‘Very hot economy’ fuels job surge
Bay Area’s 2019 hiring is outpacing previous two years, state report shows
The Bay Area continued to add jobs at a sturdy pace during October, according to a state government report on Friday that also revealed the region’s pace of hiring so far in 2019 has soared far above the employment gains over the same period in 2018.
Employers added 5,900 jobs in the Bay Area in October, and the East Bay, South Bay and San FranciscoSan Mateo regions all contributed to the employment surge, according to the state’s Employment Development Department.
“We do have a very hot economy right now in the Bay Area,” said Taner Osman, research manager with Beacon Economics. “Frequently you have naysayers who are looking for a recession. But the economy is doing just fine.”
During October, the East Bay added 2,900 jobs, the San FranciscoSan Mateo region gained 2,800 positions, while Santa Clara County added 500 jobs, the EDD reported. All the numbers were adjusted for seasonal variations.
The job totals in Santa Cruz County were unchanged, according to the report.
“The job market is very healthy,” said Genine Wilson, vice president of Pacific regions for Kelly Services, a workforce solutions firm. “We are in a very strong hiring environment.”
California’s jobless rate improved to 3.9% during October, setting a new record low, according to the EDD report. California added 23,600 nonfarm payroll jobs in October.
“California set a few records today,” Gov. Gavin Newsom said in a Twitter post. Besides the jobless rate: 116 consecutive months of employment expansion in the Golden State.
So far this year, the rate of hiring in the Bay Area, despite concerns among some economists that em
ployment gains are slowing, has outpaced 2018, this news organization’s analysis of the EDD’s employment statistics indicates.
“Not only are the Bay Area counties all at historic low unemployment rates, but also job growth for the first 10 months of 2019 is running well ahead of the previous two years,” said Michael Bernick, a Milken Institute fellow and a former director of the state EDD.
Over the first 10 months of 2019, the Bay Area added 85,500 jobs, the EDD’s seasonally adjusted figures show. During the first 10 months of both 2017 and 2018, the nine-county region added about 59,000 jobs.
This means the pace of hiring so far in 2019 is running about 44% higher than the gains in the similar 10-month periods for both 2017 and 2018, the EDD figures show.
“These trends are a little surprising given all the headlines we have seen about faltering IPOs and how that’s likely to play out and make it tougher for tech companies to secure venture funding,” said Mark Vitner, senior economist with Wells Fargo Bank. “But it’s nice to see the really strong numbers for the first 10 months of this year.”
Similarly, so far in 2019, two of the three major urban centers in the Bay Area have outraced the employment gains in the comparable periods of 2018.
Over the first 10 months of 2019, the San Francisco-San Mateo region added 29,600 jobs, slightly below the 30,200 jobs that area added during the similar period in 2018.
Santa Clara County during the first 10 months of this year gained 28,900 positions, more than double the 13,200 jobs the South Bay added in the January-October period of 2018.
The East Bay added 21,000 jobs over the first 10 months of 2019, compared with a gain of 11,300 positions during the first 10 months of 2018.
Technology companies continue to scout at a feverish pace for recruits and good hiring prospects, Vitner said.
“One of the greatest problems that tech companies have is to find the workers they need and then to hold on to them,” Vitner said.
Plus, the boom in the tech sector in regions such as the Bay Area tends to bolster plenty of nontech industries, experts said.
“In the Bay Area’s case, we have seen new subsectors in the tech industry that are really fueling the growth in that region,” Osman said. “As tech workers consume local services, go to restaurants, shop in stores, stay in hotels, that has a spillover and virtuous effect.”
Even with ongoing strength in the employment market, employees and job seekers still should attempt to improve their strengths so they’re poised to seek new jobs if they so choose.
“Now more than ever people have opportunities to get the skills they need to find really wellpaying jobs without having a college degree,” Wilson said. “Don’t just rely on your current employer for your skill sets. Keep yourself trained up and viable for future workforce needs.”
The upswing in the Bay Area economy and its job market isn’t likely to falter anytime soon, some experts said.
“The Bay Area is doing fine. Southern California is doing fine. The rumors of the death of the economy are greatly exaggerated,” Beacon’s Osman said.