In this issue we are rolling out our new expanded analysis of the Northern California economy. Coverage of Northern California will now include two separate publications of quarterly analysis within the region. The first publication will focus on the San Jose-Sunnyvale-Santa Clara metropolitan statistical area and the second on the San Francisco-Oakland-Hayward metropolitan statistical area.
The San Francisco metro area continued its strong economic performance heading into the second half of 2015. Area nonfarm payrolls added 27,200 jobs in July and August alone. Even with stronger labor force growth, the gains in labor markets have pushed the area unemployment rate down to 4.1 percent as of July. In August, global market selloffs hit tech stocks. The Mercury News Silicon Valley 150 remained down 10.3 percent from May highs as of September 21, as concerns of weaker international demand persist. A weakened global economic outlook as well as increased compensation and other costs are potential headwinds and may lead to moderating growth in tech sector employment heading into 2016.
Oakland continues to be a hot spot for residential growth and now has drawn in a major tech company from across the Bay. The area has been an attractive place to reside for those willing to commute due to its cultural draw and lower rents compared to San Francisco. Demand for living in Oakland has boosted home prices by 15.2 percent from a year ago in August, according to Zillow. Now Uber Technologies, Inc. is looking to expand its operations to the old Sears building located at 19th and Broadway in Uptown Oakland. The new location could hold around 3,000 additional workers. Renovations on the building are expected to be completed in 2017.
Click here for the complete San Francisco MSA Economic Update: San Francisco_2015_Q3.