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San Francisco is one of the cities in the United States whoseeconomy is growing at an extremely high rate and has even surpassedthat of the entire country. As such, the employment opportunities areimmense considering that the unemployment rate in the United Statesis over 4 percent. For instance, according to the Forbes magazine andother economic partners such as Beacon Economics, the economy of SanFrancisco continues to show improvements due to the various sectorsthat are recording tremendous growth (City data 1). The insurance andthe finance sectors are just some of the sectors that have been saidto record tremendous growth in the last few years. Additionally, themanufacturing industry has also been on the rise hence fueling theeconomy of the city. The economy of the city has made it to beregarded as the financial center or hub of California. As aconsequence, the city has attracted five major banks and variouscompanies and industries such as Weebly, Pacific Gas and ElectricCompany, Twitter and Mozilla. These are just but a few of thenumerous companies that have opened their offices and or headquartersat the city. It is hard to mention San Francisco and fail to mentiontourism. The city has been a center for attraction for tourists fromacross the world. This has been a major source of income for thecity.
The natural location of San Francisco allows it to be the economiccenter in California. The city has a natural landlocked harbor andnumerous ports and boasts of one of the largest airports in theUnited States. This allows the movement of goods and people extremelyeasy hence easing trade. In the West Coast area, the city of SanFrancisco handles nearly 30% of the entire trade in the region. Thekey driver of this city’s economy is trade and shipping. This hasattracted numerous business institutions and financial institutions,as well as industries. Products that are produced include but are notlimited to chemicals, glass, leather, machinery, furniture andclothing (City data 1). There are numerous multinational industriesand financial institutions such as the Pacific Exchange, which is oneof the largest financial institutions that are located in the city.Technology advancement has also been one of the primary drivers ofthe San Francisco economy. The technology in the area has attractedcompanies such as medical science, which focuses on research anddevelopment. Additionally, there are other technologically basedcompanies such as NASA which has stations in the area. These arecompanies that have heavily invested in the area hence creatingemployment and driving the economy forward. Biotechnology has alsobeen a key driver of the city’s economy (Groat 72). Research hasindicated that the almost a third of the employees who work in thebiotechnology industry worldwide are employed in San Francisco. Thisis a clear indication that the city is a center of technology. Theseemployees contribute immensely to the growth of the economy of thecity.
Tourism in San Francisco is another investment that boasts theeconomy in that city greatly. Tourists come from all over the worldto visit various parts in the city. It is stated that tourism is oneof the largest industry in the city and it generates over 6 billiondollars annually from tourist spending. The Music, culture and thefilm portrayals in the city have acted as attractions for tourists.In addition, San Francisco has numerous classic hotels and conferencebuildings. This has attracted leaders from across the world thatholds conferences there. The elaborate hotel industry has the abilityto accommodate numerous people and dignitaries from across the world.San Francisco has some of the main landmarks in California such asthe Golden Gate Bridge and Alcatraz. These attract millions oftourists from across the world. The Golden Gate Bridge is most likelyone of the most photographed iconic landmark in the city. People comeall over the world to view the bridge since it has some historicalinclination. It is evident from research that the bridge is one ofthe largest in the world and it was once named as one of the largestin the world (Groat 66). The tourists who come to visit San Franciscocontribute immensely to the economy of the city. They bring alongforeign currency which they spend on their travel within the city andtheir accommodation as well as the purchases they make.
Another area that attracts numerous tourists in the region is theFisherman`s Wharf. This is an area that is largely known for itsshops and the beautiful setting as well as the fishing activities.Tourists come from across the world to participate in the fishingactivity. There are various places such as Wax Museum where peoplecan visit while at the Fisherman’s Wharf. Cable cars have been aprimary source of attraction in the area (Rosen and Avani 98). Theseare traditional cars which offer transport services to the variousdestinations in the city with a historical touch. It is worthremembering that these cars were being used in the 1870s in the citydue the hills that were apparent in the area where the city wasbuilt. It is clear that the tourism industry in the city is a majoreconomic activity which not only offers income, but also employmentopportunities for the locals. The tourism industry in the city hasalso led to the development of the hotel and the entertainmentindustry hence fueling the economic growth of the city (Groat 107).
The various sectors in the city offer numerous employmentopportunities to the locals and to expatriates. The governmentremains the second highest employer in the city after professionalservice employees which account for 25%. 16% of the employees areemployed in the professional sector. 15% of the employees are in theleisure and hospitality industry which is fueled by the tourismindustry. The presence of numerous employees in the city has pushedthe cost of housing extremely high. Research has indicated that thereare over 50% of the employees who do not reside within the city dueto the cost. They have decided to look for cheap housing elsewhere(City data 1). In this regard, it is clear that the housing industryin the city is also booming and has contributed immensely to the GDPof the city which ranges in the tune of 383 Billion dollars per year.The huge number of employees in the city contributes largely to theGDP through the taxes that they pay to the government.
It is clear that in an area where people have income, thepossibility and the ability to spend are normally high. As a result,the economy of the city runs smoothly. The populace is able to affordthe various goods and services that they require and hence drive theeconomy.
While discussing on the issue of the economy of San Francisco, it isessential to state that the economy has been moving away from thetourism and financial sector and leaning more towards technology,biotechnology, as well as medical research. As stated earlier, thenumerous employees across the world who work in the biotechnologysector are based in San Francisco. Technology jobs in the city havebeen on rise from a mere 1% in 1990 to over 8% in 2013 (Rosen andAvani 72). Major social media companies such as twitter have theirheadquarters in the city. The city was bee hive of activities duringthe dot com boom, as well as during the social media boom. This hasbeen extremely helpful in fueling the economy of the city.
In conclusion, it is clear from the discussion above that the cityof San Francisco has one of the most vibrant economies in California.The city offers numerous employment opportunities to the locals andto international employees. There are numerous industries, financialinstitutions and health institutions, which aid the growth of theeconomy. Technology has also been one of the primary drivers of theeconomy in the city. There are numerous technology companies in thebiotechnology sector, social media and research development (Citydata 1). The presence internationally recognized financialinstitutions in the city have made it the economic hub of California.It is also essential to note that the geographical location of thecity has helped to boast the economy of the city. Transportation onthe ports and on the various airports is smooth and therefore tradeis at the epicenter of the city’s economy.
City data. San Francisco: Economy. Accessed on 21st April,2015 from:http://www.city- data.com/us-cities/The-West/San-Francisco-Economy.html
Rosen, Kenneth T, and Avani A. Patel. The : ACase Study of the Multimedia Gulch. Berkeley, 2013. Print.
Groat, Maurice F. Studies in the Economy of Downtown SanFrancisco: A Staff Report. San Francisco, Calif: San Francisco Dept.of City Planning, 2014. Print.