Friday, April 26, 2013

Labor trend first quarter, San Francisco Bay Area

Beacon Economics, 4/25/13, The Regional Outlook, San Francisco.  "Employment Trendsetting Continues In SF"

Labor trend:  employment up, unemployment down 
"The labor market in the San Francisco metropolitan division (MD) continues to be the state’s job recovery trendsetter. Total nonfarm employment in the San Francisco MD is actually higher now than it was prior to the Great Recession, making it the only large job center in California to accomplish such a feat. Arguably, the area is no longer in recovery mode but simply in an economic expansion.

During the last quarter of 2012, more than 9,000 workers were added to nonfarm payrolls in the San Francisco MD, representing a 1% increase. This increase is one of the strongest among large economic regions. Over the past 12 months (February 2012 to February 2013) total nonfarm employment increased by 3.5%, or more than 34,000 jobs. Solid employment growth since the end of the Great Recession is one of the reasons why the San Francisco MD boasts one of the lowest unemployment rates in the state (6%).

Over the past year, all private industry sectors in San Francisco added to their payrolls, although the Government sector decreased its workforce by a few hundred positions. The Professional and Business Services sector continues to be one of the leading job creators, increasing its payrolls by 6.2%, or more than 13,600 jobs during the past 12 months. Information Technology also posted a solid gain of 5.8%, or 2,600 jobs. Another good sign for the local economy is the increase in Construction employment: Compared to the same period last year, the Construction sector grew by 7%, or 2,400 jobs. This increase in jobs reflects robust activity in the real estate markets.

Over the longer term, Beacon Economics expects nonfarm employment in the San Francisco MD to grow at a slower pace of around 1.5% per year over the next several years."

Posted by Kathy Meeh

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