Meeting Date: July 21, 2026
To: Economic Development Subcommittee
From: Tess Sangster, Economic Development Director
Staff Contact: Tess Sangster, Economic Development Director [email protected], 760-607-2923
Subject: San Diego County Regional & Global Economic Trends Recommended Action
Receive an informational report from the San Diego Regional Economic Development Corporation on the San Diego regional economy and global market trends, discuss and provide feedback.
Executive Summary
San Diego Regional Economic Development Corporation (SDREDC) will provide an update on regional industry and global trends that impact the San Diego regional economy.
Explanation and Analysis
Understanding and anticipating trends in the San Diego regional economy is essential for effective economic development planning and long-term competitiveness. As one of the most dynamic and innovation-driven economies in the nation, the San Diego region is influenced by shifts in industry growth, workforce availability, capital investment, technology adoption, and global market conditions. By staying informed on these trends, staff can proactively align resources, strengthen strategic partnerships, and identify opportunities that support business attraction, retention, and expansion.
The San Diego regional economy serves as a major driver of prosperity for Carlsbad and North County, with strong concentrations in industries such as life sciences, technology, defense, advanced manufacturing, tourism, and clean technology. Regional economic activity, investment patterns, and workforce trends directly impact local businesses and influence decisions related to site selection, expansion, and talent recruitment. Recognizing that Carlsbad’s economy is deeply interconnected with the broader San Diego region, understanding regional economic dynamics allows us to better support employers, identify emerging opportunities, and position the city to remain competitive in an evolving marketplace.
This item will provide an overview of the San Diego regional economy, including key economic indicators, industry trends, workforce conditions, and emerging opportunities to advance our growth. Insights shared will help inform economic development strategies, business support initiatives, and regional collaboration efforts. By maintaining a strong understanding of the broader economic landscape, we can ensure that Carlsbad continues to foster a resilient, innovative, and business-friendly environment that supports long-term economic prosperity.
ECONOMIC DEVELOPMENT SUBCOMMITTEE
July 21, 2026
Item #4 Page 1 of 2
Fiscal Analysis
This action has no financial impact.
Next Steps
Staff will continue to collaborate with the SDREDC and other regional partners to monitor industry trends, workforce dynamics, and global economic conditions impacting Carlsbad and the broader San Diego region. Findings from this presentation will inform ongoing economic development initiatives and regional engagement strategies.
Exhibits
None
July 21, 2026
Item #4 Page 2 of 2
San Diego
Economic Update
City of Carlsbad
Eduardo Velasquez
July 21, 2026
Vice President
How we do it
• Focus on quality jobs, skilled talent, and thriving
households
• Work with and through 150+ companies and
investors
• Lead programs and initiatives that are demand-
driven, employer-led, and outcomes-based.
Regionally focused. Globally competitive.
2 EDC
mobilizes business, government and civic leaders
around an inclusive economic development strategy to
maximize economic prosperity and global competitiveness 3 Regional Snapshot
Carlsbad
Snapshot
Sources: CA EDD (June 2026), CAR (June 2026), CBRE (Q2
2026), U.S. Census (2024)
Office vacancy
Home price appreciation
(Y/Y)
Unemployment rate
13.8%
5.9%
4.4%
$106K Median Household Income
Office vacancy
Home price appreciation
(Y/Y)
Unemployment rate
16.3%
1.4%
4.1%
$143K Median Household Income
Recent job growth is weak & concentrated in lower wage sectors Healthcare sector is masking a job declines in nearly every other secto
r
$46K
$81K
$138K
$104K
$102K
$147K
$78K
$108K
-30,000
-20,000
-10,000
0 10,000
20,000
30,000
40,000
Jobs, year-ago change
Mining, Logging, and Construction Manufacturing
Trade, Transportation, Warehousing, and Utilities Information, Financial Activities, and Other Services Professional and Business Services Health Services Leisure and Hospitality Government
Total non-farm
Sources: CA EDD (June 2026); Lightcast (2025).
Small businesses are the backbone of our economy
5 The wage gap between the smallest and largest firms has widened 60%
of total employment
18%
lower avg. wages
relative to regional avg.
99%
of total businesses
Source: CA EDD (2025)
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Difference in compensation from the regional
average
2017 2025
Business churn is up
Business starts
and
exits have rebounded and exceed pre
-
pandemic levels
6 46K
new businesses
in 2025
Source: CA EDD (2025), U.S. Census Bureau Business Formation Statistics (2025) 43K
businesses closed or
relocated in 2025
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2018 2019 2020 2021 2022 2023 2024 2025
Business exits nearly erased new starts
New businesses Business exit/relocations
The workforce of tomorrow looks different than today’s
7 The workforce of tomorrow looks different than today’s Source: CA Department of Education (2024), Cal Pass Plus (2024), Lightcast (2024) 64%
of high school dropouts are
Hispanic and Latinx
21%
of students completing their
post-secondary education are
Hispanic and Latinx
Demand for degrees and credentials is accelerating
8 J
obs
requiring BA+ have grown 5X faster than those requiring a high school diploma Source: Lightcast (2017-2024)
25%
36%
2%
5%
2%
29%
22%
35%
2%
6%
2%
32%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
No formal educational credential
High school diploma or equivalent
Some college, no degree
Postsecondary nondegree award
Associate's degree
Bachelor's degree and up
Job concentration by educational requirement
Proportion of all jobs in 2017 Proportion of all jobs in 2024 Cost of living is a talent retention challenge
Three
-
in
-
four people leaving San Diego cite high cost of living as the reason -20%
-10%
0%
10%
20%
30%
40%
50%
2018 2019 2020 2021 2022 2023 2024
Household income growth has outpaced
housing
costs, but the gap is shrinking
Average homeowner monthly housing costs Average renter monthly housing costs Median household income
65%
increase in
transportation costs
since 2017
$982
monthly cost for
childcare
Source: U.S. Census ACS (2024), Center for Women’s Welfare (2024); COLI (2018-2024), SANDAG (Dec. 2024) Homeownership remains unreachable for most
10 One in nine households in San Diego cannot afford the median price home -20%
0%
20%
40%
60%
80%
100%
2018 2019 2020 2021 2022 2023 2024
New homeowner monthly costs have almost doubled since 2018 Current homeowner monthly costs Monthly market costs for a new homeowner Source: COLI (2024), Zillow (2024)
TOURISM
31.8M
Early
-
stage innovation
has driven decades of prosperity and growth
San Diego is a research and development hub
11 #1
#2
largest concentration
of U.S. military assets 1
annual
visitors 2
most patent intensive
U.S. region 3
MILITARY
INNOVATION
#3
U.S. life sciences
cluster 4
1 SDMAC, 2020 2 SDTA, 2023 3 WIPO, 2024 4 JLL, 2024
Military
148,932
10%
Innovation
155,709
10%
Tourism
210,354
13%
Education
(including Higher
Ed)
144,133
9%
Healthcare
164973
10%
Locally-serving
797,104
49%
San Diego employment breakdown, 2025
"Locally-serving" includes Finance, Real Estate, Insurance, Professional, Information, Construction, Social Assistance, Government, Transportation, Utilities, Manufacturing, Retail, Wholesale Trade, and Other Services.
Our economy is at an inflection point
Each innovation job supports another two in the economy Source: SDREDC Traded Clusters (2025)
-15,000
-10,000
-5,000
0 5,000
10,000
15,000
2018 2019 2020 2021 2022 2023 2024 2025
Jobs, year-ago change
Innovation job growth drivers are in reverse
Aerospace Cleantech Life Sciences Tech Manufacturing
New business dynamism are a few years of declines
Entrepreneurship tends to rise during periods of weak job growth Source: SDREDC Traded Clusters (2025)
-200
0 200
400
600
800
1,000
2018 2019 2020 2021 2022 2023 2024 2025
Firms, year-ago change
Business formation
resumed but far below pre
-
pandemic highs
Aerospace Cleantech Life Sciences Tech Manufacturing
Companies are doing more with less people
AI
may
be responsible, in
part
, but remote work has also been a boost
Source: SDREDC Traded Clusters (2025)
-5%
0%
5%
10%
15%
20%
25%
2017 2018 2019 2020 2021 2022 2023 2024 2025
Avg. wages cumulative growth
Productivity has surged
Aerospace Cleantech Life Sciences Tech Manufacturing
Regulatory and
permitting support
15 Marketing
and visibility
How we can help
Regionally focused. Globally competitive.
Talent pipeline
development
Expansion services
and site selection
Economic incentive
consulting
Intelligence
and research
Strategic
partnerships
Export/logistics
consulting
Market
strategy
Inbound
investment support
SDREDC business services
Connect with us on social
@
SDregionalEDC
and visit our website
sandiegobusiness.org
Thank you!
©2026 San Diego Regional Economic Development Corporation