An Analysis of Unemployment in San Diego by Mustafa Mayar

Unemployment refers to the state of being without a job and actively seeking employment within the labor market. Unemployment is not a uniform phenomenon across the entire country but exhibits significant geographical variations. This localized nature of unemployment underscores the importance of considering the geographical dimension when analyzing and addressing the issue. Long spells of unemployment, lack of access to job networks, and limited skill development in depressed areas can create barriers for individuals seeking reintegration into the labor market.

From a policy perspective, it is important to consider both supply-side and demand-side interventions when addressing unemployment. While supply-side measures are essential for improving the employability of the workforce, they may have limited impact in areas with insufficient local labor demand. Therefore, policies aimed at stimulating economic growth, attracting investment, and creating job opportunities in struggling regions are crucial to tackling the issue of localized worklessness effectively. It is essential to recognize that some regions are more vulnerable to economic shocks and lack the necessary resources to generate alternative sources of employment. Policies should be designed to ensure equitable access to opportunities, skill development, and social safety nets, particularly for disadvantaged groups, including people of color. By taking a holistic and geographically sensitive approach, policymakers can strive to achieve social justice by reducing unemployment, fostering inclusive growth, and promoting economic well-being for all members of society (Sunley).

As of May 2023, the San Diego County’s unemployment rate was reported to be 3.5 percent, which is lower than the statewide rate of 4.5 percent but slightly higher than the nationwide average of 3.4 percent (Molnar, 2023). The labor force has experienced a decline for two consecutive months, potentially influenced by housing affordability and child care issues. Job growth was observed in certain sectors, but the tight labor market poses challenges in filling temporary positions as workers tend to opt for permanent employment opportunities. Addressing housing affordability and child care availability could play a role in attracting more workers and stimulating economic growth in the region.

In a multiscale map of the San Diego Area in 2022, the layer illustrates the varying levels of unemployment in different regions or areas. Each region is assigned a unique color or shading, indicating its specific unemployment rate. Darker colors signify higher unemployment rates, while lighter colors indicate lower rates. The map's visual representation facilitates the identification of areas with higher concentrations of unemployment and those with lower joblessness. This spatial depiction aids policymakers, economists, and researchers in recognizing patterns and disparities in unemployment across regions, enabling them to devise targeted policies and interventions to address worklessness in specific areas. Additionally, mapping unemployment rates offers valuable insights into the region's economic health and labor market dynamics.

The majority of areas in San Diego in have unemployment rates of 6.8 – 11.3 %, which is higher than the 2022 national average. It’s interesting to observe that these areas of high unemployment are not limited to the outskirts, and are also in the central and downtown areas.

This layer shows the population broken down by race and Hispanic origin. This service is updated annually to contain the most currently released American Community Survey (ACS) 5-year data and contains estimates and margins of error. This layer is symbolized to show the predominant race living within an area.

In the San Diego Metropolitan area, Black or African American represent a relatively small percentage of the population, and unemployment in those areas ranges from 2.3 – 6.8%, which is lower than the majority of other areas.

The median home value refers to the middle value of all home prices in a particular area, where half of the homes have a higher value and half have a lower value. The median home value is often used in real estate and economic analysis to understand the overall price trends in the housing market and to compare the relative affordability of housing across different locations.

In San Diego, areas with lower median home values are also areas with high unemployment. Based on our class discussions, one of the reasons for this could be low to no investment in infrastructure by the government, leading to urban decay. It can also be attributed to limited access to credit. Banks are less likely to give credit lines to people with unstable or no employment. This practice perpetuates homelessness and creates a vicious cycle that is hard to escape.

Asthma prevalence refers to the percentage or proportion of the population living in that specific geographic region who have been diagnosed with asthma. It is a measure of the prevalence or occurrence of asthma cases within the population. Asthma prevalence can vary significantly from one area to another due to various factors, including environmental conditions, air quality, allergen exposure, genetic predisposition, healthcare access, and socioeconomic factors.

In San Diego, areas with high Asthma prevalence also experience high unemployment, alluding to the fact that socioeconomic status and access to adequate healthcare influence asthma rates. Areas with a high Hispanic population experience the highest rates of Asthma in San Diego.

This layer shows the number of households receiving food stamps/SNAP benefits in the year 2019. Data is acquired from the American Community Survey's 5-year estimates through the US Census Bureau website.

In San Diego, the area where the highest number of households receive food stamps/Snap coincide with areas where Hispanic or Latino population resides.

This filter shows areas with high asthma prevalence. In San Diego, areas with high asthma prevalence are areas where the Hispanic and Latino population lives, also coinciding with areas where unemployment ranges from 6.8 to 11.3%.

This layer shows the level of unemployment in San Diego that is higher than the national average during the financial crisis of 2008.

In the context of San Diego, such areas are not very prevalent and exist only in around 5 percent of the entire San Diego Metropolitan area. However, it is interesting to note that the population in these areas includes white people only. This is a deviation from our previous observations, where high unemployment areas have populations that are more likely to be Hispanic or Latino.

From the data above, we can deduce that unemployment is not a uniform phenomenon across the entire region but exhibits significant geographical variations. This means that different regions within San Diego can experience varying levels of unemployment, and these localized patterns need to be taken into account when analyzing and addressing the issue. Long spells of unemployment, lack of access to job networks, and limited skill development in depressed areas can create barriers for individuals seeking reintegration into the labor market, especially for young job seekers. This highlights the challenges faced by certain segments of the population in finding employment opportunities. Policymakers should design interventions that ensure equitable access to opportunities, skill development, and social safety nets, particularly for disadvantaged groups like people of color with low educational attainment. This approach aims to promote social justice and inclusivity in the labor market.

Moreover, the data also sheds light on the relationship between housing affordability, socioeconomic conditions, and unemployment. Areas with lower median home values tend to exhibit higher unemployment rates, possibly due to limited government investment in infrastructure and issues related to credit access. Additionally, the connection between asthma prevalence and unemployment indicates that health factors can influence workforce participation, emphasizing the importance of adequate healthcare access for the labor force.

Works Cited

Molnar, P. (2023, June 16). Lack of affordable housing, child care causing San Diego’s labor force to drop, economist says. Retrieved from The San Diego Union-Tribune: https://www.sandiegouniontribune.com/business/story/2023-06-16/lack-of-affordable-housing-childcare-causing-san-diegos-labor-force-drop-economist-says

Sunley, P. Geography of Worklessness