SAN FRANCISCO—Nonfarm employment in the San Francisco Metropolitan Division—includes San Francisco, Marin, and San Mateo Counties—reached record high levels this summer and the region is strengthening its position as one of the leading drivers of job creation in California. That is according to a regional outlook report from Beacon Economics.
As of July 2014 there were 1,106,400 nonfarm jobs in the region, 3,500 more positions than in December 2000 when the all time high was set. Job creation in the San Francisco MD is also outpacing the state. From July 2013 to July 2014 nonfarm employment in the region grew by 3.4%, compared to 2.1% in the state overall, the firm says.
Furthermore, the San Francisco MD boasts the lowest unemployment rate in California, currently at 4.5% compared to 7.4% in the state overall. Importantly, the low unemployment rate is a result of people moving from unemployed to employed as opposed to job seekers dropping out of the labor force.
With the exception of marginal losses in the natural resources and mining, wholesale trade, and the other services sectors, job gains were seen across every major industry in the San Francisco MD. Even Government sector employment, which has been in general decline across the state in the wake of the 'Great Recession', posted year-over-year job gains.
The professional, scientific, and technical services industry remains one of the largest job creators in the region. From July 2013 to July 2014 this industry grew by 9,200 jobs and represented 25% of the net increase in total nonfarm employment. The job gains from this industry have also continued to boost the region's commercial real estate market.
Beacon Economics is currently projecting nonfarm employment in the San Francisco MD to maintain its upward momentum and achieve record high employment levels next quarter. The forecast calls for annual growth of 3% in 2014 and for the unemployment rate to fall to 4% by the middle of 2015.
The median price for an existing single-family home in the San Francisco MD has climbed into record high territory since the firm's latest regional outlook report. The surge has been fueled by tight supply and a dwindling number of distressed properties.
Based on the current fundamentals in the housing market, Beacon Economics sees home prices continuing to increase in the coming year, albeit at a slower pace than experienced over the last several quarters. For the remainder of 2014 expect year-over-year growth in San Francisco's median home price to slow to 10% and then, in 2015, slow further to single digit growth.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
