Despite a stable labor force, shifts in key industries and broader economic pressures are driving up joblessness in the region.
San Diego’s unemployment rate has been fluctuating recently, reaching 4.3% in December 2024, then rising to 4.6% in October 2024. While these numbers might seem relatively low, they reveal underlying challenges in the region’s job market.
The labor force in the city has remained fairly stable, with around 1.62 million people either employed or actively looking for work in recent months. However, the number of unemployed residents rose to 81,400 in August 2024 before dropping to 69,800 by December. This increase in unemployment, despite the overall stability of the workforce, highlights some deeper trends worth noting.
Some sectors in San Diego are performing better than others. The leisure and hospitality industry has seen a welcome boost, with a 1.4% rise in employment over the past year. On the flip side, industries like manufacturing and construction have faced losses. Manufacturing jobs fell by 2.8%, and construction saw modest declines as well. The trade, transportation, and utilities sector remained relatively stable, growing just 0.2%. Meanwhile, professional and business services saw a drop of 2.2%, suggesting some struggles in high-skilled job markets.
Several broader economic factors are likely influencing these trends. Inflation and ongoing global supply chain disruptions have put additional strain on local businesses. The overall shift in San Diego’s economy—from traditional industries like manufacturing to emerging ones like technology—means the job market is evolving, and workers must adapt to new opportunities and sectors.
To address these shifts, local leaders and businesses need to focus on workforce retraining and supporting the growth of emerging industries. By doing so, San Diego can help ensure a stable job market moving forward and provide workers with the skills they need to thrive in a changing economy.
