Report Finds Military Powers 22% of San Diego Economy as Defense Outlays Dip 3%

Overview

• The military supports nearly 357,000 local jobs and contributes $61.3 billion to San Diego County’s economic output, according to the 2025 Military Economic Impact Report.
• Direct defense spending totaled $39.3 billion, including $19.8 billion in contracts, $15.1 billion in payroll, and $4.3 billion in retirement and veterans’ benefits.
• Report authors attribute the decline to federal budget constraints, with local leaders also noting civilian workforce changes such as retirements and separations.
• The study counts roughly 143,000 active-duty, reserve and civilian personnel in the region, with an additional 214,000 jobs supported indirectly through contracting and local business activity.
• Innovation and energy resilience are highlighted through projects like the $42 million Haybarn Energy Reliability Center at Camp Pendleton and new microgrids at Naval Base San Diego.