The unemployment rate in San Diego has ticked upwards, reaching 4.7% in February, according to Patch. This marks a rise from the revised January rate of 4.3% and stands notably higher than the 3.7% reported this time last year. Statewide figures aren't faring much better, with the California unemployment rate increasing to 5.2% in January from December's 5.1%, per data released by the state Employment Development Department (EDD).
While San Diego's job market has faced setbacks, private education, and health services in California,, seem to defy the gloomy labor trend by leading the industry sectors and adding 16,300 jobs. Slightly less depressing, San Diego's nonfarm employment did increase by 20,500 jobs, or 1.3%, from January 2023 to January 2024, providing a silver lining to a clouded economic forecast.
Gauging job losses in San Diego County, the largest employment drop was reported in trade, transportation, and utilities with a 7,300 job reduction. According to the Patch report, retail trade took a significant hit, accounting for three-quarters of these losses by shedding off 5,500 positions. Leisure and hospitality didn't escape the downturn, with a decline of 6,300 jobs — including 5,200 in accommodation and food services specifically — and arts, entertainment, and recreation contracting by 1,100 jobs.
Conversely, California's labor market has seen more of a mixed bag. The state added 58,100 nonfarm payroll jobs in January, capturing 16.5% of the nation's total job gains for the month, as reported by the EDD. However, manufacturing was the only sector that backslid, losing 800 jobs, attributed to higher than average losses in specific sectors like Semiconductor and Other Electronic Component Manufacturing.
Shifting to the workforce side of the equation, the number of employed Californians dropped by 8,000 persons from December, while unemployment grew by 23,300 during the same period. The number of people certifying for Unemployment Insurance benefits also heightened in January, underlining the ongoing challenges for workers across the state.
