Bay Area, California both lose jobs in February as hiring surge halts

— Healthcare employers added 1,800 positions.

— Retailers added 300 jobs.

The tech industry losses were particularly severe in the South Bay, which lost 1,700 tech jobs in February, according to the Beacon estimates. The East Bay lost 700 tech jobs while the San Francisco-San Mateo region shed 500 tech jobs.

Tech companies such as Facebook app owner Meta Platforms, Google, Cisco Systems, Salesforce and Intel have slashed jobs in a quest to operate more efficiently after they staged huge hiring sprees during the two years of remote work resulting from the coronavirus-linked business shutdowns.

The huge staffing reductions for construction workers, including construction sector losses of 1,700 in the South Bay, 1,300 in the East Bay and 1,000 in the San Francisco-San Mateo region are occurring at a time of turmoil for both the residential and commercial real estate industries.

Sky-high interest rates and soaring office vacancies have coalesced to make it difficult to build new offices and apartments. The elevated interest rates make it more costly for developers to obtain and repay construction loans.

On a more hopeful note for local industries, the hotel and restaurant sectors continue to hire in a big way. Lodging and dining operators added 700 jobs in the South Bay, 600 in the East Bay and another 600 in the San Francisco-San Mateo region.

With the end of business shutdowns and travel restrictions, experts believe people are seeking to travel more and dine in restaurants with greater frequency.

Plus, conventions are on the rise. This week, Nvidia staged a conference with a primary theme being the fast-rising artificial intelligence sector, an event that was based in downtown San Jose. The Nvidia event attracted throngs of employees, AI industry leaders and entrepreneurs, which bolstered hotels and restaurants in the downtown district.