San Diego Overview

The San Diego job market has benefited from the area’s diverse economy and desirable location, which helped the region emerge from the recession faster than other places in California. The city’s Pacific Ocean location and warm weather support international trade, tourism and a strong US Navy presence. While job conditions should improve for San Diego’s 1.6 million workers, the city remains vulnerable to government cutbacks.

San Diego Job Opportunities

The US Navy employs more than 50,000 in San Diego and supports numerous military contractors. Other economic drivers are international trade, electronics and telecommunications, software and biotechnology. The University of California, San Diego helps support the area’s more than 400 biotech companies. Tourism is also important, with the city’s zoo, convention center and other attractions drawing millions of visitors a year.

Employment in San Diego is driven by the government sector, followed by professional/business services and trade, transportation and utilities. Government job opportunities have been falling for nearly a year. Industries that account for a lower share of jobs in San Diego -- including manufacturing, financial activities and information -- have also been shedding jobs. Professional/business services, education/health services, and leisure and hospitality have recently experienced solid job expansion.

San Diego Employment Trends

San Diego’s employment conditions weakened in mid-2011, but have improved since September 2011. The city’s unemployment rate, which peaked at 10.9 percent in January and July 2010, was below 9 percent by April 2012. Payroll employment, which fell for two-and a-half years before improving then worsening in mid-2011, has been expanding since September 2011. Online hiring has shown gains over the past year, but is still below prerecession levels.

Moody’s Analytics forecasts a 1.9 percent increase in San Diego jobs between Q2 2012 and Q2 2013, more than the 1.3 percent growth expected in the US job supply.