Daily Business Report-June 20, 2016
An example of an online ad promoting San Diego for the summer season. (Courtesy of Tourism Authority)
Employers Ramping Up
For Influx of Summer Visitors
Jobs Rise — Jobless Numbers Decline
San Diego County’s unemployment rate in May dropped to 4.2 percent — down from 4.5 percent in April and below the year-ago figure of 5 percent, the state Employment Development Department reported on Friday.
Nonfarm employment in the region was up by 4,800 jobs over the month and up by 32,200 job over the year.
California’s unemployment rate for the same period was 4.7 percent while the national jobless rate was 4.5 percent.
“While the state and nation’s unemployment rates did not experience any month-over change, San Diego’s unemployment rate decreased greatly due to employment gains in tourism and hospitality,” said Tina Ngo Bartel, director of business programks and research for the San Diego Workforce Partnership. “Companies in San Diego are ramping up for summer visitors, which is reflective of the seasonal employment influxes for this industry.”
Between April and May
Total nonfarm employment increased from 1,412,300 to 1,417,100, a gain of 4,800 jobs. Agricultural employment added 100 jobs, or 1.1 percent.
• Leisure and hospitality reported the greatest month-over gain, adding 2,200 jobs. Arts, entertainment and recreation, and accommodation and food services each accounted for half of the job growth in this sector (up 1,100 each).
• Five other nonfarm sectors also added jobs over the month. The most significant employment gains came from professional and business services (up 1,900), mainly from employment services (up 1,000).
• Four sectors reported month-over job losses: construction (down 800); trade, transportation and utilities (down 500); information (down 300); and manufacturing (down 200). Mining and logging remained unchanged.
Between May 2015 and May 2016
Total nonfarm employment increased by 32,200, or 2.3 percent. Agricultural employment added 200 jobs, or 2.1 percent.
• Educational and health services posted the greatest year-over gain, adding 7,600 jobs. Healthcare and social assistance (up 7,000) contributed to more than 90 percent of the job growth in this sector. Professional and business services added 6,500 jobs, primarily from administrative and support services (up 3,400).
• Seven other nonfarm sectors also added jobs over the year. The most notable employment gains came from government (up 5,700) led by advances in local government (up 3,200). Federal government added 700 jobs while state government increased by 1,800 jobs.
• The only year-over decline was reported in information (down 200). Mining and logging posted no change in employment levels over the year.
California Overtakes France
To Become Sixth-Largest Economy
Bloomberg
California has overtaken France as the world’s sixth-largest economy, fueled by strong growth and the U.S. dollar’s gains against foreign currencies, according to state data.
The most-populous U.S. state, with a gross domestic product of $2.5 trillion, has also eclipsed recession-plagued Brazil.
“This is the result of both good growth in California and exchange-rate movements of the U.S. dollar versus other currencies,” said Irena Asmundson, chief economist in the California Department of Finance.
Gov. Jerry Brown, 78, is running the state during an economic turnaround driven by technology companies including Facebook Inc. and Apple Inc., along with agricultural and manufacturing industries that lead the U.S. Since taking office in 2011, Brown steered the state away from fiscal turmoil and persistent deficits to budget surpluses.
California grew by 4.1 percent in 2015, compared with a 2.4 percent increase for the U.S. and 1.1 percent for France, Asmundson said.
Last year, California created the most jobs of any state, more than the second- and third-most-populous states Florida and Texas combined. Four of the world’s 10 largest companies are based in California, including Alphabet Inc. and Facebook.
Documentary on Balboa Park
Wins EMMY Award
The original documentary, “Balboa Park: The Jewel of San Diego,” has been awarded an EMMY Award by the National Academy of Television Arts & Sciences, Pacific Southwest chapter.
The EMMY Award was in the category of Historical/Cultural Program or Special. The film was produced by Electric Ivy and presented by the San Diego History Center.
Kris Visselman was executive producer, Josh Allard, producer and director and Cody Long, producer and editor. Charlotte Cagan, former CEO of the History Center, and Tom Fetter, president of the San Diego History Center Board of Trustees, also had roles in the film’s production.
The film is shown three times a day in the Thornton Theater at the History Center in Balboa Park. It also is available for purchase.
City Settles Contamination Claims
On Qualcomm Stadium Property
The city of San Diego and Kinder Morgan Inc. announced a settlement resolving all claims related to the historical contamination at the city’s Qualcomm Stadium property.
The settlement provides for a $20 million payment to the city, and also includes an agreement by Kinder Morgan to cover additional, incremental costs, if any, incurred by the city in the redevelopment of the Qualcomm Stadium property or development of the groundwater beneath the property, that are caused by historical releases from the Mission Valley Terminal. The settlement ends nine years of litigation between the parties.
Kinder Morgan is the largest energy infrastructure company in North America, and owns the Mission Valley Terminal, which is a liquid storage facility located just north of the Qualcomm Stadium property in Mission Valley. The Mission Valley Terminal has been in operation since the 1960s, and is the primary fuel distribution hub in San Diego County. The dispute arises from releases of petroleum products dating as far back as the late-1980s and early1990s, before Kinder Morgan purchased the Mission Valley Terminal.
Although Kinder Morgan did not own the Mission Valley Terminal at the time of the earliest releases, the company accepted the legal responsibility to perform the remediation. According to Kinder Morgan, it has spent over $75 million remediating the Qualcomm Stadium property to meet the stringent cleanup standards established by the Regional Water Quality Control Board. On May 4, 2016, the Regional Board declared: “The [cleanup standards] provide reasonable protection of beneficial uses and will not result in water quality less than prescribed in water quality control plans and policies adopted by the State Water Board and the San Diego Water Board,” and that Kinder Morgan has met those standards.
MTS Transit Store Has New Location
The Metropolitan Transit System Transit Store has moved to a new location at the 12th & Imperial Transit Center in East Village. It was at Broadway and First Avenue for 21 years.
“To many of our passengers and visitors, the Transit Store is the face of MTS. So this new location, at our busiest Transit Center, is perfect for our customers,” said Paul Jablonski, MTS chief executive officer. “All three Trolley lines, multiple MTS bus routes, Greyhound and the MTS headquarters are all operating at 12th & Imperial, making the new location very convenient for customers.”
The Transit Store will have enhanced clerk stations to speed up service, customer information areas with digital displays, and a modern look and feel.
The Transit Store is open Monday through Friday from 9 a.m. to 5 p.m., and closed on weekends and most holidays.
Cal State San Marcos Hires
First Director for Public Health
Emmanuel Iyiegbuniwe, an educator with more than 25 years of experience in academic administration, teaching and research, has been appointed the first director for public health at California State University San Marcos.
As director for public health, Iyiegbuniwe (pronounced E-yeah-bu-nee-wey) will provide vision, leadership and administrative direction for a new Master of Public Health program in the early stages of accreditation with the Council on Education for Public Health.
The Master of Public Health degree at CSUSM will prepare graduates to be public health professionals and leaders in community organizations, government, the military, academia and private-sector businesses.
“I strongly believe that research should inform public health practice and that research, public service delivery and public health policy should develop in a mutually reinforcing fashion for the benefit of all stakeholders, especially our students,” Iyiegbuniwe said. “I look forward to collaborating with students, faculty and staff at Cal State San Marcos as we strive to achieve our goals.”
Iyiegbuniwe has expertise in developing comprehensive environmental public health programs as well as fostering learning collaborations and research.
Iyiegbuniwe received his M.S. and Ph.D. degrees in environmental and occupational health sciences from the School of Public Health at the University of Illinois at Chicago.
