Changes in the local economy impact every San Diegan, and it can have a large effect on what happens at the San Diego County Treasurer-Tax Collector’s Office (TTC). Here are some of the biggest economic trends we at the TTC tracked through the second quarter of 2016. San Diego County’s unemployment rate climbed back up to 5.1 percent in June for the first time since October 2015 and remained below that of Los Angeles (5.2 percent), Riverside (6.7 percent) and California (5.7 percent), but above the national rate of 4.9 percent. The rate declined a total of 0.1 percent year over year as local nonfarm payrolls grew by 37,600 workers, or 2.7 percent. The private sector drove employment growth in June, accounting for 31,300 jobs. The leisure and hospitality industry was the largest driver of regional employment growth, adding 7,800 jobs since June 2015, a 4.2 percent increase.
Professional, scientific and technical services (PST), a subset of professional and business services (PBS) and strongly associated with the region’s innovation economy, accounted for over 11.5 percent of private sector growth, adding 1,000 jobs since May.
Other industries with year-over-year growth was professional and business services (+7,000 jobs), education and health services (+7,000 jobs), government (+6,000 jobs), trade, transportation and utilities (+3,500 jobs), financial activities (+2,200 jobs), manufacturing (+1,000 jobs) and other services (+700 jobs).
San Diego continues to gain recognition as an attractive place for business. The Worth Group announced that San Diego has been named as a 2016 “Worth Destination.” Featured in the June/July issue of Worth magazine, San Diego is among 15 cities lauded for civic leadership, quality of life, business climate, sustainability, entrepreneurial community, cultural offerings and urban innovation.
“San Diego has long been famous for its incredible natural beauty and beautiful weather,” says Richard Bradley, Worth’s editor in chief and chief content officer. “But thanks to its close and mutually beneficial relationship with Mexico, its status as a global hub with a particular emphasis on Asia, and its world-class scientific community, San Diego is also an economic powerhouse.”
The University of San Diego’s Index of Leading Economic Indicators (LEI), fell 0.2 percent in June to 140. After hitting its highest level in almost 10 years in April, the USD Index fell for the second straight month in June. Economists usually look for three consecutive changes in a leading index to signal a potential turning point in an economy. For now, the outlook remains for solid growth in the local economy through the end of 2016.
San Diego County’s median home price in June was $495,000, up 4 percent from year ago levels but below the pre-recession peak of $517,500 hit on November 2005. The County’s median price is still lower than other parts of Southern California. In June, the median was $530,000 in Los Angeles County, $657,500 in Orange County, and $550,000 in Ventura County. Dan McAllister is the San Diego County Treasurer-Tax Collector.