According to the most recent monthly jobs report compiled by the state of California Employment Development Department, the non-seasonally adjusted San Francisco unemployment rate came in at 3.7 percent in July. This represents a 0.9 percent decrease from this time last year. In the same month, 5,500 San Francisco jobs were added, on a non-seasonally adjusted basis.
Across the state of California, the seasonally adjusted unemployment rate was 6.2 percent in July, significantly lower than the 7.4 percent reported this time last year. On a seasonally adjusted basis, the state added 80,600 jobs over the month.
What do these numbers mean for employers in the San Francisco area?
“The San Francisco year-over-year change in the unemployment rate represents economic recovery in the area,” notes Sharon Black, senior district president with Robert Half. She adds, “This decrease, combined with the job growth we’re seeing in industries like professional services, retail trade and business services, indicate a robust San Francisco jobs market.”
Black is quick to add that while these trends are positive in terms of the overall economy, they can mean increased competition for employers seeking skilled prospects for open positions. “To attract top talent, businesses need to make their companies appealing,” Black notes. She suggests employers do this by offering competitive starting salaries and advertising additional, less conventional benefits like professional development opportunities or flexible work schedules.
Black also says employers need to make wise staffing choices in a market where they may feel hurried to come to a decision. Hiring managers should stay abreast of employment trends within their sectors to gain a competitive edge. Prepping interview questions ahead of time can also help ensure they get the details they need to make a solid and informed hire.
Once you’ve got the right employees on your payroll, the task becomes retaining that talent. Black notes, “With job openings on the rise, your best employees may be tempted to look elsewhere.” To keep your valued team members from jumping ship, consider meeting with them to gauge their overall job satisfaction. You should also offer increased compensation and career advancement opportunities for key players.
How does the current San Francisco unemployment rate affect your hiring plans? Let us know in the comments.