Defense spending accounts for nearly 25% of San Diego’s economy, according to a new report

An annual report on the military’s impact on San Diego’s economy shows that defense spending as a percentage of the region’s economy increased in 2023 despite a slight decline in overall employment.

Researchers from the San Diego Military Advisory Council (SDMAC) and UC San Diego’s Rady School of Management measured the local impact of government spending on active military personnel, defense contracts and veterans affairs. According to this year’s Military Impact Report, Pentagon and VA spending pumps $56.4 billion into San Diego’s economy.

That’s 23.6% of San Diego’s gross regional product.

Mark Balmert, CEO of the San Diego Military Advisory Council, said the defense industry continues to help drive local economic growth. He added that the report was critical to educating the public.

“We want people to understand that there are a lot of good things that come with being a military town,” Balmert said at a news conference Wednesday.

2023 Military Economic Impact Report

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The report’s data is important for local and state lawmakers, said California State Senator Toni Atkins (D-San Diego). In comments at the report’s release Wednesday at the San Diego Marine Corps Recruit Depot, Atkins said it also shows how defense spending stabilizes the economy.

“Especially in a year like this when California’s resources are a little more limited, our region benefits significantly from the military’s economic contributions to San Diego and I would say the entire state,” Atkins said.

According to the report, there are more than 111,000 active military personnel in San Diego County, accounting for nearly a third of all military-related jobs in San Diego.

According to the report, more than 200,000 local jobs are the result of military contracts. In total, more than 350,000 local jobs are the result of the military, after further accounting for other jobs such as military personnel. B. Civilians employed by the Department of Defense and the VA.

There was a slight decline in contracts and associated jobs compared to last year, the report said, citing the end of pandemic-related emergency procurement contracts.

Researchers found a 0.5% decline in total defense jobs since 2022. Despite these losses, total spending still increased.