For the first time in years an annual report shows the defense industry's impact on the region's economy declined since 2024 with more than 16,000 fewer jobs.

This year's was released Wednesday by the nonprofit San Diego Military Advisory Council (SDMAC).

Researchers from the UC San Diego Rady School of Management compiled the report.

The defense industry is still a cornerstone of the region's economy, the report says, but reductions in the federal workforce and less government spending are having a negative impact.

Last year the report showed the defense sector was about 25% of the region's economy. This year, it's dropped to 22%.

There are also 16,524 fewer jobs, the report says. The annual San Diego Military Economic Impact Report says defense dollars account for almost 25% of San

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