The San Diego Monthly Employment Report (April to May 2014) shows some encouraging figures. Highlights from the report include:
- San Diego’s unemployment rate dropped 0.3 percent, from 6.1 percent in April to 5.8 percent in May
- 6,900 San Diegans found employment
- Unemployed persons in San Diego declined by 3,800
- 3,000 people entered or re-entered the labor force
- 5,100 nonfarm jobs were added to the region
- The two industries with the largest month-over employment gains were construction and leisure and hospitality
The California Employment Development Department (EDD) reported a drop in San Diego’s unemployment rate from the revised rate of 6.1 percent in April 2014 to 5.8 percent in May 2014. This 0.3 percent decline in the unemployment rate resulted from a decrease of 3,800 unemployed individuals and an increase of 6,900 individuals finding employment in the past month.
Although 3,000 people returned or entered the labor force, more than 22,000 individuals who dropped out of the labor force in April are still not accounted for. In April 2014, EDD reported the largest month-over drop in San Diego labor force participation since 1990, with 25,000 people leaving the labor force. (See last month’s employment report for details on the declining labor force.)
The industry with the greatest growth between April 2014 and May 2014 was leisure and hospitality with a month-over gain of 3,900 jobs. Accommodation and food services gained 3,200 jobs, while arts, entertainment and recreation added 700 jobs. With an influx of visitors expected to visit San Diego this summer, there is a likely chance that many of these jobs may be seasonal and will not provide year-long employment.
Construction reported the second highest month-over employment gain, with 1,000 jobs added from April 2014 to May 2014 and year-over employment gain with 5,100 jobs added from May 2013 to May 2014.
Analyzing construction jobs from 2004 to present, construction dropped significantly in the recession, but has gradually increased since 2011 and is close to returning to pre-2009 numbers.
As indicated by an article in the U-T San Diego, economists like to see gains in construction employment because they drive economic development. Homeowners generally purchase appliances and supplies for home improvements, which further stimulates the economy and creates additional jobs in retail(1).
1: Horn Jonathan. “SD unemployment drops to 6 percent.” U-T San Diego. 16 May 2014.