Ted Egan, chief economist with the San Francisco Office of the Comptroller, presented a September 2025 economic update to the Small Business Commission, describing a mixed picture for the city's recovery.

Egan said federal data delays (a federal shutdown affected labor-market reporting) meant the office relied on August data and would reissue an updated report when Employment Development Department (EDD) numbers were published. Using the available data, he said total employment for the San Francisco'San Mateo metro division trended down by less than 1% year over year. He highlighted that private health, education, government and information sectors have seen job gains, while leisure and hospitality and retail remain deeply down (nearly 20,000 fewer leisure and hospitality jobs compared with pre-COVID levels).

Egan also presented indicators that point to a gradual recovery: foot traffic and return-to-office measures are trending upward, weekly hotel occupancy is improving though rates lag pre-COVID levels, and apartment asking rents have risen faster than nearly any other city in the country. He said office vacancy is at a post'COVID record high but may be plateauing as transactions pick up and building prices find a floor.

Commissioners asked about conditions in neighborhood commercial corridors versus downtown; Egan said corridors have generally performed better than downtown but results vary by corridor. On the near-term outlook he expressed cautious optimism for the medium term while noting short-term headwinds tied to the national economy and tariff-driven inflation.

Egan's presentation served as an informational briefing for commissioners and did not require a vote.