News Summary
San Diego County’s unemployment rate rose to 5.2% in July, marking the highest level since September 2021. This increase, attributed to seasonal job losses and ongoing economic shifts, reflects significant job reductions, particularly in professional services and construction sectors. Despite some job gains in education and health services, the overall labor market in San Diego continues to face challenges, with indications of potential out-migration contributing to the dynamic landscape of employment in the region.
San Diego County’s unemployment rate climbed to 5.2% in July, an increase from 4.9% in June. This marks the highest unemployment rate for the county since September 2021 and is slightly above the 4.8% recorded in July of last year. As the rate continues to rise, it reflects seasonal job losses and ongoing economic adjustments within various sectors.
The nationwide unemployment rate also saw a rise to 4.6% in July, while California’s unemployment rate increased to 6.1%. In San Diego, 17,200 jobs were lost primarily due to seasonal factors associated with schools being out for summer break. Additional job losses were felt in the construction sector with 400 positions lost and 900 jobs cut in professional and business services.
When accounting for seasonal variations, the unemployment figure for San Diego is closer to 4.8%. For national referencing, the U.S. average unemployment rate adjusted for seasonality currently stands at 4.2%, and California’s adjusted rate is 5.5%. This rising trend in unemployment in San Diego began in March and has accelerated in the following months of June and July.
Over the past year, the professional and business services sector in San Diego has seen a substantial decline, shedding 6,800 jobs mainly in tech and biotech industries. Economists have noted that the job market for STEM graduates is becoming more competitive, influenced by advancements in artificial intelligence that are reshaping software development roles.
The labor force in San Diego County was reported at 1.67 million in July, reflecting a 1% increase from the previous year, although there are signs suggesting potential out-migration as little change has been observed in the labor force size. Additionally, San Diego’s inflation rate has registered the highest in the nation at 4%, reaching its peak since 2023.
Underlying economic trends indicate a nationwide economic slowdown, which does not singularly affect San Diego. Increasing minimum wage regulations in California may be contributing to higher unemployment rates among young job seekers aged 16-19. Despite these challenges, the private education and health services sectors have shown resilience, adding 14,400 jobs across the year, which contributed positively to San Diego’s overall job gains.
Other sectors reporting job growth included government positions with 6,500 new jobs, services with 800 jobs, and leisure and hospitality, which gained 400 jobs. Conversely, significant job losses occurred in manufacturing (-3,800 jobs), financial activities (-2,000 jobs), construction (-1,300 jobs), and information services (-1,000 jobs).
In July, there were the most job openings reported for retail salespersons (1,579 ads), followed by registered nurses (1,490 ads) and computer occupations (896 ads). Prominent employers in San Diego with the highest number of job postings include UC San Diego, Sharp Healthcare, Qualcomm, Scripps Health, Starbucks, General Atomics, and Apple.
When compared to other counties in California, San Diego County’s unadjusted unemployment rate of 5.2% is relatively high. Unemployment rates across neighboring counties include 6.4% in Los Angeles, 4.8% in Orange, 4.4% in San Francisco, 4.8% in Santa Clara, 6.1% in Santa Cruz, and 6.5% in Riverside.
As San Diego grapples with these economic challenges, continued observation of job market patterns will be crucial to understanding the region’s recovery and growth trajectory.
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Additional Resources
- Fox 5 San Diego
- Wikipedia: Unemployment in the United States
- San Diego Union Tribune
- Google Search: San Diego County unemployment rate
- Times of San Diego
- Encyclopedia Britannica: Economy
- NBC San Diego
- Google News: California unemployment rate
- CoStar
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.
