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Although the pace of job growth in the South Bay has been somewhat slower this year compared to recent years, the region’s performance would likely be considered satisfactory or even robust in many other parts of the state and nation. From October 2015 to October 2016, total nonfarm employment increased by 34,400 in the South Bay, according to the latest data from California Employment Development Department. This translates to a 3.3% rate of growth—well above the 2.4% rate of growth in California as a whole over the same time period. In all, total nonfarm employment in the South Bay has reached nearly 1.1 million, well above its pre-recession peak of roughly 930,000.
Spurring this growth have been substantial gains in the Professional and Business Services industry, which experienced 6.5% year-over-year job growth since October 2015, adding up to more than 14,000 jobs. Much of this growth can be attributed to an upswing in hiring in the Professional, Scientific, and Technical Services sector, which added 8,300 new jobs from October 2015 to October 2016.
This was a nice bounce for the region, as the South Bay labor market experienced some slight turbulence during August as a result of layoffs.1 Additionally, venture capital funding for software and IT services has experienced major cutbacks compared to 2015 (year-to-date, VC funding for software is down 19.3% and for IT services, 57.5%). Even so, the amount of venture capital funding for these two sectors...