County Jobless Rate Declines in July to 7.3%

Thanks in part to a seasonal increase in student employment, San Diego County’s jobless rate dipped to 7.3% in July, an improvement from the 8.1% rate the previous month, which set a nine-year high.

Shrinkage in the county’s employment base continued, however. Total workers on San Diego County payrolls in July declined to 963,100, a drop of 9,300 from the 972,400 that were employed in June.

Since July, 1991, total county employment has shrunk by 19,000 jobs as the economy has been battered by the recession, defense budget cutbacks and the consolidation among defense contractors in San Diego’s defense-reliant economy.

The local manufacturing sector led the decline in jobs with a total of 126,200, nearly 8,000 less than a year ago. Aircraft and missile factory jobs alone dropped by 3,500 to 22,200 jobs over the year.

Other sectors also have been hit. High-technology jobs, which include communication and computer--related jobs, were down to 49,100, off by more than 6,000 over a 12-month period. Construction jobs in the county totaled 46,600 in July, down by 5,100 since July, 1991.

San Diego County’s unemployment rate in July was better than California’s 9.3%. The statewide figure was down from 9.5% in June but up from 8% in July, 1991. Local unemployment is also lower than in the United States as a whole. The U.S. rate was 7.6% in July, down from 7.8% in June and up from 6.7% in July, 1991.

San Diego County’s jobless rate is higher than July, 1991, when 6.8% of the local work force was idled.

The local unemployment rate improved despite the shrinking number of total local jobs, partly because more San Diego County residents apparently are working outside the county, said Lucile Sullivan, a labor market analyst.

San Diego County Unemployment Rate

January June July December 1990 3.8% 5.4% 1991 6.3% 5.7% 1992 6.6% 8.1% 7.3%

Source: State Employment Development Dept.