OAKLAND — The East Bay job market will cool this year compared with 2016, according to a Beacon Economics forecast about the region’s economy, released Thursday.

During 2017, total East Bay payroll jobs are expected to increase by “at least 1.5 percent,” Beacon Economics projected. That would be a sharp slowdown from the growth of 3.1 percent in 2016, according to seasonally adjusted figures from the state’s Employment Development Department.

Despite the prospects of a slowdown this year, Christopher Thornberg — Beacon’s founding partner and a principal economist with the firm — believes the East Bay economy remains robust. That’s because the two-county region is bumping up against a natural part of the jobs-expansion cycle as employers in the area are having a tougher time filling open positions.

“The East Bay has everything going for it,” said Thornberg. “It’s an economy that is firing on all cylinders right now.”

The East Bay’s 3.1 percent growth last year outpaced the 2.2 percent national rate of job creation, Beacon noted in its report, which it presented Thursday to the East Bay Economic Development Alliance.

Over the 12 months that ended in March, total payroll jobs grew 2.8 percent in the East Bay. That outpaced the growth of 2.5 percent in the San Francisco-San Mateo region and 2 percent in Santa Clara County over the same one-year period, this newspaper’s analysis of EDD data shows.

The once-battered construction industry is becoming the East Bay’s most robust industry, Beacon reported. Over the last two years, construction payrolls have grown 12.9 percent in the East Bay, outpacing all other industries.

“Cities are recognizing the pressing need for more office space and housing,” Beacon reported. “Developers are continuing to take notice of the immense opportunities in the East Bay for residential and commercial developments.”

In 2017, health care commanded the largest share of private sector jobs of any industry in the Alameda County-Contra Costa County area, with 14.4 percent of the payroll jobs in the region. That’s up from 9.9 percent from 20 years ago.

In 1997, manufacturing was the largest private sector industry in the East Bay, with 11.6 percent of the jobs at that time. Manufacturing now has 7.7 percent of all payroll jobs in the area.

Both in 2017 and 1997, government was the single largest employment sector, with a 15.4 percent share of all payroll jobs this year, and 17.8 percent 20 years ago, according to Beacon.

Rounding out the top five private sector industries after health care’s 14.4 percent share: The technology industry, a combination of professional, scientific and technical services and information services and products, had 10.9 percent of all payroll jobs; leisure and hospitality, which includes hotels and restaurants, had 9.9 percent; retail had 9.7 percent; and manufacturing was No. 5 with a 7.7 percent share.

In numerous instances, East Bay residents are commuting to other parts of the Bay Area for work.

“In 2015, roughly 33.1 percent of workers in the East Bay commuted out of the area each day, with San Francisco County and Santa Clara County as the most popular destinations,” Beacon reported.

Due to the skyrocketing home prices in San Francisco and Santa Clara County, along with sharply rising rates for office rents, the East Bay has a significant advantage over those two areas.

But the question remains: Will the East Bay build sufficient housing so the workers being hired in Alameda County and Contra Costa County can find places to live?

“Do you want the East Bay to turn into the country club that San Francisco is, or do you want the East Bay to be a place where everyone can prosper?” Thornberg said.