Bay Watch: Strong Finish for New Jobs in 2023
Bay Watch is a regular feature of the Bay Area Council Economic Institute that provides analysis and insights on key local and regional economic, demographic and other data.
The nine-county Bay Area gained nearly 20,000 jobs in the last two months of 2023 — a reversal that defied the previous four months, when the region lost over 11,000 jobs. Over the course of 2023, the region added 43,100 jobs, for a net increase of 40,000 jobs since February 2020. The East Bay subregion (which includes Alameda and Contra Costa counties) led the region’s growth with 15,700 new jobs added in 2023, followed by the South Bay with 11,500 new jobs, the North Bay with 9,900 new jobs, and San Francisco & the Peninsula with 6,000 new jobs. The region’s job creation in December accounted for nearly half of all of the jobs created in California.
While these gains could signal a bounce back, it is too soon to draw any conclusions about the pace of future job creation. Many of the recently announced layoffs across the region have yet to be reflected in the Bureau of Labor Statistics’ labor market data, and layoffs may continue as companies continue to focus on profitability by reducing headcounts.