Tech flexing muscle as job gains mount
Labormarket ‘ definitely fired up’ as July sees 24,700 new positions
Santa Clara County hit its highest job totals in 14 years and the East Bay set a record for total jobs as the Bay Area enjoyed another powerful employment surge in July. The region added 24,700 jobs during the month, fueled by a tech sector that produced nearly one- third of the job gains, according to a report from the state’s Employment Development Department released Friday.
“I just can’t believe what is happening with the tech industry in the Bay Area,” said Christopher Thornberg, founding partner with Beacon Economics. “It’s so strong, you get tempted to call it a tech bubble. But what’s happening in Santa Clara County and elsewhere with tech is real. Tech is the domi-
“The job gains in California are astonishing. They are not a mirage.”
nant force in the Bay Area.”
Santa Clara County and the East Bay each added 6,900 jobs in July, while the San Francisco- San Mateo region added 7,300 jobs, the EDD reported. All the numbers were adjusted for seasonal changes.
“The Bay Area labor market is definitely fired up,” said Scott Anderson, chief economist with San Francisco- based Bank of the West. “The sizzling monthly gain almost ensures another year of outsize job growth in the Bay Area.”
What’s more, outside factors have yet to erode the strength of the region’s job market.
“China, oil prices, the drought, the stock market don’t seem to faze the Bay Area economy,” Anderson said.
California gained 80,600 jobs in July and the statewide unemployment rate improved to 6.2 percent, compared with 6.3 percent in June.
“The job gains in California are astonishing,” said Michael Bernick, a fellow with the Milken Institute and a former EDD director. “They are not a mirage.”
Jobless rates were stable throughout the Bay Area. The unemployment rate was 4.7 percent in the East Bay during July, unchanged from June; 4.1 percent in Santa Clara County, slightly worse than the 4 percent rate in June; and 3.4 percent in the San Francisco- San Mateo area, unchanged.
The total number of nonfarm payroll jobs in Santa Clara County reached 1,064,700 during July, which is the highest such level since February 2001 and just 10,900 jobs below the record set in December 2000, according to this newspaper’s analysis of the EDD report.
The East Bay in July reached 1,089,300 nonfarm payroll jobs, which is a record for the Alameda County- Contra Costa County region, a review of the EDD data shows.
“It’s unbelievable how strong things are right now,” said Stephen Levy, director of the Palo Altobased Center for Continuing Study of the California Economy. “You drive around Silicon Valley, and you see Google, Apple, LinkedIn, Facebook, a lot of other companies, hiring and adding office space.”
The tech sector alone added 7,600 jobs during July, according to an analysis of the EDD data by Beacon Economics. That equates to 31 percent of all the jobs added in the Bay Area.
The tech sector added 2,600 jobs in Santa Clara County, 1,700 in the East Bay and 3,100 in the San Francisco- San Mateo region.
Yet a number of nontech industries also showed robust growth in July throughout the Bay Area, Beacon Economics reported.
In Santa Clara County, private educational services added 2,100 jobs, health care gained 1,400 jobs, arts and entertainment was up by 1,300, and hotels and restaurants gained 600 jobs. In the East Bay, health care added 1,000 jobs, hotels and restaurants added 1,000 and manufacturing gained 500. In the San FranciscoSan Mateo metro area, construction gained 1,100 jobs, real estate added 900 and health care gained 700.
“It’s primarily the tech sector that is driving things, but now we are seeing that just about every other industry is adding jobs consistently,” said Mark Vitner, a senior economist with San Francisco- based Wells Fargo Bank. “It’s hard to get a prettier picture than this.”
Job seekers are benefiting from the trend.
“Big companies like Google and Apple, they are really hiring and going strong,” said Jatin Grover, who lives in San Jose but wants to move to San Francisco because he’s just landed a job at a tech startup there. “They have grown so much, and they are looking for a lot of people.”