According to the most recent state labor statistics, the San Diego unemployment rate has dropped to just 3.7%. That is one of the lowest points it has reached over the course of 2017.
It also puts San Diego ahead of both the state of California and the US overall when it comes to jobs. The unadjusted jobless rate for the state was measured at 4.3%. The country’s overall jobless rate was 3.9%.
Looking at the year-over-year data, 16,600 new jobs were added in San Diego. This is actually a decline in the rate of job growth, but it is still pretty solid.
Actually, the slowing job growth may be an indicator of growing economic stability. Job growth was strong and steady for years because the city was recovering from the recession. Now that more workers are in jobs, fewer openings are appearing.
Over the 12-month period, the most significant job increases showed up in the health services and educational sectors (4,300 openings in total). The next largest category was the “other services” category (3,300 openings), followed by hospitality, leisure and government (2,900 for each of the three categories).
All of this is good news for the local real estate market. While the precise relationship between real estate and unemployment is hard to pinpoint, high unemployment does tend to lead to a decline in the housing market.
This is probably because those who are unemployed or under-employed are significantly less likely to shop for homes. Even if they have some money in the bank, they may have no financial stability. Losing a job can be in a very literal sense an uprooting.
When jobless rates go down as they have for San Diego recently, more people have the resources and confidence to shop for housing and put down roots, flourishing as part of the local community. Hopefully this trend will continue through 2018.
Ready to grow some roots in our community with a new home of your own? Contact me, Maureen Martin today at (619) 857-7191 for a consultation.