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November 18, 2016

The San Diego Monthly Employment Report (September 2016 to October 2016) shows increases in the civilian unemployment rate, labor force and employment.

Labor market highlights for September 2016

The California Employment Development Department (EDD) reported a slight increase in San Diego’s unemployment rate from 4.7 percent in September to 4.8 percent in October, remaining below the year-ago estimate of 5.1 percent.

“Seasonal hiring is enthusiastically kicking in and employers are anxious to hire,” says Phil Blair, President and CEO of Manpower Staffing/San Diego. “People are jumping back into the job market and are confident there are opportunities for them. The interesting question is how the new administration will impact employment in the beginning of the year. Typically, the uncertainty keeps hiring flat through the first quarter.”

“Hiring trends reported for this month are consistent with previous years,” says Tina Ngo Bartel, Director of Business Programs and Research for the San Diego Workforce Partnership. “Between September and October, we typically see increases in Educational & Health Services and Government, while Leisure & Hospitality decreases. In previous years, this trend continues on until January.”

The 4.8 percent unemployment rate falls below the highest October unemployment rate (10.7 percent in 2010) but remains higher than the lowest October unemployment rate experienced in the region over the last 10 years (3.8 percent in 2006). 

San Diego & California unemployment rates
Civilian labor force & employment numbers

Government recorded the largest net month-over gain of 6,700 jobs, largely due to seasonal education gains as classes resumed after summer break; 6,400 of these jobs came from State and Local Government Education.1 Educational & Health Services experienced the second largest month-over gain with 2,400 additional jobs. Educational Services include colleges, universities and professional schools.

Three sectors reported month-over job losses, with Leisure & Hospitality experiencing the largest employment decline of 5,300 jobs due to the summer tourist season ending.2 Additionally, employment declined in Professional & Business Services by 400 jobs and in Manufacturing by 200 jobs.

San Diego County Year-Over Job Gains & Losses

Between October 2015 and October 2016, Educational & Health Services experienced the greatest year-over gain, adding 6,400 jobs to the region, with 87 percent of this growth from Health Care and Social Assistance (5,600 jobs). This was followed by Government (6,200 jobs) and Leisure & Hospitality (5,300 jobs). Manufacturing is the only sector that did not experience year-over growth, neither gaining nor losing jobs.

Despite month-over losses in three sectors, San Diego County continues to experience year-over gains in a majority of sectors. Additionally, San Diego’s unemployment rate remains lower than the California rate of 5.3 percent. 

1Employment Development Department (EDD)

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