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Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan <br /> <br />5 <br /> <br />This issue has likely contributed to the current unprecedented labor shortages, and a <br />challenge businesses are expressing across industries in finding talent to fill open <br />positions. Wages increased as companies worked to entice workers back to work after <br />COVID-19 restrictions were lifted. These wage gains, however, were diminished by the <br />high inflation the economy is experiencing. <br /> <br />The Orange County labor <br />force participation rate <br />reached 62.62% in <br />September. The rate is <br />well below the rate <br />before the pandemic. In <br />2019 the rate was <br />63.47%. It dipped to <br />61.08% in 2020 and even <br />lower in 2021 to 60.83%. <br />These numbers indicate <br />that some workers are still inactive despite momentum in the workforce. This may also <br />be the result of outmigration and workers opting to retire over returning to work. <br /> <br />The pandemic has significantly changed the landscape of work. One of the most notable <br />changes has been the shift toward remote work, which has become more common, and <br />some companies have shifted to permanent remote work strategies. Additionally, the <br />pandemic has accelerated the adoption of digital technologies and automation. <br />Companies rapidly digitized operations and processes to continue to operate during <br />lockdowns and social distancing measures, which accelerated the adoption of technology <br />use. The pandemic has also highlighted the importance of specific industries and <br />occupations, particularly those related to healthcare, logistics, and online delivery. It has <br />also shown the importance of gig economy workers and the need for better protection <br />and benefits. <br /> <br />The county is experiencing demographic <br />shifts with economic and workforce <br />implications. Orange County’s senior <br />population will continue to increase <br />significantly while working-age <br />populations fall. According to the <br />California Department of Finance, <br />estimates show that seniors 65-74 will <br />increase by 17.75%, the 74-84 group by <br />65.7%, and 85 or older will increase by <br />268.7%. The population change will <br />require increased employment in <br />healthcare and other senior service <br />0 50 100 150 200 250 300 <br />0-4 <br />5-19 <br />20-64 <br />65-74 <br />74-84 <br />85+ <br />Orange County Projected Population Change <br />between 2020-20604 <br />Source: CA DOF, Demographic Research Unit, Population Projections, Last update: March <br />2020 <br />EXHIBIT 1