East Bay Economic Update - August 2010

Latest update from the East Bay Economic Development Alliance - take it with a grain of salt, because it feels like things are changing rapidly (for the better), and this data is now 30 days old.

Unemployment:  East Bay rate was 11.8 percent in July 2010, up from a revised 11.4 percent in June 2010, and above the year-ago estimate of 11.3 percent. This number compares to the following:

• California: 12.8 %
• Alameda County: 11.9%
• Contra Costa County 11.7%

Building Permits: The dollar value of commercial permits issued in the East Bay fell 49.9 percent when compared with the previous period. Commercial building permit values declined throughout the Bay Area during this period, falling most sharply in the Napa region (down 98.1 percent).

Industrial permits were actually up during this time period, primarily due to the East Bay and Vallejo-Fairfield regions. These areas experienced 420.4% and 310.4% increases compared to the previous period.

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East Bay Economic Update

Latest East Bay economic data is in from the East Bay Economic Development Alliance.

East Bay unemployment declined in April (latest complete figures) to 11.4% from 11.9%. California unemployment for the same time period was 12.3%, and the National unemployment rate was 9.5%.

East Bay Commercial building is still taking a pounding, down nearly 60.4% versus the same evaluation period last year. Permits fell most sharply in the Napa region (down 93.2%).

Leaving on some positive news, I was in a networking meeting last week, and a prominent east bay commercial banker remarked that he was aware of a development company beginning new home construction. This was the first real new home construction start that anyone in our group was aware of, and hopefully a sign of good things to come for this area.  

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Private Equity Fights Back

Not a lot of "grey area" regarding Private Equity investors these days.These "masters of the universe", are getting lumped in with the Investment Bankers, and Mortgage Brokers, as prime examples of everything that is broken in our current financial system.

In an effort to combat this image, the Private Equity Council issued a report claiming that companies backed by private equity investments provide jobs for more then six million Americans, or more the five percent of all private sector workers.

Specifically for California, the report cites:
•There are approximately 1,200 private equity-backed companies based in California.
•Private equity-backed companies based in California employ nearly 440,000 workers in the U.S.
•Currently, private equity firms have invested an estimated $125.54 billion in California-based companies.
•There are 140 private equity firms in California.
•The California Public Employees’ Retirement System had $22.7 billion, or 11.6 percent of total assets, invested in its Alternative Investment Management (AIM) Program as of October 31, 2009.
•The California State Teachers’ Retirement System had $16.86 billion, or 12.6 percent, invested in private equity as of December 31, 2009.

To Access Private Equity Employment by State Click (HERE)

Now, I'm the first to point out that the Private Equity Council's data may not be completely independent or unbiased...HOWEVER, at this point any positive additions to California's economy are welcome...

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