The Bay Area is firing on all cylinders!At the end of each year I survey the economic sectors that make up the Bay Area economy. As 2014 draws to a close, I found almost every economic sector in the Bay Area is on an upward trajectory.
This time last year, we saw a decline in the traditional Silicon Valley tech sectors; Semiconductors, PC’s, Servers, Corporate IT Software and Defense, and layoffs by HP, Lockheed, Cisco and others. The California Employment Development Department (EDD) reported a reduction in the Bay Area job growth rate from 99,000 jobs added in 2012 to just 70,000 new jobs in 2013.
But the decline was happening alongside a boom in the new tech sectors: Social Media, Mobile and the Web.
Actually ... about that New Tech Sector growthIn March 2014 the EDD announced, “Never mind! We under-counted the Bay Area 2013 net job growth by 67%. There were actually 117,000 new jobs in 2013”.
According to current EDD statistics, for the 12 months ending in September 2014, the Bay Area added 102,600 jobs. San Francisco and Silicon Valley are adding jobs at impressive 3.7% and 3.5% annual rates respectively. The East Bay shows a respectable annual rate of job grow at 2%. This level of growth puts Bay Area total employment above the peak achieved at the height of the dot-com boom in January 2001, and brings the unemployment rate down to 4.2%.
That's an impressive growth according to the official count. But judging by the traffic we see on the freeways and the insatiable demand for housing, I will not be surprised if there is another correction from the California EDD and they say once again... "Oops! We under-counted.”
You can download my detailed report here and as always I welcome your feedback!
2014 Bay Area Economic Engine