Item 24 - Regional and Unified Local Workforce Plan for PY 2021-24

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family-sustaining wages, health benefits, a pension, worker advancement opportunities, and collective worker input and 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 low-wage jobs and who face increased inequality. The RPU and regional partners work tirelessly 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. But unfortunately, low unemployment did not mean all Orange County residents were thriving. Based on the two hundred and sixty-sixth percentile (266%) of the 2020 Federal Poverty Levels, the self-sufficiency standard in Orange County is $23.89 an hour for a family size of 2. Low-wage workers have suffered the most in this 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. The majority 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 have been concentrated among lower-wage workers in retail, hospitality and tourism, and food service jobs. The region’s targeted industry sectors show potential for family-sustaining wages but are not immune to offering lower wages. Such jobs are a big part of the Orange County regional economy, given its large footprint in the retail, hospitality, and tourism industry. While some of these entry-level occupations in targeted industry sectors have well-articulated career pathways to a job with self-sustaining wages, each of the professions 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 2) improving the quality of jobs in key sectors in which many low-income people work 23. The RPU and regional partners understand the importance of developing strategies that accomplish both. Through industry sector work, the RPU is committed to ensuring that job training is a bridge to more financial stability and not a funnel for low-skill individuals into low- wage occupations. The Orange RPU understands its role in investing in and advocating for quality jobs. The RPU will develop a standard tool for determining job quality to assess what industries, companies, and jobs to target. The RPU will prioritize working with employers who provide quality jobs and those interested in improving their job quality and being part of moving low-wage workers into better- paying positions. The RPU will develop business engagement protocols that focus on engaging businesses that provide quality jobs or have an interest in improving job quality. The RPU will work with industry sector business leaders to ask questions and begin conversations around job 23 Maureen Conway et al., Sectoral Strategies for Low-Income Workers: Lessons from the Field (Washington, DC: Aspen Institute, October 1, 2007), https://www.aspeninstitute.org/publications/sectoral-strategies-low-income-workers-lessons-field/ EXHIBIT 1