San Diego added office jobs this past year though still off from the peak in 2022
San Diego’s unemployment rate fell below 4% in May for the first time in two years, according to the latest jobs report released by the Bureau of Labor Statistics. At 3.9%, it was the lowest local rate since May 2024, when it hit 3.6%; a year ago, it was 4.1%. The current rate also is below California’s statewide rate of 4.7%.
In May, San Diego employers added 4,300 people to nonfarm payrolls. Leisure and hospitality was the top employment sector, adding 3,600 jobs, 75% of which were in accommodation and food services.
This hiring came on the doorstep of San Diego tourism season as businesses prepared for the flood of summer tourists. Hotel occupancy generally rises heading into the summer. Last year, occupancy peaked at 81.5% in July, with this July forecast to exceed 83%.
The construction industry added 900 jobs in May, followed by 600 government hires, 300 in financial activities and 200 in manufacturing.
Although financial activities added 300 jobs in May, 300 jobs were shed in professional and business services, while hiring in the information sector was flat. Together, these constitute the office-using sectors, which had seen some growth in the early stages of the year.
In the past 12 months, nonfarm employers in San Diego have added 13,400 people to payrolls, representing 0.9% annual growth. For comparison, employment fell 0.1% in Los Angeles during the past year, and Orange County employment fell by 0.4%.
Office-using employment increased by 1,600 jobs in the past 12 months. Private education and health services added the most jobs in the past year after adding 15,400 to payrolls. Healthcare and social assistance accounted for 16,000 jobs, while private education payrolls dipped by 600. Leisure and hospitality added 7,100 to payrolls.
Construction led losses since last May. The sector reduced its head count by 2,200. Specialty trade contractors were responsible for 1,700 of those losses.
Part of the drop in the unemployment rate can be tied to the decline in the labor force. San Diego’s civilian labor force fell 1% year over year, or 17,400.
