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Economic Profile

Monterey County is located along a 100 mile stretch of the Pacific Ocean and is bordered by Santa Cruz County to the north, San Benito, Fresno and Kings Counties to the east and San Luis Obispo County to the south. The county is comprised of three distinct sub-regions, the principal residential and business area of the Monterey Peninsula; the prime agricultural lands of the Salinas River Valley which runs almost the full length of the county; and the wilderness region that is found along the coast and mountain region at Big Sur and beyond.

The county’s population has grown 1.5 percent since 2002 and is now estimated at 415,800 persons. The greatest population increase is found in Salinas, the county’s largest city, which has grown from 148,400 in 2002 to 150,300 in 2003. The population count is estimated to reach 591,000 by the year 2020.

In addition to the population growth, the county’s civilian labor force totaled 200,000 employees in 2002. This number indicates a growth of two percent over the 2001 figures. It is important to note that counties like Monterey, where tourism and agriculture are key factors in a region’s employment analysis; the seasonality of these industries heavily influences the unemployment reporting rate. In recent history, unemployment ranged between 9.4 and 10.4 percent annually.

Monterey County has a healthy labor force with both seasonal and year-round workers. The ratio of number of people in the labor force and employment roles have remained constant since 1998, which demonstrates the county’s ability to provide quality employees that meet the needs of the business community. From 1998 through 2002, 12,600 new jobs were added to the county total which includes a gain in new jobs (.02 percent) in 2002 when the state neighboring counties showed dramatic job declines of up to 2.4 percent.

Agriculture is the largest industry in the county and represents more than 21 percent of all employment. The industry experienced a slight decline in 2001 but has regained more than 800 new jobs in 2002.

Government accounts for 18 percent of the county’s total employment with 70 percent of these jobs in local agency/government positions.

Other significant employers include trade, transportation and utilities. These industries gained 200 jobs in 2002 for a total of 25,600 jobs or 16 percent of all employment in the county.

The leisure and hospitality industries include businesses and non-profit organizations in the arts, entertainment, recreation, accommodations and in food service. This category represents 12 percent of the county’s workforce.

Historically, Monterey County’s economy has been centered on agriculture and tourism. Current economic trends include the ongoing development of the U.S. Army’s former Ford Ord site and its transition and reuse for educational, residential, commercial and light industry. Increasing employment is also seen in the service industries which include businesses involved in hospitality, health, legal, engineering and other professional services categories. The county is aggressively addressing the employment needs of business through its expended higher and technical educational institutions and programs in addition to city housing and community development programs.