News Summary
San Diego County’s unemployment rate dropped to 5% in August from 5.2% in July, indicating a hopeful trend despite being above the national average. Job growth continued with an addition of 3,000 jobs, largely in education and tourism. However, the professional and business services sector faced losses. The City Council’s recent move to increase minimum wages for tourism workers to $25 per hour aims to bolster support for this key sector of the economy. Despite ongoing challenges, job demand remains notably high in retail and healthcare.
San Diego County’s unemployment rate has shown a positive trend, dropping to 5% in August from a revised 5.2% in July. This decrease is a hopeful sign, although it remains higher than the nationwide average of 4.5%. In contrast, the unemployment rate in California stands at 5.8%, indicating that San Diego’s rate is relatively lower than the state average.
In August, approximately 3,000 jobs were added in the county, a boost attributed primarily to educational hiring as teachers returned to classrooms. Additionally, the tourism sector showed some vitality by adding 1,100 positions. However, this positive news is tempered by notable job losses in other sectors. For instance, the professional and business services sector saw a decrease of 1,500 jobs in August, continuing a trend of job losses in this area. Other sectors that experienced declines included financial activities (down by 500), manufacturing (down by 300), and construction (down by 300).
According to San Diego economist Ray Major, the overall weakening of the economy may lead employers to be hesitant in their hiring practices, particularly due to uncertainties surrounding President Trump’s tariffs and changes made by the Federal Reserve related to interest rates. Despite the current challenges, the labor force in San Diego County consisted of 1.68 million workers in July, reflecting a 1.7% increase compared to the previous year.
When considering seasonal factors, the unemployment rate in San Diego County adjusts to 4.6%, while the U.S. average is 4.3% and California’s average stands at 5.5%. Significant annual job growth was observed in the private education and health services sector, which added 12,500 jobs, and government jobs also increased by 7,400, primarily in education. The leisure and hospitality sector contributed as well, adding 1,500 positions.
In a recent development, the San Diego City Council passed a new ordinance that will increase minimum wages for many tourism workers to $25 an hour over the next four years. This move aims to provide better financial support for workers in the tourism sector, which is vital to the area’s economy.
Looking at the past year, there have been job losses in six sectors, with the professional and business services sector losing 7,000 jobs, followed by manufacturing (down 2,800), and financial activities (down 2,100). Interestingly, the role with the highest demand in July was for retail salespersons, with 1,648 job ads, followed by registered nurses at 1,371 ads, and first-line supervisors of retail sales with 917 ads. Major employers looking for candidates included UC San Diego, Scripps Health, Sharp Healthcare, General Atomics, Starbucks, and Qualcomm.
Despite the overall decrease in unemployment, San Diego’s figures are among the highest in California, especially when compared to Los Angeles County, which stands at 6.3%. In contrast, several counties such as Orange, San Francisco, Santa Clara, and Santa Cruz report lower unemployment rates. This variance indicates that while San Diego is making strides in employment, challenges remain that could impact future job growth and economic stability.
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Additional Resources
- San Diego Union Tribune
- Google Search: San Diego Economy Unemployment
- Times of San Diego
- Encyclopedia Britannica: Unemployment Rates
- Fox 5 San Diego
- Google News: San Diego Unemployment News
- Express News
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, 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 the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
