San Francisco, California Sharp Decrease in Jobs in California Coincides with Hike in Industry Wages

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Industry wages in the San Francisco-Oakland-Fremont area of California state have risen by 13.9% for the five-year period starting 2001 and ending 2006. This is lower than the state-wide growth in industry wages, and lower than the increase in average wages for the country. Average annual industry wages as of the 2nd quarter of 2006 stood at $57,320 for San Francisco-Oakland-Fremont, much higher than the $45,538 in average annual industry wages of California. The United States trailed the two regions with $40,259 in average annual industry wages for the same time period.

From mid-2001 to mid-2006, the number of workers for all job sectors in the San Francisco-Oakland-Fremont area fell by 116,840 jobs. Fifty industry sectors (out of the 139 industries whose industry data were released by the Bureau of Labor Statistics) had job losses in that five-year period. At the same time, eighty-eight other industry sectors posted increases in employment.

The General Medical and Surgical Hospitals industry showed the biggest expansion (among the 4-digit NAICS industries) with an increase of 12,511 jobs from 2001 to 2006. This increase is equivalent to 15.5% of the total growth of the San Francisco-Oakland-Fremont area. Private Hospitals followed suit with 7,228 new jobs. Management and technical consulting services added 6,742 jobs, while Full-Service Restaurants grew by 5,831 new jobs. Outpatient Care Centers posted a respectable increase of 4,112 jobs.

Out of the total jobs lost by 4-digit NAICS industries in the San Francisco-Oakland-Fremont area, 11.9% was attributed to the Management of Companies and Enterprises industry – a loss of 17,845 jobs. 12,487 jobs was lost by Employment Services. Offices of Physicians lost 9,833 jobs, followed closely by Security and Commodity Contacts Brokerage with 9,620 jobs lost and trailed by ISPs and web search portals with 9,354 jobs lost. For all industries, employment fell by 6.4% from year 2001’s reported values – contrasting sharply with the 2.8% job increase of California and the 2.6% gain throughout the country.

The largest percentage of jobs (70.2%) was lost by the Sound Recording Industries industry from the 2nd Quarter 2001 to the 2nd Quarter 2006 in the San Francisco-Oakland-Fremont area. This showed a faster decline than the 45% fall in employment for the industry in California. The same industry throughout the United States posted employment losses of just 29%. Other industries which showed job losses for the San Francisco-Oakland-Fremont area are: ISPs and web search portals (61% job loss); Business, Computer and Management Training (53.5% job loss); Unclassified (48.7% job loss), and Other General Purpose Machinery Manufacturing (47.9% job loss).

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Article Custom Written/compiled for Job Service Help by Mabelle Sese of The Filipino Worker Company. Updated June, 18, 2007