Job growth speeds up in San Diego

San Diego County enjoyed widespread job growth in March, as the unemployment rate ticked down to 6.9 percent, the state reported Friday.

Last month, 11 of the 12 industries tracked by the Employment Development Department increased their number of employees, from tourism to construction to education and health services. In all, employers in San Diego County added 12,700 people to nonfarm payrolls in March, bringing the unemployment rate down from 7 percent in February.

“San Diego’s economy went out like a lion in March, showing solid momentum in the job market,” said Lynn Reaser, chief economist at Point Loma Nazarene University.

Over the past 12 months, employers have added 32,600 people to payrolls, for 2.5 percent annual growth. That outpaces Orange County, Los Angeles, the state and the nation.

The annual job gains were led by the high-paying professional, scientific and technical services sector, which has added 6,700 jobs since March 2013. The construction field, which pays middle class wages, is up 9.9 percent in the last 12 months to 64,600 workers. Construction jobs bode well for the rest of the economy, said Esmael Adibi, economist at Chapman University.

“I cannot think of any other industry with as big of a multiplier than construction, and especially when it comes to residential,” he said. “You just go into the house and there’s a whole bunch of things you have to do. It’s not a done deal.”

Despite the widespread growth, the jobless rate remains elevated at 6.9 percent. But that could be a product of more optimism among job seekers.

“The unemployment rate looks like it’s high but that’s because more and more people are entering the labor force,” said Alan Gin, economist at the University of San Diego. “Some of those probably were discouraged previously. Now things are looking better so they’re coming back to the workforce.”

San Diego’s job outlook got a huge boost last month, when the state revised 2013 data to show an extra 30,000 jobs. That was a far cry from what was reported throughout most of last year.

“It looked like we were in a big slump but then when they revised the numbers everything turned out OK again,” Gin said.

In March, the labor force had a record 1.6 million people now working or looking for work. In the last year, the number of people unemployed in the county has fallen by nearly 11 percent to 110,700. A year earlier, the unemployment rate was 7.8 percent.

Looking forward, Gin said he expects between 30,000 and 35,000 payroll jobs to be added in 2014, which would be similar to the 32,800 added last year. He said he sees the unemployment rate falling below 6 percent by the end of the year.

Reaser said the growth would have widespread impact.

“San Diego’s positive signs in the job market could be a sign of improving confidence on the part of the region’s businesses and will be an important driver of consumer spending, homebuying, and other vital aspects of the economy’s return to full health,” she said.

Still, there’s room to grow. Earlier this week, the University of California, Los Angeles released a forecast that was bullish on San Diego’s economic strength, but said there would be tightness in the labor market until 2016, when the jobless rate is expected to touch 5 percent.

Adjusted for seasonality, such as tourism hiring for spring break, county employers added 7,100 jobs in March. Gin’s adjustment to the unemployment rate kept it the same, at 6.9 percent, while Reaser had it down to 6.8 percent.

Statewide, the unemployment rate held steady at a seasonally adjusted 8.1 percent in March while nearly 12,000 jobs were added. California’s jobless rate in March was down from 9.2 percent a year ago but remains above the national rate of 6.7 percent.

The 11,800 nonfarm payroll jobs created in March means the state has gained 1.2 million jobs since the economic recovery began in 2010. The information sector led the way with 7,000 new jobs.

Other sectors showing gains were: mining and logging; construction; trade, transportation and utilities; professional and business services; educational and health services; and government.

More than 1.5 million Californians remain unemployed.

The Associated Press contributed to this report.