SAN DIEGO (KGTV) — Defense spending and jobs in San Diego declined this past year, reflecting how decisions in Congress can quickly trickle down to local communities.
"We're trending downward a little bit from 2024, about 3%," said David Boone, CEO of the San Diego Military Advisory Council.
The council collected data this past year showing how the military plays a central role in San Diego's economy, making up around 22% of jobs and contributing $61.3 billion in gross regional product, more than any other sector.
"The contracting the military plays with our small business owners is hugely impactful. You see the ripple effect of the jobs created, businesses created from the spending that happens," said Chris Cate, president of the San Diego Regional Chamber of Commerce.
When the federal government levels out defense spending like it did this past year, it can start to take a toll on the San Diego region. This year's report shows a slight drop in jobs, spending, and gross regional product.
"When I look at the spending data, it's consistent with people making those tough choices to safeguard the reserves. If you or I know we're not going to get a raise next year, we'll probably put off buying that hot tub or swimming pool," said UC San Diego Professor Michael Meyer, who helped author the report.
The council says President Trump's widespread layoffs of civil servants also slowed economic progress.
"We also saw federal employees taking retirements or separating from federal employment, that had an impact," Meyer said.
But researchers aren't too concerned, considering that the defense budget was still relatively large compared to prior years.
This report covers fiscal year 2025, so it doesn't include the impact of the government shutdown. Leaders expect that to be reflected in next year's data.
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