Should recent college graduates consider cities outside San Diego?

A new study by payroll-services provider ADP found recent college graduates are having more success in second-tier cities like Raleigh, N.C.

While places like San Diego pay more, the ADP data analyzed by The Wall Street Journal found recent grads may have better success in places with decent wages, higher affordability and more hiring activity.

Based on that criteria, the San Diego metropolitan area was considered the ninth worst place for new grads (out of 55 metro areas). The worst place was the Virginia Beach-Norfolk metro area, primarily because of low wages and a lackluster hiring rate.

Not every new grad can pack up and leave San Diego, because of family obligations or other factors, and there are other reasons to stay here: beaches, outdoor activities and great weather. However, the study did point out getting started in a career somewhere cheaper, with more open jobs, was something to consider.

Question: Should recent local college graduates consider cities outside San Diego?

Economists

David Ely, San Diego State University

YES: Opportunity for professional growth, compensation, cost of living, lifestyle and job openings in their field are all factors a graduate entering the workforce should consider. The likelihood of finding a job with the best set of attributes increases with the geographic breadth of the search. For some graduates, a job in San Diego will be the best fit. But for others, starting their professional careers in a different city will be the optimal decision.

Ray Major, economist

YES: Unfortunately, San Diego is no longer America’s finest city, especially when it comes to finding a job. First jobs are critical because they heavily influence future career paths in terms of industries and occupations one might end up working in. Recent graduates should go where the opportunities are, gain some experience in the field and industry they’re interested in, and then keep an eye out for opportunities to move back to San Diego.

Caroline Freund, UC San Diego School of Global Policy and Strategy

YES: Broadening the search opens a wider range of opportunities, and when you are young is a perfect time to take risks. One of the superpowers of the U.S. used to be geographical mobility, yet mobility has been falling for decades. When people move to thriving areas, they have higher real wages and better long-run career trajectories. Mobility also supports U.S. economic growth and overall employment since there are more workers where they are most needed.

Kelly Cunningham, San Diego Institute for Economic Research

YES: Although difficult to leave San Diego, there may be better opportunities elsewhere. Each individual must consider trade-offs of job prospects and environmental aspects of living. Opportunities to work in one’s chosen field and move on from entry-level work are high considerations. The cost of living, with housing the biggest factor, is much more affordable in other areas, while California retains the highest personal income tax rates in the nation. One must pay to live here.

Alan Gin, University of San Diego

YES: There is a lot to like about San Diego.  But the desirability of San Diego means there is more competition for the limited good jobs and a higher cost of living.  People starting their careers would be advised to be open to opportunities elsewhere, with the thought of returning here when they become established.  That is not to say that economics should be the only consideration, as cultural and policy differences across the country could adversely affect some people.

James Hamilton, UC San Diego

YES: One of the reasons for the high cost of housing here is that many people are willing to pay more to be able to enjoy a richer outdoor life. If you have friends, family, and job connections here, that makes it harder to leave. And for industries like biotech, this is one of the best places to be. But if these factors aren’t so important for you, you could be better off financially trying to locate somewhere else.

Norm Miller, University of San Diego

YES: Finding good mentors and career opportunities matters more than the location, although I fully comprehend filtering out some metros based on personal preferences. My daughter’s asset management job paid the same in Columbus as it did here, with a much lower cost of living and better public schools in affordable neighborhoods. On the other hand, our historically above average appreciation rates have helped offset the upfront cost of housing, if you can somehow get past that hurdle.

Executives

Chris Van Gorder, Scripps Health

YES: Getting started here is challenging for new graduates partly because the cost of living is high in California and San Diego. States in the Midwest and Southeast are developing policies to entice business growth and attract young talent. Elected officials must focus on lowering costs and supporting business growth so recent college grads can stay here. Health care opportunities exist locally, but those will be impacted by recent legislation nationally and in California.

Jamie Moraga, Franklin Revere

YES: San Diego is a great city, but it’s expensive — especially for recent grads starting their careers. They should consider all options, both in and outside San Diego, based on job opportunities, cost of living, and personal goals — not just lifestyle and weather. Other cities may offer more affordability and career growth. To attract, retain and bring back talent, California must reduce regulations, lower taxes and foster a more business-friendly environment.

Phil Blair, Manpower

YES: They have to do what is best for their long-term careers. And keep in mind quality of life. We all get hooked on life in San Diego and forget how different it is in other cities — good and bad. If the ocean and beach are essential to you then staying here might well limit your job options, which can slow down your career advancement. But moving to say, Texas, has all sorts of other burdens.

Bob Rauch, R.A. Rauch & Associates

YES: While San Diego offers a high quality of life, its cost of living ranks among the top 0.4% globally. That can be a tough starting point for recent grads, especially those without substantial savings or high-paying job offers. Smaller and midsized cities may offer better affordability and job prospects. Recent grads in San Diego might find lower rent and living costs, a more favorable job market, and faster career growth opportunities — but come back with skills.

Austin Neudecker, Weave Growth

YES: San Diego’s quality of life is undeniable, but early career budgets can be unforgiving. Light entry-level hiring and record rents mean only top-paid grads gain traction. Exploring other cities can build resumes and savings before returning with additional leverage. If San Diego wants to retain more talent, we need more entry-level roles, faster permitting for workforce housing and transit incentives.

Not participating this week:Gary London, London Moeder Advisors

Have an idea for an Econometer question? Email me at phillip.molnar@sduniontribune.com. Follow me on Threads: @phillip020