McKenna Aiello | Downtown News
June saw a slight increase in the unemployment rate in San Diego County, according to a report released by California’s Employment Development Department (EDD). Coming in at 6.1 percent, this number is up from 5.8 percent during the month of May, which was also the lowest unemployment mark since 2008.
San Diego’s unemployment rate has witnessed a pretty streamlined decline over the past couple of years, but months like June are a testament to its bumps along the way. A July 2014 report released by the San Diego Regional Economic Development Corporation (EDC) says this increase is natural, and nothing to be alarmed about.
“Historically, a rise in the unemployment rate is common in June, as many students and other seasonal workers begin looking for summer employment, thus driving up the labor force …” the report stated. “This trend is expected to continue throughout the summer, but is typical both historically and across the country.”
Of the 1,590,800 San Diegans in the labor force, 96,500 were unemployed in June. Though with 3,200 people entering the labor force from May to June, it should come as no surprise that the total unemployment increased by 3,900, much of which was likely comprised of those newly entering the labor force.
Although the county suffered a small rise in the unemployment rate, the EDC and EDD point out changes in many sectors of San Diego’s employment power that saw a positive increase.
From May to June leading sectors in employment growth included arts, entertainment and recreation – up 1,700; professional, scientific and technical services – up 1,400; and trade, transportation and utilities – up 1,200, according to the EDD report released on July 18.
And like most San Diego summers, the tourism industry accounted for more than 34 percent of the region’s private employment growth, adding 3,000 jobs between May and June and 5,700 jobs within the past year.
While San Diego’s innovation sector of job opportunities, comprised of professional, scientific and technical services, added 1,400 jobs since May and 6,800 jobs since June 2013, Microsoft’s recent announcement of a wide-scale employee cut back could jeopardize this faction in San Diego.
Earlier this month the computer software company announced that 18,000 employees would lose their jobs over the next year. The layoffs will include both factory and professional jobs, but will take the largest stab at phone company Nokia, which Microsoft purchased less than a year ago for $7.2 billion.
Of the 12,500 layoffs expected to come from Nokia, about 378 workers will be let go from its 198,734-square foot San Diego-based Nokia facility located at 16620 West Bernardo Dr., according to a Microsoft official.
“While we plan to reduce the engineering in Beijing and San Diego, both sites will continue to have supporting roles, including affordable devices in Beijing and supporting specific US requirements in San Diego,” Microsoft Executive Vice President Stephen Elop told employees in an email.
For now, the actual impact of Microsoft’s cutbacks on San Diego’s labor force is unclear, but through the rest of summer, “America’s Finest City” can expect a steady decline in unemployment as the local economy adjusts to market changes caused by increased tourism and recreational activities.
