economic competitiveness - sa2020...economic competitiveness economic opportunity inßuences so many...

ECONOMIC COMPETITIVENESS

Broadway Street | Vanessa Velazquez Photography

San Antonio is recognized as a leader in business that prospers through innovation in 21st century industries.

San Antonio has a highly qualified and educated workforce and provides economic opportunity for all of its residents. The city fosters entrepreneurship as the engine of economic prosperity. It capitalizes on its unique historical and cultural heritage, as well as local institutions like its military bases, universities, medical centers and international airport system to become a leader in the global economy.

INDICATOR SNAPSHOT

Increase Per Capita Income

Increase Employment in Target Industries

Increase Entrepreneurship

Increase Professional Certificates

Expand STEM Economy

Reduce Unemployment

Source: US Census Bureau American Community Survey 1-Yr Estimate, Table B19301

Increase Per Capita IncomeGoal: Increase the average income per person by 20%

Goal Quantified Baseline (2010) Update (2018)

$25,710 $21,425 (±$466) $24,684 (±$421)

In 2018, San Antonio’s per capita income, the average income earned per person, was $24,684 (±$421), appearing to trend in the right direction. When disaggregated by race, however, per capita income varies widely in San Antonio. For example, for Non-Hispanic White residents per capita income is $39,027 (±$1,377), while for Hispanic residents it is $19,021 (±$462).

ECONOMIC COMPETITIVENESSEconomic opportunity influences so many of San Antonio’s Community Results, from improving community safety to building stronger families. San Antonio has seen recent progress in economic development, including in entrepreneurship and employment in target industries. As the city continues to grow and welcome new residents and businesses, we must ensure that we are supporting and cultivating homegrown talent, too. This requires a community-wide focus on education, professional certificates, and opportunities like internships or apprenticeships.

of SA2020 Partners impact

EconomicCompetitiveness

61%

A full list of SA2020 Partners is on page 8.

49 • SA2020 2019 Impact Report

Per Capita Income by Race/Ethnicity in San Antonio2018Source: American Community Survey 1-Year Estimates. Table B19301 B-I

Note: Margins of error for American Indian/Alaska Native and Native Hawaiian/Pacific Islander are high because of the small sample size.

Per capita income estimates the earning power of each individual, but this means that individuals who are making significantly more in a community can skew the number and mask disparities. Per capita income, then, should be looked at alongside college attainment, employment and underemployment, as well as income segregation. Another indicator that can help show the economic development of a community is median household income. Because this measure accounts for all people in a household over the age of 15 that are employed, median household income can help compare neighborhoods’ quality of life and reveal a cross-section of market disparities, such as household income in relation to median home prices. In San Antonio, according to the 2019 American Community Survey (ACS), median household income in 2018 was $49,024, slightly lower than 2017 when it was $51,157.

For this report, we’ve also disaggregated San Antonio’s median earnings by race/ethnicity. These are 1-year 2018 estimates for median earnings among full-time, year-round workers. Data represent earnings before taxes and other deductions and include any overtime pay, commissions, or tips usually received. Median earnings show that Non-Hispanic White workers make $37,313 (±$2,338), while Hispanic workers make $26,268 (±$649).

While race/ethnicity shows disparities in media earnings, disaggregating the data further by sex shows the work still needed to achieve equitable wage distribution. Males workers make over $4,500 more than female workers.


San Antonio Median Earnings Among Full-Time, Year-Round Workers by Race/Ethnicity2018

San Antonio Median Earnings Among Full-Time, Year-Round Workers by Sex2018

Source: American Community Survey 1-Year Estimates. Table B20017

Source: American Community Survey 1-Year Estimates. Table B20017

A target industry, or sector, is a business activity pursued by an economic development organization, generally because they are the segments of the economy where competitive advantages exist, including growth. The average number of people employed in target industries has been on a steady incline since 2010, even meeting the 2020 target in 2014. For this indicator, SA2020 measures Advanced Manufacturing (specifically aerospace and transportation), Healthcare and Biosciences, and Information Technology/Information Systems (IT/IS).

With 123,152 employees in 2018, Healthcare & Biosciences led the target industries, followed by IT/IS with 16,803 employees, and Advanced Manufacturing with 11,521 employees. The following graph shows the current percentage of jobs in each of these industries.

Source: Bureau of Labor and Statistics

Increase Employment in Target IndustriesGoal: Increase employment by 10%


132,776 employees 120,705 151,476

Per capita income should also be compared against the community’s living wage calculation. Living wage takes into account the estimated cost of living in a particular community. MIT’s Living Wage Calculator shows that in Bexar County, for example, a single adult with no children should be making at least $11.18/hour, or an annual gross salary of $23,254. In early 2019, United Way of Texas released a study of financial hardship using a framework that can help measure and understand the growing number of households that do not earn enough income to afford basic necessities, like housing, childcare, food, transportation, and health care. This population, with income above the Federal Poverty Level (FPL), but still not high enough for basic necessities is referred to as ALICE (Asset Limited, Income Constrained, Employed). Though the data from United Way’s report is from 2016, it shows that the poverty rate in Bexar County was approximately 16.8% while the ALICE population was 40.1%.

• To learn more about Bexar County’s living wage calculation, visit livingwage.mit.edu/counties/48029.

• To learn more about ALICE, visit uwtexas.org/alice-texas.LEARN MORE


San Antonio Median Earnings Among Full-Time, Year-Round Workers by Race/Ethnicity & Sex2018Source: American Community Survey 1-Year Estimates. Table B20017

Information Technology/Information Systems Industry by Job2018

Advanced Manufacturing Industry by Jobs2018Source: Bureau of Labor and Statistics


The San Antonio Economic Development Foundation (SAEDF) currently pursues the following sectors: Aerospace/Aviation, Financial Services, Information Technology/Cybersecurity, Life Sciences/Healthcare, Advanced Manufacturing, New Energy, and Military/Defense. As it is currently undergoing a regional economic development assessment, the SAEDF could revise target industries for the coming years. While we has met the 2020 goal, the broader implication for this indicator includes developing homegrown talent, in addition to recruiting talent. This is why this indicator must be understood alongside San Antonio's goals of increasing college attainment, increasing professional certificates, increasing per capita income, and, in the longer term, reducing poverty.


Healthcare & Biosciences Industry by Job2018Source: Bureau of Labor and Statistics

CAST Tech | Vanessa Velazquez Photography


Source: US Census Bureau. Longitudinal-Employer Household Dynamics Program (LEHD), Origin-Destination Employment Statistics (LODES) Data

Increase EntrepreneurshipGoal: Increase jobs in new firms by 15%


21,505 employees 18,700 employees 23,114 employees

Entrepreneurship was originally captured as business stars, but the Kauffman Index, which tracks this, is not updated frequently enough for an annual report. This year, SA2020 adjusted the measure to capture the number of employees in firms that are less than two years old. This helps us compare employment in new businesses to employment in target industries, as well as green and creative industries. For example, in 2017, green industries accounted for 6,624 jobs compared to 23,114 employees in startup firms. Employment in startups has continued to account for approximately 4% of all private jobs in San Antonio since 2012. As private jobs have increased, so, too, have jobs in these startups.

In 2018, the average number of jobs created by Texas startups in their first year was 5.74.

Source: Kauffman Index

Private Jobs and Jobs in Firms Less Than 2-Years-Old in San Antonio2012-2017Source: US Census Bureau, On-TheMap Application, https://onthemap.ces.census.gov

Research shows us that while the total number of U.S. businesses declined from 2007-2012, Latino-owned business grew by nearly 46% (Stanford Graduate School of Business, Latino Entrepreneurship Initiative, 2018. State of Latino Entrepreneurship). The rate of new Latino entrepreneurs outnumbers other races by nearly two-to-one (Kauffman Index). In a city that is 64% Latino, it is important to understand how entrepreneurship can drive economic competitiveness.

• The Kauffman Foundation has a focus on entrepreneurship, providing resources and research to help start and grow businesses. More information can be found at kauffman.org/what-we-do/entrepreneurship.

• Each year, San Antonio celebrates San Antonio Entrepreneurship Week, produced by Launch SA. Visit saew.org.

LEARN MORE


Source: Integrated Postsecondary Education Data System (IPEDS)

Increase Professional CertificatesGoal: Increase professional certificates attained by 10%


8,569 certificates 7,790 certificates 6,929 certificates

Knowing that 65% of jobs will require a certificate or degree beyond a high school diploma by the year 2020, this indicator has prioritized helping homegrown talent gain the skills they need to get jobs in San Antonio’s growing industries. We still do not see certificate attainment growth at the rate we need to reach the 2020 goal. Of the 6,929 certificates attained in 2018, 44.7% were in Health Professions and Related Clinical Services. As this is the target industry with the most jobs—123,152 employees as noted earlier in this section—this data shows a targeted approach to connecting homegrown talent to industries with employment opportunities.

At the same time, this indicator requires us to better understand the access afforded by different institutions—public, private, nonprofit, and for-profit—the range of debt incurred by students and workers in pursuit of a better quality of life, and the economic sustainability of that debt given the average annual wages for jobs that require a certificate.

Medical/Clinical Assistants, for example, made up 801 of the certificates attained in Health Professions and Related Clinical Services, all from private education institutions where the annual tuition ranges from $820 at The Healthcare Institute to $25,000 at The College of Health Care Professions San Antonio (College Tuition Compare, 2019). Licensed Practical and Licensed Vocational Nurses made up 662 of the certificates attained in Health Professions and Related Clinical Services. Eighty-seven percent of these certificates were granted by Galen College of Nursing, National American University, and St. Philip’s College where annual tuition was $29,330, $10,944, and $2,820 (in-state) in 2019 respectively. According to the Q2 2019 SA Works Jobs Report, the average annual wage is $31,100 for Medical/Clinical Assistance and $45,700 for Licensed Practical and Licensed Vocational Nurses.

Better understanding student loan debt and annual wages for jobs that require a certificate is important for ensuring San Antonio’s workforce is highly qualified and has access to economic opportunity. According to the Federal Reserve Bank of Dallas Report on Consumer Credit Trends for Bexar County, student loan delinquency increased from 5.8% in 2003 to 13.1% in 2018, the largest increase among urban counties in Texas.

Overall, in 2018, St. Philip’s College, San Antonio College, and Southern Careers Institute- San Antonio produced the most professional certificates at 13.6%, 13.3%, and 10.7% respectively. The majority of professional certificates were attained by female students at 58%.

Source: Integrated Postsecondary Education Data System (IPEDS)

Approximately 46% of students’ race/ethnicity was not captured and cannot be analyzed with any certainty.

Certificate Attainment by Sex2018



Reduce UnemploymentGoal: Decrease the annual average citywide unemployment rate by 50%


3.5% 7.0% 3.3%

Although San Antonio’s unemployment rate has continued to decline year-over-year, even lower than Texas’ own unemployment rate of 3.8%, meeting the 2020 goal in 2017 and continuing to decline this year, this indicator captures only those individuals who are actively seeking work. People with criminal conviction histories, those caring for children without support, people living with mental health, substance abusers, older people experiencing age discrimination, and those who were unable to secure a job after layoffs are among those whose unemployment experience are likely not reflected in the unemployment rate.


Expand STEM EconomyGoal: Double the percentage of total employment in STEM occupations


16.4% 8.2% 11.0%

STEM includes Science, Information Technology, Engineering, and Mathematics careers. While the San Antonio Metropolitan Statistical Area (MSA) STEM economy has steadily expanded, we are not increasing at the rate we need to in order to reach the 2020 goal. In 2018, 49% of all STEM jobs were for healthcare practitioners and technical occupations. Registered nurses had the highest total employees of all STEM occupations at 18,160 or 16.3% of jobs. The computer and mathematical operations positions accounted for 25% of the total STEM economy, while architecture and engineering accounted for 13%.

• SA Works, a program of the San Antonio Economic Development Foundation, produces their jobs report to provide a snapshot of hiring activities, education and skill requirements, and wages associated with job postings in the San Antonio Metropolitan Statistical Area (MSA). Read their Q2 2019 Report at sanantonioedf.com/media/sa-works-q2-2019-jobs-report.

• The Federal Reserve Bank of Dallas published a statewide report on consumer credit in 2019. That report can be accessed online at dallasfed.org/cd/cct/19ccttx.aspx.

LEARN MORE

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