To stay competitive in today’s job market, businesses must stay informed about and adapt to current labor market trends. Understanding and interpreting labor market information provides valuable insights that empower employers to make strategic decisions and effectively navigate challenges in hiring, recruitment and employee retention.
Below, we explore the recruitment and retention challenges faced by employers in San Diego County and share how they can leverage labor market data to remain in-demand in a competitive labor market.
Understanding Labor Market Trends in San Diego
San Diego County’s economy mirrors the national economy, with a labor force averaging 1.59–1.6 million individuals and an unemployment rate of 3.5% as of May 2023. These figures indicate a tight labor market and healthy job growth, particularly in industries like leisure and hospitality, trade and transportation, healthcare, and construction. However, employers in these industries may encounter recruitment issues if they do not offer competitive wages and benefits.
Common Recruitment and Retention Challenges
Hiring, recruitment and employee retention pose challenges due to the high costs of hiring new employees, changes in talent pools and other economic factors. A Gallup survey found that high turnover and new hires can cost the average 100-person company between $660,000 to $2.6 million per year.
San Diego’s high cost of living and inflation can exacerbate the difficulty of hiring in metropolitan regions. Additionally, the changing labor market affects the availability of qualified candidates, making it crucial for businesses to adapt their recruitment and retention strategies and ensure they are providing competitive compensation packages. Failure to offer the right compensation can result in businesses falling behind their competitors in attracting top talent. Businesses can leverage labor market data such as the number of potential employees in their region, worker commute patterns, and occupational wage benchmarks to understand the climate and develop enhanced recruitment strategies with the support of our Business Engagement team.
Employee Upskilling and Retention
Investing in current employees through incumbent worker training and upskilling opportunities increases employee retention and enhances employer attractiveness. The World Economic Forum’s Future of Jobs Report states that half of all employees will need upskilling by 2025 due to rapid technological expansion and automation. Providing clear advancement pathways and training opportunities for current employees not only reduces turnover costs, but also appeals to modern workers who value skill development opportunities.
According to a Gallup-Amazon research study, 48% of U.S. workers would be willing to switch jobs if offered skills training, and 65% of employees believe employer-provided upskilling is very important when evaluating a new job opportunity. We can help offset the cost of training current employees by providing training funds tailored to meet your business’s unique needs.
The Workforce Partnership Meets Your Talent Needs
The San Diego Workforce Partnership’s business engagement team offers holistic solutions to address employee recruitment and retention challenges, helping businesses become employers-of-choice. We provide valuable labor market information and industry-specific employment data, enabling businesses to create competitive compensation packages and effective hiring strategies to increase employee retention over time.
Getting Connected to Resources
Looking for labor market information in a specific industry or occupation? Need funding for training? Interested in becoming an employer of choice? Contact our business engagement team today at (619) 404-HIRE (4473) or email business@workforce.org. We’ll help you access the resources you need to optimize your hiring, recruitment and retention efforts.