Tech Hubs in Bay Area Cut Employment Despite Job Gains in August
The Bay Area added jobs in August, primarily driven by an upswing in the East Bay while the South Bay and San Francisco, the region’s main tech hubs, reduced positions according to a recent report. A total of 1,100 jobs were added, primarily due to 1,800 jobs created in the East Bay, more than compensating for losses in the other areas. The South Bay lost 600 jobs in August and the San Francisco-San Mateo region shed 400 jobs.
However, tech layoffs have become a growing concern for the Bay Area economy. Factors contributing to this situation include intense global competition, international instability, punishing rates, and market softening conditions. Recent notes include San Jose-based tech giant Cisco Systems’ decision to cut 842 jobs in the Bay Area and IBM’s decision to eliminate another 112 positions.
The San Francisco-San Mateo region has now witnessed job losses for eight consecutive months, reinforcing the perception that San Francisco’s economy is in decline. Simultaneously, the Santa Clara County region has also lost jobs for three successive months according to the monthly state Employment Development Department (EDD) reports. The tech sector’s ongoing weakness may continue to affect the Bay Area’s overall job market.
On a statewide level, the job market in California also appears to be in a precarious position, with only 6,800 jobs added in August, a drastic fall from previous months. The state’s unemployment rate rose to 5.3% in August, up from 5.2% in July.
For those affected by layoffs and seeking to engage with the California Employment Development Department (EDD), it may be challenging knowing how to get a hold of edd. A useful resource in this situation is eddcaller.com, a website that provides information and guidance on contacting EDD.