]

The Bureau of Labor Statistics (BLS) recently released employment data for the March 2015 period for all U.S. metro areas. At 5.1 percent, San Diego County’s unemployment rate fell by 2.0 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 brought San Diego's rank to 11th among major U.S. metros and placed it below the U.S. overall rate of 5.6 percent.  

[Employment Chart]

When looking at employment growth, San Diego was above the national average. From March 2014 to March 2015, the region's employment grew by 3.1 percent, which ranked 10th among the 25 most populous U.S. metros. The U.S. average growth rate was at only 2.3 percent. San Diego has consistently outpaced U.S. 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 7.2 percent since last March, the 3rd most out of any metro studied here. This figure was roughly 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 has slowed in recent months. 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 March 2014 to March 2015, manufacturing employment grew by only 1.5 percent. San Diego's manufacturing employment growth was just below the U.S. rate of 1.6 percent. The region recorded the 9th highest growth rate among major U.S. metros. Clearly, manufacturing has slowed in most major metros across the U.S. outside of Detroit, Denver and Portland, so this is not a sign unique to San Diego. However, it will remain important to track manufacturing in the coming months to see if growth accelerates.

While overall employment growth and growth in our manufacturing sector weren'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 April 2015 data for San Diego on Friday, May 15thThank you to Manpower-SD for their ongoing support of EDC's employment trends research.

April 17, 2015

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"San Diego's labor market has really hit its stride. The unemployment rate is at a seven year low and two full percentage points lower than a year ago. More than 30,000 people who were unemployed have found employment in the past year, and the labor force continues to grow. Job growth has been led by key middle-to-high-wage industries like construction, health care, education, manufacturing and scientific services. These are great signs as we move ahead in 2015."
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 March 2015 period. This month’s data shows that unemployment was down again in March as the economy continued to grow at an increasingly solid pace.

The unemployment rate is likely the big story again this month since at 5.1 percent, it is the lowest it has been in nearly seven years (April 2008). This is 2.0 points lower than the previous year and 0.2 points lower than the previous month. San Diego’s unemployment rate remained below the U.S. average of 5.6 percent and well-below the California average of 6.5 percent. The region also experienced labor force growth. More than 3,000 people were added to the region's labor force from March 2014 to March 2015, indicating that the continued drop in unemployment is likely due to a healthy economy rather than a dwindling labor force.

[Unemployment Chart]

When looking at monthly or seasonal employment, San Diego County employers added 8,000 jobs from February to March. Construction accounted for a quarter of this monthly growth, adding 1,500 jobs from February to March. Tourism , health care and private education industries also experienced high seasonal growth, while retail and wholesale trade experienced slight seasonal declines.

From a year-to-year or non-seasonal perspective, the region’s economy is showing signs of picking up the pace. Total non-farm employment grew by 40,900 jobs from March 2014 to March 2015­—a 3.1 percent growth rate. This exceeds the U.S. growth rate of 2.3 percent. In all three months to date in 2015, the region recorded annual job growth of more than three percent, compared to 2014 when not a single month exceeded three percent annual growth.

[Employment Chart]

The private sector economy accounted for 92 percent of the year-to-year job growth and grew by 3.4 percent. This rate also outpaced the U.S. growth rate, which was 2.7 percent over that same period. This job growth continued to be fueled by key sectors. Construction jobs grew by 7.4 percent and added 4,600 jobs. One of the region’s key manufacturing sectors ship and boat building grew by 18.7 percent and added 1,100 jobs. 

Innovation service sectors also continued to show high job growth. The professional, scientific and technical services (PST) sector grew by 7.2 percent year-to-year, and accounted for approximately a quarter of the 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 8.4 percent since last March.

[PST Chart]

The region’s tourism continued to show high year-to-year growth as well. The leisure and hospitality industry added 7,300 jobs over that period, which is about 4.3 percent growth. Food service and drinking places accounted for 7,000 of those jobs. Private and public education services experienced high seasonal and non-seasonal growth. Education services added 1,400 year-to-year jobs (4.5 percent growth) while state and local government education added 2,500 year-to-year jobs (3.0 percent growth).

The March labor market report was all around positive. Low unemployment, high job growth and a growing labor force are all excellent signs of burgeoning regional economy. More importantly, this growth continues to be driven by key sectors to the region's economy. Continued rapid growth in construction indicates that regional builders are constructing important infrastructure to address a growing economy. Furthermore, the region's key high-wage and innovative sectors are driving private sector growth. The region is far outpacing the state and nation in these important metrics, all good signs for the year ahead.

[Growth Chart]





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.

April 8, 2015
Every quarter, San Diego Regional EDC analyzes key economic metrics that are important to understanding the regional economy and San Diego’s standing relative to other major metropolitan areas in the U.S. This issue covers data from the October 2014 to January 2015 quarter.
 
In this issue, EDC presents updates on trends in employment, real estate and venture capital, with a special spotlight on wage growth. The spotlight investigates whether job growth occurred in high-wage industries.
 
Download the full snapshot to view all of the tables, graphs and trends for this quarter. 
 

 

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