Each month the California Employment Development Department (EDD) releases employment data for the prior month. This edition of San Diego’s Economic Pulse covers April 2019. Check out EDC’s research bureau for more data and stats about San Diego’s economy.
Each month the California Employment Development Department (EDD) releases employment data for the prior month. This edition of San Diego’s Economic Pulse covers March 2019. Check out EDC’s research bureau for more data and stats about San Diego’s economy.
San Diego Regional Economic Development Corporation released a study— Qualcomm’s Contribution to San Diego’s Economy, showcasing how the company’s investment in the community has impacted the industry, economy and region as a whole. Since its humble beginning in 1985, Qualcomm has been at the forefront of innovation, entrepreneurship and research and development (R&D.) It settled with a home base in San Diego, providing a significant economic impact and tremendous contributions to our region since its founding.
Qualcomm is not only a technology industry leader in our region; it also engages the marketing, accounting, legal services, consulting, environmental and engineering industries in San Diego, in-turn creating jobs and opportunities along every step of the company’s tech journey. Just in 2018, Qualcomm had an economic impact of approximately $4 billion in the San Diego economy. To put that into perspective, it’s the equivalent of 41 Breeder’s Cup World Championships, 27 San Diego Comic-Cons and 3.6 San Diego Convention Centers.
Further, in 2018, Qualcomm created approximately 1,600 job postings, recruiting top-tier entrepreneurial talent while continuing to dedicate resources to strengthening our communities and educating the next generation. To its core, Qualcomm understands the importance of investing in the workforce of tomorrow. They have done just that through an interactive tutorial program called Thinkabit Labs, which engages students from different backgrounds and inspires them to be the next generation of inventors – combining science, technology, engineering and mathematics (STEM) for an educational and hands-on learning experience. Through Thinkabit, students mature by learning real-world problem-solving skills, collaborate in teams and motivate creativity on a myriad of levels. Qualcomm has hosted students from 107 schools across San Diego, inspired close to 22,000 local students and helped them create more than 5,000 inventions. Over the course of this program, Qualcomm has expanded and collaborated with 20 school districts and organizations.
Just as Qualcomm has invested into our youth, it has equally invested into our local communities. Since 2000, Qualcomm has donated more than $355 million to the San Diego community from both Qualcomm and the Qualcomm Foundation. Just in the last five years, Qualcomm employees have donated to more than 1,000 local organizations, requested matches for more than 17,900 organization and contributed more than $26 million to local communities. Qualcomm truly is a trailblazer for local philanthropy.
Many people think of Silicon Valley as the premier technology hub in America, however Qualcomm is working tirelessly to bring that title to San Diego. It’s no secret that Qualcomm is one of the leaders in 5G and also a premiere leader in creating technology the world loves. More than 130,000 patents and patent applications have come from Qualcomm in the past year. While it couldn’t have been done without our San Diegans, this type of technology and innovation is something that should be celebrated. Roughly 12 percent of the region’s total tech talent is employed by Qualcomm. To break down the impact on local jobs, Qualcomm has created: 10,170 induced jobs, which come from the result of local spending of labor income; 7,680 indirect jobs, the effect of local, inter-industry or B2B spending through existing economic structure; and 10,030 Qualcomm employees, which all adds up to an outstanding 27,880 total jobs. Because of this, for every job at Qualcomm, an additional 1.8 jobs are supported elsewhere in the San Diego economy. It truly is the job multiplier – integrating other companies and industries to provide support and collaboration that leads to industry-leading technology.
Our economic study “Qualcomm’s Contribution to San Diego’s Economy” shows some of the great contributions that Qualcomm has given to the San Diego region, but it wouldn’t be possible without the people. Thank you to the communities, employees and organizations that are helping build San Diego.
San Diego Regional Economic Development Corporation released a study—Qualcomm’s Contribution to San Diego’s Economy, showcasing how the company’s investment in the community has impacted the industry, economy and region as a whole. Since its humble beginning in 1985, Qualcomm has been at the forefront of innovation, entrepreneurship and research and development (R&D.) It settled with a home base in San Diego, providing a significant economic impact and tremendous contributions to our region since its founding.
Qualcomm is not only a technology industry leader in our region; it also engages the marketing, accounting, legal services, consulting, environmental and engineering industries in San Diego, in-turn creating jobs and opportunities along every step of the company’s tech journey. Just in 2018, Qualcomm had an economic impact of approximately $4 billion in the San Diego economy. To put that into perspective, it’s the equivalent of 41 Breeder’s Cup World Championships, 27 San Diego Comic-Cons and 3.6 San Diego Convention Centers. This research was sponsored by Qualcomm, who provided employee data for EDC’s impact analysis.
Every quarter San Diego Regional EDC 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 issue covers data from Q4 2018.
Recovering from a decrease in employment during Q3, San Diego, and 24 of the most populous metros, experienced an increase in total nonfarm employment during Q4. Ramping up for the holiday season, the region added 21,500 jobs – a 1.4 percent increase in employment during the quarter. Compared to a year ago, nonfarm employment was up 25,400 jobs, or 1.7 percent.
Meanwhile, San Diego’s unemployment rate was 3.2 percent in Q4, unchanged from Q3.
Key findings from the snapshot:
San Diego closed Q4 with an unemployment rate of 3.2 percent and the sixth lowest among the 25 most populous metros.
With the holiday season in full bloom, the retail sector continued to grow, adding 8,500 jobs in Q4. Other strong contributors to the quarterly employment growth were education and health services, and transportation and utilities, together adding 4,100 jobs.
Year-over-year, the region’s median home price continued to climb, growing by 2.6 percent.
VC dollars in the region increased 21.4 percent compared to the previous quarter.
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) 2018.
Each month the California Employment Development Department (EDD) releases employment data for the prior month. This edition of San Diego’s Economic Pulse covers February 2019. Check out EDC’s research bureau for more data and stats about San Diego’s economy.
Thank you to Manpower San Diego for making this possible.
Highlights include:
The region’s unemployment rate was 3.5 percent in February, down from a revised 3.8 percent in January, and unchanged from the year-ago estimate of 3.5 percent.
San Diego’s unemployment rate remains below both the state rate of 4.4 percent and the national rate of 4.1 percent.
The labor force grew by 3,700 workers during the month and is now up 24,600 compared to a year ago.
Total nonfarm employment is up 9,700 in February and up 19,900 over the year.
The largest employment gain over the year occurred in educational and healthcare services, which added 6,900 jobs.
San Diego has emerged as a leader for the development of cybersecurity technology and the delivery of cyber-related services. The region’s healthy ecosystem, including its strong military presence, world-class academic institutions, incubators and strong partnerships between industry associations and governments, has positioned San Diego as a hub for cyber operations. Today, there are more than 150 firms in the San Diego region focused exclusively on cyber. With incidences of cyber attacks on the rise worldwide, the industry’s innovative companies are equipped to meet the global market’s increasing demands for new products and technologies. This study was produced in collaboration with the Cyber Center of Excellence.
In a world where Internet-enabled devices have become embedded in everyday objects, the need for cybersecurity has never been more vital. San Diego’s roots in wireless technology, combined with its top tier engineering talent and military presence, make it a fertile ground for cybersecurity talent. And that’s exactly what EDC’s most recent economic impact study found.
Commissioned by San Diego Cyber Center of Excellence, a San Diego-based nonprofit organization dedicated to accelerating the region’s cyber economy, the study found that San Diego had more than 150 core cyber firms that employ 4,920 people in the region. The Navy’s Space and Naval Warfare Systems Command (SPAWAR) provides an additional3,530 jobs to San Diego’s cybersecurity industry. In total, there are 8,450 direct jobs – up 11 percent from 2016 (faster than the regional employment growth of 3 percent).
“Too often San Diego worries about falling behind Silicon Valley or the East Coast, but this study conveys we have the talent and workforce to punch above our weight,” said Rear Admiral (Ret), Ken Slaght, CCOE chair and president of Cyber Center of Excellence. “San Diego’s premier educational institutions, existing industry base and robust federal assets, seed not only the cyber workforce but the innovation needed to protect our nation.”
The study was launched at Qualcomm on March 13, and featured a keynote from Dr. John Zangardi, CIO at the U.S. Department of Homeland Security, as well as an in-depth look at the interactive research tool, presented by EDC’s Research Director Kirby Brady.
With many economists forecasting an economic downturn in the years ahead, small businesses are often the most vulnerable to a changing economy. However, a new survey released by Innovate78 – a collaboration among Carlsbad, Escondido, Oceanside, San Marcos and Vista – found that small businesses are feeling optimistic about the future. In fact, 85 percent of small businesses along the 78 Corridor project financial growth over the next two years, demonstrating stability in San Diego’s North County.
“Most small business owners are so busy running their companies, that they don’t have time to step back and leverage the resources available to them,” said Michelle Geller, Economic Development Manager for the City of Escondido. “As part of Innovate78, we are taking a collaborative, data-driven approach to understand their business’ needs. Using the data from this study, we will be able to better collaborate with regional partners to ensure these businesses remain viable and a key economic engine in North County.”
“The Small Business Ecosystem Along the 78 Corridor” surveyed 164 small businesses – firms with fewer than 100 employees – as a way to uncover insight and gain a deeper understanding of small business perceptions of the regional business climate.
According to EMSI, small businesses make up 98 percent of the 78 Corridor’s businesses – mirroring the broader San Diego region.
KEY FINDINGS:
Businesses are growing. Over the next two years, 85 percent expect to grow in terms of financial performance.
Companies have a focus on local customers. In total, 69 percent said their customers were primarily in Southern California, whereas only 7 percent said their customers were primarily international.
Job growth will continue to be fueled by small businesses. Over the next two years, 45 percent of 78 Corridor small businesses project employment growth, while only 6 percent say they will have fewer employees.
Generating new sales is the biggest need for small business owners. A majority – 88 percent – of small businesses said sales/new business was a challenge. As a way to generate sales, survey respondents identified ‘marketing’ as their highest future priority.
Connecting to resources is imperative. Small business identified needing assistance with financing, marketing and business development. However, many cited a lack of knowledge of available resource providers, like municipalities, economic development organizations, and chambers of commerce.
“A quick glance at the data confirms that small businesses are a key driver for our economy. But when you dig a little deeper, you uncover trends that are key to understanding the 78 Corridor’s competitive advantage,” said Kirby Brady, director of research at EDC and the author of this study. “The study shows that small businesses along the 78 Corridor are both profitable and resilient.”
The study concluded that 73 percent of Innovate78 small businesses reported financial growth in the past two years, and 62 percent of businesses have been operating for more than five years, a metric often associated with resiliency. According to the Small Business Administration, nearly 50 percent of small businesses fail before the five-year mark. While not a direct comparison, this data suggests that small businesses along the 78 Corridor are outlasting U.S. small businesses.
CHALLENGES AHEAD:
While Innovate78 businesses are faring well collectively, many challenges remain. With the 78 Corridor’s December 2018 unemployment rate at 3.2 percent, finding skilled talent is increasingly difficult – a trend many rapidly growing regions across the country are facing.
“From hiring to finding new customers, I face many challenges on a day-to-day basis that I did not anticipate before starting my own business,” said Jiang Fan, president of Carlsbad-based American Lithium Energy. “While these are trials that many small business owners face, I believe that because of the 78 Corridor’s unique access to both San Diego and Orange County’s labor market, as well as the abundant resources the cities offer, that there’s never been a better time to own a small business on the 78 Corridor.”
If you are a business along the 78 Corridor and are looking to connect with available resources, please visit Innovate78’s resource page and/or contact your city’s economic development department directly.
Small businesses, which represent approximately 98 percent of all local companies, are the backbone of the regional economy. This initiative, which includes a survey of 164 businesses along the 78 Corridor, seeks to uncover insight and gain a deeper understanding of small business perceptions of the regional business climate. The end goal is to develop new and enhance existing programming and support for small businesses in the 78 Corridor. For the purpose of this survey, small businesses are defined as having fewer than 100 employees.
San Diego Regional Economic Development Corporation released a study— 
