San Diego County Unemployment Rate Declines Slightly

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News Summary

San Diego County’s unemployment rate fell to 5% in August, down from 5.2% in July. Despite the decrease, the rate is still higher than both the national average and California’s average. Job growth was observed in the education and tourism sectors, while losses were recorded in professional services, financial activities, and manufacturing. The city’s labor force showed slight growth year-over-year, although uncertainties around tariffs and interest rates may influence future hiring decisions.

San Diego County’s unemployment rate fell to 5% in August, a slight decrease from 5.2% in July. Although this decline indicates a positive trend, San Diego’s unemployment rate is still higher than the nationwide average of 4.5% and California’s average of 5.8% for the same month. This ongoing economic situation raises concerns and highlights some job growth within specific sectors.

In August alone, the education sector saw the addition of approximately 3,000 jobs in both private and public schools. Moreover, tourism-related employment increased by 1,100 positions, contributing to the local economy. However, the professional and business services sector faced significant setbacks, shedding 1,500 jobs. The financial activities, manufacturing, and construction sectors each experienced job losses ranging from 300 to 500 positions during the same period.

Despite these mixed results, San Diego’s labor force increased to a total of 1.68 million in July, reflecting a year-over-year growth rate of 1.7%. This figure is only 3,800 jobs short of the peak of 1.69 million reached in March. Seasonal adjustments estimate that the unemployment rate currently stands at around 4.6%, compared to the U.S. average of 4.3% and California’s 5.5%. In the past year, the private education and health services sector added 12,500 jobs, while the government sector, primarily due to education-related employment, gained 7,400 positions.

In the leisure and hospitality sectors, there was also a positive trend, with the addition of 1,500 jobs. However, it is noteworthy that year-over-year data reveals significant job losses in several key sectors. The professional and business services sector alone lost 7,000 jobs, while other sectors experienced declines as well: manufacturing saw a loss of 2,800 jobs, financial activities dropped by 2,100 jobs, and the information sector lost 1,100 jobs. Moreover, the retail sector had the most job openings in July, with a total of 1,648 job postings, closely followed by registered nurses, who had 1,371 ads listed.

Focusing on the job openings, prominent employers in the region, such as UC San Diego, Scripps Health, and General Atomics, were advertising the most positions. It is important to note that while local government jobs increased by 6,000, this gain was offset by the loss of 3,700 state government jobs, illustrating mixed results within the government sector.

The San Diego City Council recently passed an ordinance to raise minimum wages for tourism workers to $25 an hour over four years, starting next summer, which may further impact the local job market. Despite the current economic fluctuations, the total nonfarm employment in San Diego County saw a slight increase from 1,558,200 to 1,560,200 jobs, representing a gain of 2,000 jobs from July to August. Meanwhile, agricultural employment remained unchanged during this period.

Concerns remain regarding the economic landscape, with San Diego economist Ray Major highlighting that potential hiring may be hesitant due to uncertainties surrounding President Trump’s tariffs and changes to interest rates. As San Diego County continues to navigate these challenges, the unemployment rate and job market dynamics remain focal points in the coming months.

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Additional Resources

STAFF HERE SAN DIEGO WRITER
Author: STAFF HERE SAN DIEGO WRITER

SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.

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