ECONOMY: San Diego County's jobless rate soars

By CHRIS BAGLEY - Staff Writer | Friday, November 21, 2008 9:51 PM PST

Numbers Falling

Several industries and government agencies in San Diego County have slashed jobs since October 2007, while many others have expanded more weakly than in previous years.

Sector Employment Growth since 10/07

Manufacturing 101,400 -0.4%

Retail 144,800 -2.8%

Construction 79,600 -6.8%

Health care 109,500 1.2%

Leisure 162,600 0.7%

Public schools 73,400 -3.2%

Source: California EDD

San Diego County's jobless rate rose sharply to 6.8 percent last month, the highest rate in 13 years, a state agency reported Friday.

October's rate represented an uncommonly large jump, from an upwardly revised 6.5 percent in September and from 4.8 percent in October 2007, according to the California Employment Development Department.

The statewide unemployment rate jumped even more dramatically, to 8.2 percent from 7.7 percent in September and 5.7 percent in October 2007.

Employment data showed several key sectors of the region's economy contracting alongside deteriorating credit markets.

Numerous consumer-focused companies have reported customers being unable to finance purchases. Retailers of various stripes have trimmed payrolls during a season in which they normally expand. Department stores began hiring for the holiday season, but at a pace far slower than in previous years.

"There won't be a lot of 'ramping-up' this year," said George Whalin, a veteran retail analyst in Carlsbad.

California's jobless rates have risen alongside those of the nation and 46 states. Falling home prices and a steady drumbeat of scary financial news have kept many consumers from spending.

Many others were willing to spend, but weren't immediately able to pay in full. Credit frequently bridged that gap in recent years, but lenders have tightened consumer financing considerably since summer, according to car dealers, cosmetic surgeons and a range of other North County businesses.

Economists have blamed excessive borrowing for the housing crash and a range of other ills, and several have said that consumers' newfound sobriety will eventually leave the national and regional economies in a healthier state.

But in the meantime, the sudden pullback has shocked the economy, because consumer spending has come to account for some 70 percent of all economic activity, economists have said.

In North County, the construction sector slashed more jobs than is common in October, a sign of continuing fallout from the region's imploded housing bubble. Construction companies that focused on government contracts, a generally stable source of income, have also cut back this year, though less dramatically.

Friday's report showed cuts even in several industries whose growth had been helping to offset losses in construction, real estate and retail. The leisure sector, which includes casinos, golf courses, restaurants and hotels, cut 8,300 jobs in September and October, more than any other two-month period since 1997.

Managers at two North County golf courses said they and others had been cutting hours for some employees and laying off others. Callaway Golf said it would lay off 164 employees in September and October after weaker sales in the spring, though a spokeswoman for the Carlsbad manufacturer said at the time that declining sales were not the reason.

The manufacturing sector as a whole has been shrinking steadily for a decade, both in San Diego County and nationally. State data showed some local manufacturers expanding earlier this year, when a weak U.S. dollar made their products less expensive for overseas buyers; but job losses returned last month.

Christa Spinoza, who manages the regional office of the Adecco employment agency in Carlsbad, said an Adecco recruitment event last week had drawn an especially large number of people who had recently been laid off from manufacturers.

"Manufacturing," Spinoza said, "is typically super-busy in the fourth quarter, and this year it's not busy at all."

Public schools hired strongly in October, which is common for fall months, but overall, the government sector shrank slightly from last year. October marked the first time that has been true since 1994.

Notably, most categories of employers in San Diego County added jobs last month ---- but at rates that were weaker than in previous years, failing to keep up with population growth. A total of 11,800 jobs have disappeared from the region's private sector since October 2007, representing a contraction of 1.1 percent.

The county's joblessness is at its highest level since July 1995, when the region was recovering from massive cuts in the defense and aerospace industries, and on military bases. San Diego County's unemployment rate peaked at 8.6 percent in July 1993.

The state listed 107,700 people in San Diego County as unemployed last month, the largest number ever.

Contact staff writer Chris Bagley at (760) 740-5444 or cbagley@nctimes.com. Bagley blogs about local economic trends at http://bizblogs.nctimes.com.

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Pre-Registration Comments[-]Go to Top

jvc wrote on Nov 21, 2008 12:34 PM:This is not important! Gay marriage is!

Skip wrote on Nov 21, 2008 12:36 PM:Gee I hope it is not a big deal when Caucasian Guy guys start hanging out on the street corners looking for work as laborers.

jvc wrote on Nov 21, 2008 1:51 PM:Start selling your apples and pencils on
street corners like everyone else!

History now wrote on Nov 21, 2008 1:52 PM:I would love to be in a college class studying all of this now. How many years have gone by with so many of you getting yours with the trickle down affect? How many of you now don't care and simply leave sarcastic comments for those that are still working? One thing Escondido does have are a number of senior folk who really don't care about those still trying to make it. Read the comments. You can see the ones who have theirs and don't care about the others. The sad, sad thing is that a number of these people belong to the religious organizations in Escondido. They quietly work within the politics but really do not care about helping their fellow man. If you get a chance to attend one of their gatherings you soon learn that they are happy with their lot and blame the ones without for not being as smart as they in getting their trickle down. Escondido is a sad place because of the class system that exits there.

jvc wrote on Nov 21, 2008 3:04 PM:I know what you are talking about, I
saw a white landscaper the other day and it gave me a sinking feeling!

Why Worry wrote on Nov 21, 2008 3:19 PM:Obama will take care of us.

So It Begins... wrote on Nov 21, 2008 3:55 PM:I am sure the number is really much higher as this number does not account for the thousands of illegal-immigrants who can't find work either.
Sorry people, the government is unable to fix this one, only time!!!

Silver Lining wrote on Nov 21, 2008 3:57 PM:Perhaps this new will discourage future illegal-immigrants from coming here. Sorry, no work. No need to risk crossing the border.....except of course if you want free education, welfare, medical, in-state college tuiton...

feeling it wrote on Nov 21, 2008 4:59 PM:Hey jvc, Having just been told that I have to lay off 15 people Dec. 1, finding out that my daughter lost her job yesterday, I don't think its funny. She had to sign up for unemployment and we've never done that before so we actually didn't know how. If the numbers rose sharply last month, just wait for this months results. Congratulations on your job security and may I add your lack of compassion speaks volumes.

jvc wrote on Nov 21, 2008 10:30 PM:Being from the Midwest, I can recall how mainstreet was being boarded-up and jobs were sent overseas starting with the America's Conservative Era and Reagan's America of greed!
Since then, I have known many who have given up and still out of work!So, for those that are just feeling it, you have been very lucky!

be happy wrote on Nov 22, 2008 12:19 AM:Dont worry Obama will fix everything.

myra wrote on Nov 22, 2008 1:06 AM:why does every article have to have comments on immigrants? By the way, there is no job security.So for the rest of you people that can care less about this unemployment problem, get started early on revising your resumes and have the EDD phone number ready.

Get ready wrote on Nov 22, 2008 1:09 AM:to get in line for food stamps at the county office...Simply said....their is no jobs anymore and when you do in fact apply and get interviewed...the employer pulls the job because of the economy...its only going to get worse

Carter wrote on Nov 22, 2008 8:08 AM:At no time in history has it been more evident, that the Democrats want the non-recession we are in to continue until after Obama becomes President so they can gt credit for solving the problems.
At no time in history has it been more evident that the Republicans want the non-recession we are in to be solved prior to President Bush leaving office.
For the last hour I have listened to talking heads of TV giving their rendition of what caused our economical problems and what to do about them. I don't think they realize that they are the big reason that the American people don't know what the cause is, and what must be done to solve the problems. If the talking heads were given the job they would not know where to start.
I am a moderate.

JSten wrote on Nov 22, 2008 8:41 AM:That the thing about turning a corner, you cant always know what's ahead.

Remember that for our sins of the past we were rewarded with WWII.

The entire globe is affected by the economic downturn.

So...guess what? My family faced starvation in the 1930's while in the midwest in the Depression, and again in the 1950's when I came into this world. This was in Alaska. During the late 1960's we fell on hard times, my dad went from job to job, most of which were of short duration. I Got out of high school in the early 1970's only to be told, if you want work, join the service. Instead, I kept looking and found work on the Alaska Pipeline. All exciting jobs, but short duration and it all ended in 1977.

After I graduated from college, I went to work for a multinational firm in the energy sector. There was another downturn in the early 1980's (remember?) and I lost a job again here in California.

I got a public sector job back in Alaska and stayed with that until the late 1990's when we moved to California again. Now the work is drying up after an extended period of relative prosperity.

This is our communal campfire, where knowledge is shared, stories are told, and the less experienced of us can gain something from those who have been around a little longer.

For what it is worth, people cannot always depend on someone else (people, government, or corporations for a job).

Because of the nature of markets, there are cycles, and wit cycles there are periods of growth and decline. I am OK today, but the near future doesn't look too good.

If you are young, save 10% of your money. Keep some of it in a safe place (the safest that you can find). If you are older like me, well, maybe you can pick up some folding money doing odd jobs or whatever if you haven't set aside enough to see you through hard times.

See, I was told this 20 or more years ago. I didn't listen. And for my part in this and my current position, I have no one to blame but myself.

You could be next wrote on Nov 22, 2008 9:23 AM:I know this is not the case in most situations, but I also know some companies are using this economic downturn as an opportunity to get rid of the non-producing individuals they employ. With the litigious society we live in, employers were afraid to get rid of the dead weight. Work hard and maybe it will pay off.

toyou could be next wrote on Nov 22, 2008 10:08 AM:you are so right- if a worker just shows up to collect a check and not do their work, there are PLENTY of people now who will take that person's job AND actually work!

Greg in Oceanside wrote on Nov 22, 2008 1:44 PM:That's right, Obama promised to "fix" everything, including the creation (out of thin air) 2.5 million new jobs, fixing roads and bridges. So, if you're out of work go out and get a lot of those orange shirts so you can wear one at a job interview will look eager to start building roads and bridges and they'll hire you immediately.

And Obama promised to cut taxes to 95% of us, which begs the questions; when?
And how is Obama going to 'pay' for all these "New Deal" job-creation projects if he promises to cut taxes? Sort of reminds me of Roosevelt!

If you are still wondering about this new, wet-behind-the-ears guy people elected for president, look at who Obama was considering for Sec. of Commerce; Penny Pritzker. She was directly involved in the financial collapse and banking crisis that we're facing.

Be very weary of this guy Obama, his pie-in-the-sky promises and the people he's surrounding himself. There are a lot more cronies waiting in the wings to sink their teeth into Washington politics, none of which will benefit any of those in need.

TO myra wrote on Nov 22, 2008 2:03 PM:The short answer is because there are so many of them here. In for our social systems to work effectively, the assumption is made that most people are working and paying taxes. Most illegal aliens working minimum wage jobs simply do not pay taxes. Most Illegal aliens having large families do not pay into the system anywhere near what they take out. Even a small Illegal Alien family of four will use much more for social services then they will ever contribute. Education is expensive, as is health care, incarceration, and social services. The burden is left to the taxpayers and the communities. Nothing is for free anymore.

A few hard working immigrant families are cute, but we are talking about millions and millions. The cost of providing for illegal immigrants in California is estimated to be at 12 Billion dollars this year.

If it were up to me I would tax all money's sent out of the country, and that would just be for starters.
Now what is going to happen to the families of millions of illegal Aliens who are out of work? Technically they do not qualify for unemployment insurance.

Puppet Masters wrote on Nov 22, 2008 2:20 PM:Does anyone (other than Carter) actually believe that the Democrats are so powerful and brilliant that they could engineer the economy of the entire world? That they worked the puppet strings to cause the housing bubble to burst, the financial industry and banks to go bust, the big three automakers to brink on bankruptcy? You think that group in Congress, which did not even have enough votes to overcome a filibuster, was still able to do all this global manipulation? Wow!

Minimum wrote on Nov 22, 2008 3:48 PM:Companies will also be lowering wages because people will be desperate for work. You'll need to work hard to keep that job. Working harder for less.

Hopefully this thing blows over in 2 years or less.

To Silver Lining wrote on Nov 22, 2008 8:28 PM:Maybe it's time you packed some bags and left for Canada. Hopefully you wont get hit hard by the recession. What goes around comes around.Then you wont be laughing anymore.

jvc wrote on Nov 22, 2008 8:56 PM:These issues are much too complex however, can America compete with the world in terms of providing cheap labor?
No!

Crony wrote on Nov 22, 2008 10:51 PM:Looks like most investors aren't quite as afraid of Obama's cronies as Greg in Oceanside seems to be:

President-elect Barack Obama will announce Timothy Geithner as treasury secretary and Lawrence Summers to direct the National Economic Council, transition officials said.

If confirmed by the Senate, Geithner, 47, president of the New York Federal Reserve, would be the top Cabinet official in charge of leading the administration's response to the global economic crisis. Word of his likely selection Friday helped send the Dow Jones Industrials soaring 500 points after several days of steep losses.

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