Economic Index On The Rise In San Diego

A report was released by the by the University of San Diego’s Burnham-Moores Center for Real Estate stating the job market in San Diego County is strengthening which was a leading reader for a rise in economic indicators for the thirteen month in a row. This indicator is a sign that San Diego County will keep growing moderately through the rest of the year.

The major three of the six components found in the index did head downward in May, which is believed to be due to a moderate fall in consumer confidence, explained USD economist Alan Gin, who was instrumental in the compilation of the report. However, he was excited by the job growth.

Alan Gin stated, “Employment has now been up month-to-month for three straight months.” In addition, went on to say, “Revised data for March show 6,600 jobs added to the local economy, the most in over two years, and the 1,600 jobs added in April marked the first time since 2006 where jobs increased in an April compared to March.”

The federal government hired temporary workers to aid in conducting the 2010 census, which could have been the top reason for the job growth, however, other industries added to these figures. These include employment services added 600, leisure and hospitality added 1,100 jobs, and the construction industry added 500. The construction industry saw more jobs available due to federal infrastructure projects as well as higher demand in home building.

Alan Gin predicted the growth for San Diego County using an index of economic indicators compiled by economist Adrian Felissig at California State University Fullerton for Southern California. The compiled data indicated a growth for the next three to six months in San Diego, as stated by Fleissig.

“Southern California is still lagging the United States in terms of economic growth, although San Diego, Orange County and Los Angeles are definitely ahead of San Bernardino and Riverside,” Fleissig said.

The components used in the index were help wanted ads which were local job postings found on the internet, stock prices of companies in San Diego County, home building which rose for the fifth month in a row, unemployment claims were down if only from 11% in March to 10.4% in April, consumer confidence was down in April, an the national economy which did turn downward for the first time in about a year.

Even though consumer confidence was down in April, Gin stated, “It will probably take a significant improvement in the labor market, both in terms of job growth and the unemployment rate, before consumer confidence starts to rebound again.”

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