Updated: december 2025

Jobs by Industry

Definition: Jobs by industry refers to both the change in employment levels by industrial sector and the distribution of jobs across sectors. This measure reflects the industry trends that affect our region's workers.
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44%

In 2024, 44% of jobs in the San Francisco Bay Area were in professional, business, education or health related services

+146%

The information sector grew by 146% between 1990 and 2024

-36%

The manufacturing sector declined by 36% between 1990 and 2024

Introduction

Which industry sectors are gaining or losing jobs?

The Bay Area employment base is remarkably diverse, with over 3.9 million individuals in 2024 working for thousands of employers across a dozen primary industry sectors. The number of workers in a specific industry sector indicates the relative importance of that industry to the region’s overall economy. Trends over time determine whether an industry’s prominence is growing or shrinking. The Bay Area’s job growth over the past quarter-century can largely be attributed to job creation in the service sector.

Regional Performance

The Bay Area's job growth over the past quarter-century comes primarily from the service sector.

The service sector produces intangible goods – such as services – instead of goods. In 2024, the top three sectors in the Bay Area with the highest number of jobs were all in the service sector: education & health services (940k jobs), professional & business services (800k jobs) and trade, transportation & utilities (530k jobs). In 2024, almost half of all jobs (44%, 1.7 million jobs) in the Bay Area were in the top two service sectors. In 1990, this share was 29% (860k jobs).

The COVID-19 pandemic had a larger impact on some industries than others. For example, jobs in the leisure and hospitality industry decreased by 148k (-33%) between 2019 and 2020, highlighting the immediate impact of the pandemic. However, between 2020 and 2024, jobs in this industry increased by 107k jobs (+36%).

936k

The education & health services sector has the highest number of jobs in the Bay Area at approximately 936k in 2024. This represents 24% of all jobs in the region

+468k

The education & health services sector has had the highest growth in jobs in the Bay Area, adding approximately 468k jobs between 1990 and 2024

Historical Trend for Jobs by Industry

Stacked bar chart illustrating the historical trend in jobs by industry
Notes:

Some records are missing in the source data, see sources and methodology documentation for more information.

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Regional Distribution

The relative distribution of jobs in various industries throughout the Bay Area has somewhat changed over time, with certain industries changing a lot more than others.

Since the early 1990s, the top three industries have consisted of trade, transportation & utilities; education & health services; and professional & business services, but not necessarily consistently ranked in that order.

There are some sectors that have seen declines in total employment and therefore their relative share of jobs in the region. For example, the number of jobs in the finance sector has declined by approximately 20% between 1990 and 2024. In 2024, jobs in financial activities accounted for 5% of all jobs in the region, down from 8% in 1990. Another industry experiencing decline is the manufacturing sector, which has 36% fewer jobs in 2024 than it had in 1990. In 2024, manufacturing accounted for 8% of all jobs in the region, down from 16% in 1990.

8%

of jobs in the Bay Area were in the manufacturing sector in 2024; this number used to be 16% in 1990

13%

of jobs in the Bay Area that were in the trade, transportation & utilities sector in 2024; this number used to be 20% in 1990

Historical Trend for Job Growth by Industry

Multiple line chart showing the historical trend in job growth by industry
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Local Focus

Job growth in the professional and business services sector, one of the pillars of our region’s economy, is increasingly concentrated in San Francisco, San Mateo and Santa Clara counties.

As of 2024, Santa Clara, San Mateo and San Francisco counties have experienced some of the greatest economic benefits from job growth in the professional and business services sector. While the East Bay has also benefited from service-sector job growth, its two dominant industry sectors are trade, transportation & utilities and professional & business services-sectors that have experienced relatively stagnant job growth over the same period.

Agriculture remains an important sector in our region, particularly in Sonoma and Napa counties. These two counties account for over half of all farm jobs in the region.

35%

of all Bay Area professional & business services jobs are in Santa Clara County

31%

of all Bay Area farm jobs are in Napa County

Industry Specialization Breakdown (2024)

Bubble chart depicting industry specialization breakdown in 2024
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Sources & Methodology

Methodology Notes

Quarterly Census of Employment and Wages (QCEW) employment data is reported by the place of work and represent the number of covered workers who worked during, or received pay for, the pay period that included the 12th day of the month. Covered employees in the private-sector and in the state and local government include most corporate officials, all executives, all supervisory personnel, all professionals, all clerical workers, many farmworkers, all wage earners, all piece workers and all part-time workers. Workers on paid sick leave, paid holiday, paid vacation and the like are also covered.

Besides excluding the aforementioned national security agencies, QCEW excludes proprietors, the unincorporated self-employed, unpaid family members, certain farm and domestic workers exempted from having to report employment data and railroad workers covered by the railroad unemployment insurance system. Excluded as well are workers who earned no wages during the entire applicable pay period because of work stoppages, temporary layoffs, illness or unpaid vacations.

The location quotient (LQ) is used to evaluate level of concentration or clustering of an industry within the Bay Area and within each county of the region. A location quotient greater than 1 means there is a strong concentration for of jobs in an industry sector. For the Bay Area, the LQ is calculated as the share of the region’s employment in a particular sector divided by the share of California's employment in that same sector. For each county, the LQ is calculated as the share of the county’s employment in a particular sector divided by the share of the region’s employment in that same sector.

Data are mainly pulled from aggregation level 73, which is county-level summarized at the North American Industry Classification System (NAICS) supersector level (12 sectors). This aggregation level exhibits the least loss due to data suppression, in the magnitude of one to two percent for regional employment, and is therefore preferred. However, the supersectors group together NAICS 11 Agriculture, Forestry, Fishing and Hunting; NAICS 21 Mining and NAICS 23 Construction. To provide a separate tally of Agriculture, Forestry, Fishing and Hunting, the aggregation level 74 data, which is county-level summarized at the NAICS sector level, was used for NAICS codes 11, 21 and 23.

QCEW reports on employment in Public Administration as NAICS 92. However, many government activities are reported with an industry specific code – such as transportation or utilities – even if those may be public governmental entities. Other industry groupings under public ownership are Education and Health Services; Public Administration and Trade, Transportation, and Utilities. With the exception of Education and Health Services, all other public activities were coded as Government/Public Administration, regardless of industry group.

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