53.7 F
San Diego
Thursday, Mar 28, 2024
-Advertisement-

Jobs Shift From Manufacturing to Services Sector

Jobs Shift From Manufacturing to Services Sector

by Mike Allen

The shift in San Diego’s economy to one dominated by services rather than one that makes things is evident in this year’s List of Fast-Growing Private Companies.

Seven of the 10 fastest-growing firms are in the services sector, as are 12 of the top 20.

As the services sector has risen, the manufacturing sector has continued its decline locally.

Among the winners are defense contractors that are winning business with federal agencies such as the Navy’s Space and Naval Warfare Systems Command, or Spawar. Other fast-growing firms are in financial services, telecommunication consulting, information technology, and environmental consulting.

Only three companies classified as manufacturers made the top 20 this year, which didn’t surprise experienced observers of San Diego’s economy.

“It’s an ongoing trend that has been going on the last 10 years as we’ve seen the economy transition from one dominated by the aerospace industry to a more services-oriented economy,” said Kelly Cunningham, research director for the San Diego Regional Chamber of Commerce.

The positive results from this shift is the local economy is far more diversified, and not as dependent on a single industry, which has helped the region maintain a low unemployment rate compared to other areas in the nation, Cunningham said.

The downside is the loss of manufacturing jobs, usually higher-paying and more stable than most service sector jobs.

According to the most recent state report, the San Diego area lost 400 manufacturing jobs during August, which brings the total of lost jobs in this category over the past 12 months to 3,000.

The region had 127,700 manufacturing jobs as of the end of August, down 2.3 percent from the same month in 2001, according to the state’s Employment Development Department.

The development has both good and bad implications, said Alan Gin, a USD professor that compiles an index measuring the strength of the local economy.

While many of the new jobs being created by services pay higher salaries, they also require higher skills and advanced training, which many of the lost manufacturing jobs didn’t require, Gin said.

“With these new jobs, you’re going to need better education and skills,” Gin said. “The risk is that we’re leaving some people behind.”

Along with the better paying service jobs, the local economy is also creating plenty of low paying jobs in such areas as retail trade and tourism, but not that many better paying jobs to replace those lost in manufacturing, Cunningham said.

“We’re creating high paying jobs and low paying jobs, but not that much in between,” he said.

, Mike Allen

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-
-Advertisement-