San Diego Business Journal

Region’s Unemployment Rate Improves

By Mike Allen Monday, October 24, 2011

San Diego’s unemployment rate fell to 9.7 percent in September, down from a revised 10.2 percent in August and near the low point for 2011 in May, when it was 9.6 percent, according to an Oct. 20 report from the state Employment Development Department.

The regional jobless rate was below the unadjusted rate for California of 11.4 percent, but above the national rate of 8.8 percent for the same month.

The local drop was caused by a big decline in the number of people officially counted as unemployed. During September, the number of people receiving unemployment benefits decreased by 7,500 to 152,700. The rate is figured as a percentage of the area’s civilian labor force of more than 1.56 million.

In September, the area’s nonfarm employment declined by a net 3,600 jobs to bring the total nonfarm jobs to about 1.23 million. The bulk of the losses, some 6,500, came from hotels and restaurants laying off workers after the summer tourism season. Those losses were offset by a gain of 4,300 jobs in the government sector, mainly from teachers and staff returning to their school positions.

From September 2010, the region gained about 17,300 nonfarm jobs, or 1.4 percent. Farm jobs showed practically no change.

The sectors recording the largest year-over-year gains were leisure and hospitality, up 5,400 jobs; professional and business services, 5,200 jobs; educational and health services, 4,200 jobs; and trade, transportation and utilities, up 4,100 jobs.

Construction led all categories in job losses, with 1,500 during the 12 months.