The unemployment rate in San Diego County continues to drop, with many new jobs in retail. San Diego County’s unemployment rate was 3.2 percent in June.

The county’s jobless rate is lower than California, at 4.2 percent, and the national average of 3.6 percent.

Tourism continued to drive job growth in San Diego, rebounding from COVID-19 shutdowns, with 4,600 jobs added month-to-month. In the last 12 months, the sector — which includes work at hotels, restaurants and casinos — has added 32,500 jobs.

Summer is a tricky time for the unemployment rate because a lot of jobs related to education temporarily end. When adjusted for seasonal swings, the unemployment rate is closer to 2.9 percent, said Daniel Enemark, senior economist at San Diego Workforce Partnership.

Another sector that had big growth from May to June was trade, transportation and utilities with 3,100. The industry is mainly retail jobs.

Other industries growing were government (mainly education) with 400 new jobs; educational and health services (nursing, social assistance) also with 400 jobs; and financial activities (real estate, insurance) with 200 new jobs.

Professional and business services lost 3,200 jobs with positions in waste management and employment services. Construction was down by 900 jobs.

San Diego County’s civilian labor force has still not recovered fully from the pandemic, but it is improving. The labor force, adults who either have a job or are actively looking for one, was 1.6 million people in February 2020. It is now around 1.57 million, a reduction of 32,100 people. There were some points during the pandemic when the labor force had shrunk by more than 60,000 people.

Analysts have pointed to a variety of factors why people left the workforce: Changing priorities during the pandemic (such as just one parent working instead of both), an increase in workers taking early retirement and people leaving high-cost areas, such as San Diego.

Taner Osman, research manager at Beacon Economics, said the state’s labor force is still down 172,400 workers pre-pandemic.

“California’s tight labor market has not eased up,” he said, “and will continue to act as a constraint on job growth.”

On an annual basis, tourism was the biggest gainer with its 32,500 jobs. It was followed by professional and business services (legal, scientific, waste management, architectural) with 15,600 jobs; government with 9,500 jobs; Other services (laundry, maintenance, religious) with 6,500 jobs and education and health services with 3,000 jobs.

The unemployment rate has been a bright spot among inflation woes, with rates plummeting throughout the nation. President Biden has pointed to the job picture as a sign the economy is doing well.

“Despite the global challenges we face, America is on the move,” he wrote in a statement earlier this month when national numbers were released. “Unemployment benefits have reached historic lows.”

However, the unemployment rate alone is not enough for some economists when considering the economy as a whole. Bank of America recently adjusted its economic forecast to say the U.S. could soon enter a “mild recession” because of a sharp drop in spending tied to rising prices.

Source: SDuniontribune by Phillip Molnar