Item 09 - Biennial Modification to the PY 2021-24 Regional and Local Workforce Plan

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Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 31 V. ENABLING UPWARD MOBILITY FOR ALL CALIFORNIANS The local boards of the Orange RPU support the State Plan’s focus on ensuring that workforce and education programs are accessible for all Californians, especially populations that experience barriers to employment. The region is committed to promoting access for everyone to training and services needed to prepare for careers that offer opportunities for long-term economic self-sufficiency and economic security. A. Working with Businesses that Provide Quality Jobs The Orange RPU is committed to identifying strategies that improve the workforce system, ensuring that it enables economic growth and shared prosperity for both businesses and workers. The California Workforce Development Board defines quality jobs as employment that provide family-sustaining wages, health benefits, a pension, worker advancement opportunities, and collective worker input and jobs that are stable, predictable, safe, and free of discrimination. The local boards are attuned to the pandemic’s increased impact on residents in lower-paying jobs and the increasing national attention given to those in such jobs who face inequality. The RPU and regional partners will continue to work to move unemployed and underemployed individuals, especially those with barriers to employment, into higher-paying jobs with benefits. Before the pandemic, Orange County’s unemployment numbers were historically low. Unfortunately, low unemployment did not mean all Orange County residents were thriving. Based on one adult with no children, the MIT 2023 living wage standard in Orange County is $23.66 an hour. Low-wage workers have suffered the most during the pandemic-induced recession. In 2020, 741,966 of the 1,805,612 jobs (42%) had an average wage of less than $20.00 an hour. Most of these jobs (511,322) were held by minority workers, with Hispanics holding the largest share of these lower-wage jobs (46%). Massive job losses were concentrated among lower-wage retail, hospitality and tourism, and food service workers. Although we have recovered these jobs, there are large numbers employed in areas such as food preparation and serving related occupations (143,899) that make an average of $16.34 an hour. Healthcare Support Occupations has 82,251 jobs as of 2022, with an average wage of $17.40. The boards are committed to identifying career ladders and lattices, allowing upward mobility. The region’s targeted industry sectors show potential for family-sustaining wages but are not immune to offering lower wages. Such jobs comprise a substantial portion of the Orange County regional economy, given its large retail, hospitality, and tourism footprint. While some entry-level occupations in the industry have well-articulated career pathways to a job with self-sustaining wages, each profession provides foundational skills that will better qualify individuals for enhanced employment and income opportunities. Aspen Institute’s work on sectoral workforce development strategies identified two fundamental approaches to helping people connect to better employment: 1) removing barriers to good jobs for low-income people; and EXHIBIT 1