Wednesday, May 20, 2009

S.F. not exempt from recession's effects

A statistical snapshot from the San Francisco controller's office says the city's unemployment rate reached 9 percent in March - a level the city has not seen since 1984.

Temp agencies, construction, retail trade and financial services continued to show the largest percentage declines in employment. Job losses also are starting to accelerate in tourism-related businesses.

Both the hotel sector and international arrivals to San Francisco International Airport posted their weakest numbers of this recession in February, according to the report.

The city's real estate industry showed no signs of a recovery, with accelerating weakness in residential asking rents, median home sales and commercial rents. The commercial vacancy rate remained a relatively healthy 13.8 percent, but this figure did not include nearly 1 million square feet of sublease space now on the market.

For the first time during this recession, the city has seen a large monthly increase in its County Adult Assistance Programs utilization, which rose 5.2 percent over February. The increase in unemployment during the recession is now affecting the city's social service costs.

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