Drop in Consumer Confidence Fuels Slight Index Dip
The San Diego labor market received very little good news in the month of October. Consumer confidence fell nearly 40% for the Pacific Region between September and October. This was its lowest point in over 13 months, helping to stall an already sluggish economy. Even though the regional economy remained flat and unemployment fell below 10% for the first time in four months, the Workforce Index reflects the negative impact generated by poor consumer confidence.
“Consumers are one of our primary economic drivers,” remarked Gary Moss, Labor Market Intelligence Specialist for the San Diego Workforce Partnership. “Employers are still skittish and more bad news doesn’t help the hiring picture,” Moss added.
The decrease to 84.92 in September from August’s 85.15 (adjusted) was buffered by slight increases in the local economic index, a drop in the unemployment rate, and a slight increase in temporary employment hiring. In addition to the dramatic consumer confidence decrease, the region saw a net reduction of 3,600 for the month of September. However, for the year the region shows an increase of 17,300 jobs and a 4% in-crease in the Workforce Index over the same time last year.
The Index is a compilation of a range of economic indicators that provide a month-to-month record of the status of the workforce in San Diego County. A reading of 100 indicates “full employment” where the labor market is in equilibrium. A reading greater than 100 might indicate a shortage of workers or an overheated economy. A reading of less than 100 would indicate a slowdown in the local economy and might reflect a shortage of employment opportunities.
For more information on the Workforce Index please contact Research Director Chuck Flacks chuckflacksworkforce [dot] org.