03/28/2024

How California’s Workforce Is Changing and Why State Policy Has to Change With It

INTRODUCTION

California’s workforce has undergone a number of large shifts over the last generation. The profile of who is working today differs in fundamental ways from more than three decades ago, and understanding these changes can inform how state policies could better promote the economic security of workers and their families. This “chartbook” highlights four key trends in how California’s workforce has changed and discusses what they mean for state policy.

PART 1: THE CHANGING FACE OF CALIFORNIA WORKERS

California Workers Are More Diverse Than Ever Before

The face of California’s workforce is changing. Over time, the share of workers who are Latino or non-Latino workers of color has steadily climbed. Today more than one in three California workers are Latino, and another one in seven are Asian or Pacific Islander.

Workers of Color Still Face Substantial Labor Market Challenges

While California’s workforce has become more diverse, many workers of color still face substantial challenges in the labor market. Black and Latino workers face a persistently higher rate of unemployment than do white workers during periods of economic growth and during recessions. In addition, median wages for black and Latino workers have declined over the last 35 years, while the median wage for white workers has climbed. Improving employment and increasing earnings for workers of color will be key to making serious inroads in advancing the well-being of California’s workforce as a whole.

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