San Diego Tech Jobs Decline
The number of new locally-based technology companies declined at the beginning of this year, meaning there were fewer new San Diego tech jobs available.
The most recent Innovation Report from Connect found that 51 technology start-up companies were formed in San Diego County during Q1 2010. Although that number doesn't seem low, it's 21 percent below the number of tech start-ups created during Q1 2009, and a 31 percent decrease from Q4 2009.
Throughout California as a whole, 442 new tech companies were created during Q1 2010, which is a 37 percent decrease from Q4 2009. San Diego County accounted for 13 percent of new technology businesses throughout the state at the beginning of this year, placing it third, after Los Angeles and Santa Clara counties.
"There appears to be a fairly consistent pattern in start-up formation," Kelly Cunningham, economist and senior fellow at the National University System Institute for Policy Research, said. "The first quarter of the year shows a decrease in number of start-ups and ends up being the lowest quarter of the year. This is most likely a seasonal variation due in part to potentially higher tax liabilities incurred in establishing a new business in the first quarter. The decrease in the first quarter of 2010 is due more to this seasonal variation than to the economic and financial environment."
The companies formed at the beginning of this year are responsible for creating more than 140 jobs in San Diego County. And while the tech industry accounts for only 6 percent of employers and 11 percent of jobs in the county, it makes up more than 25 percent of all payrolls, as tech companies pay 80 percent higher salaries than the overall average.
The industries responsible for creating tech companies during Q1 2010 include:
- Software at 31 percent
- Pharma, bio and medical devices at 31 percent
- Communications at 20 percent
- Computer and electronics at 6 percent
- Recreational goods at 6 percent
- Environmental at 4 percent
- Defense and transportation at 2 percent