REGIONAL PLAN
ORANGE REGIONAL PLANNING UNIT
2023 BIENNIAL
MODIFICATION TO THE
Program Year 2021-2024
Orange Regional Planning Unit
Contact: Annette Kelly-Whittle, Regional Organizer
Phone: (909) 362-7082
Email: [email protected]
Anaheim Workforce Development Board
Contact: Marco Lucero
Phone: (714) 765-4341
Email: [email protected]
Orange County Workforce Development Board
Contact: Carma Lacy
Phone: (714) 480-6420
Email: [email protected]
Santa Ana Workforce Development Board
Contact: Deborah Sanchez
Phone: (714) 565-2621
Email: [email protected]
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
TABLE OF CONTENTS
I. INTRODUCTION AND OVERVIEW .......................................................................................................... 1 II. ANALYTICAL OVERVIEW OF THE REGION .............................................................................................. 4 A. Analysis of Employment and Unemployment Data .......................................................................... 8 B. Analysis of the Educational and Skill Levels of the Workforce, the Current Needs of Employers in the Region, and Relevant Skill Gaps ........................................................................................................ 14 C. Analysis of Industries and Occupations with Existing and Emerging Demand ............................... 19 III. REGIONAL INDICATORS ............................................................................................................... 21 A. Regional Indicator and Associated Outcomes and Metrics ............................................................ 21 IV. FOSTERING DEMAND-DRIVEN SKILLS ATTAINMENT....................................................................... 25 A. In-Demand Industry Sectors for the Region ................................................................................... 25 B. Sector Strategies and Other Industry-Focused Initiatives .............................................................. 28 C. Strategies to Communicate with Regional Employers .................................................................... 30 V. ENABLING UPWARD MOBILITY FOR ALL CALIFORNIANS .................................................................... 31 A. Working with Businesses that Provide Quality Jobs ....................................................................... 31 B. Shared Target Populations and Targeted Service Strategies .......................................................... 32 C. Equity and Ensuring Equal Access to Training and Services ........................................................... 33 VI. ALIGNING, COORDINATING, AND INTEGRATING PROGRAMS AND SERVICES ................................ 35 A. Regional Service Strategies ............................................................................................................. 35 B. Regional Administrative Cost Arrangements .................................................................................. 36 VII. PRIORITY CONSIDERATIONS FOR PROGRAM YEARS 2021-24 ......................................................... 36 VIII. APPENDICES .................................................................................................................................... 40 A. Stakeholder and Community Engagement Summary (Attachment 1) ........................................... 41 B. Public Comments Received that Disagree with the 2023 Biennial Modification to the PY 21-24 Regional Plan (Attachment 2) ................................................................................................................. 44 C. SIGNATURE PAGE (Attachment 3) ...................................................................................................... 45
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
1 I. INTRODUCTION AND OVERVIEW
With the passage of the Workforce Innovation and Opportunity Act (WIOA) of 2014, Congress moved the national workforce system in a new direction regarding how to approach economic and labor market demands. While establishing local workforce areas over the last four decades has always considered local labor markets, WIOA recognizes that economies tend to be regional and may extend beyond the political boundaries that define local areas. WIOA’s recognition of regional economies led to California’s establishment of Regional Planning Units (RPUs), which represent groups of local workforce areas that work collaboratively to develop strategies reflecting the regional economic needs of businesses and the workforce.
In accordance with federal and state guidance, t he Orange Regional Planning Unit has developed a four -year Regional Plan to guide strategic initiatives throughout Program Years (PY) 2021-24, which cover June 1, 2021, through June 30, 2025. WIOA requires a Biennial Modification to the Regional Plan. This 2023 version of the Plan serves as the required update and, once approved by state officials, will become the official version of the PY 21-24 Regional Plan from July 1, 2023, through June 30, 2025.
The Orange Regional Planning Unit
The Orange Regional Planning Unit (RPU) is comprised of the three local Workforce Development Boards (WDBs) serving 34 cities and all unincorporated areas in Orange County. The RPU includes the Anaheim Workforce Development Board, which serves the City of Anaheim, the Santa Ana Workforce Development Board, which serves the City of Santa Ana, and the Orange County Workforce Development Board, which serves the remaining 32 cities and the unincorporated areas of Orange County.
Orange County is the third- most populous county in California (3,162,245 people in 2022)
1 and the sixth-most populous in the nation. Orange County’s population declined from 3,169,542 in 2022 and is projected to decrease by 17,537 over the next five years2.
This decrease reflects an outmigration brought about by rising costs in the region, including housing costs which are among the highest in the state. This can make it difficult for many young people and families to afford to live in Orange County.
Regional Plan Content
WIOA prescribes content for regional plans, which focus principally on the region's labor market, economic conditions , growth industries , and other promising sectors, and how the local workforce development system responds to these factors through sector-based career pathway strategies. WIOA -required local plans supplement the mandatory
1 California Department of Finance, Demographic Research Unit 2 Lightcast, 2021, https://analyst.lightcast.io/.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
2 elements of the regional plan by describing how the workforce system partners collaborate to develop and implement services that meet the unique needs of job seekers and bus inesses in the region. Other required r egional plan content, some unique to California, includes regional indicators of success, job quality, and strategies promoting equity.
Development of the Regional Plan and Its 2023 Modification
After the implementation of WIOA, an initial four-year plan was developed for the region, which covered PY 2017- 20. It was updated in 2019 in accordance with statutory requirements. In response to guidance published by state officials in September 2020, Orange RPU representatives began to prepare a new plan for PY 2021-24. However, the context for this planning was unprecedented, as the COVID-19 pandemic was still in its early stages before the widespread availability of vaccines and the reopening of businesses and communities. The PY 21- 24 Orange RPU Regional Plan reflects the circumstances under which it was developed, highlighting the immediate and severe impacts and limitations resulting from the pandemic, along with various uncertainties regarding the economy, labor market, and workforce participation. The 2023 Biennial Modification to the PY 21- 24 Regional P lan has been developed under far different circumstances than the original version. As such, RPU leadership has been able to address regional approaches and initiatives from a clearer vantage point, where reopening and recovery characterize the regional economic and community landscape.
The original PY 21-24 Regional Plan and this 2023 Modification have benefitted from the intensive review of regional collaboration among the three local boards and input by workforce system partners and other stakeholders. Community input during the 2020/21 process used to develop the Plan led to discussions about the differences between the North and South Orange County communities. For some, the perception of South Orange County is one of affluence with great beaches, schools, and upscale amenities. While affluent areas exist in South Orange County, some vulnerable communities and families live below the federal poverty line. Also noted during these discussions , South County residents have access to fewer community resources and service providers than central and north county areas. As described below, ten of the eleven cities with disadvantaged census tracts are in North Orange County.
Impact of the Pandemic on Businesses and Workers
Orange County experienced several years of job growth and economic vitality, resulting in record-low unemployment rates before the COVID -19 pandemic struck in early 2020.
The pandemic derailed this long growth streak. The long -term social and economic impacts of this stall in economic growth remained to be seen when the Regional Plan was being developed in December 2020 and early 2021. As the region has recovered and transitioned to the endemic phase of the coronavirus, the economy is again characterized by many pre-pandemic conditions, including full employment and growth in key sectors .
However, many community members and businesses still feel the social and economic Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
3 hardship and disruptions that ensued during the height of the pandemic as they struggle to regain footing. The county experienced widespread job loss and economic hardship due to the pandemic, with many small businesses closing permanently.
The COVID -19 pandemic and the resulting economic fallout have disproportionately impacted specific populations and communities. The impacts remain particularly prevalent among Black people, Latinos, and other people of color. Additionally, the virus has disproportionately affected communities of color , with higher infection and death rates. The pandemic exacerbated existing inequalities and economic disparities, highlighting the need for equitable policies, programs, and services that support the most vulnerable populati ons and disinvested communities to address issues that include disparities in access to healthcare, economic impact, and education. In Orange County, census tracts identified as “ disadvantaged” by the California Environmental Protection Agency are located in the eleven Orange County cities of Fullerton, Anaheim, Santa Ana, Garden Grove, Westminster, Stanton, Lake Forest, Huntington Beach, Costa Mesa, Placentia, Buena Park.
The following economic and demographic analyses highlight the immediate and early impacts of COVID-19 on Orange County and subsequent recovery, along with projections for the region throughout the period addressed by the 2023 Biennial Modification to the PY 21-24 Orange RPU Regional Plan.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
4 II. ANALYTICAL OVERVIEW OF THE REGION
There is no question that the COVID -19 pandemic wreaked havoc on the region’s communities, labor market, and economy. The education system, with many schools closed for in- person instruction schools adapted to new ways of teaching and learning.
Many schools moved to remote or online learning during the pandemic. Schools have reopened, and many continue to offer hybrid programs where students alternate between in-person and online instruction. However, the disruption in high er education is still felt with low enrollments. California's community college enrollments have reached the lowest rate in three decades. Since 2019, enrollment at over 116 campuses has dropped by an estimated 300,000 students, a drastic decrease of 18%. The four O range County Community College Districts have seen a reduction in the student count in the Spring of 2022 by 43,732 compared to the same semester in 2019.
Economic factors will likely continue influencing student decisions amid rising inflation, the possibility of a recession, and California’s high cost of living . Finances and family responsibilities often take precedence over education for low -income families. A survey conducted by the RP Group, a nonprofit research center, of former California community college students found that one-third haven’t re-enrolled because they’ve prioritized work.
At the same time, 22% said they have prioritized taking care of family or other dependents. Another 29% said they struggled to keep up with their classes
3. Orange County’s Gross Domestic Product (GDP) took
a hit in 2020, dropping to 222,683,756. 4 Orange
County’s economy ranked 3 rd in California and 8 th
nationally in 2021 based on its GDP. Orange County
has employed 1,598,700 in nonfarm jobs as of
December 2022. The median household income was
$85,400 in 2018, $25,100 above the national average.
5 A little over a year after the COVID-19 pandemic began, economists and other observers noted an increase in the job quit rate, as measured by the U.S. Bureau of Labor Statistics (BLS) Job Openings and Labor Turnover Survey (JOLTS) program. While JOLTS recorded a seasonally adjusted quit rate of 2.4% in the second month of the program’s existence (January 2001), this rate was not surpassed until March 2021, when it reached
2.5 percent. The rate rose to 2.8% in April 2021, then 3.0% in December 2021
6. The rise
in the quit rate has been called the “Great Resignation,” with many popular press articles speculating why individuals have become more willing to leave their current employers.
The fact that the labor force participation rate remains below its pre- pandemic high suggests that some who quit their jobs found new jobs, and others exited the labor force.
3 Statewide Covid-19 Impact Surveys of Students and Employees 4 “GDP: U.S. Bureau of Economic Analysis (BEA).” GDP | U.S. Bureau of Economic Analysis (BEA), www.bea.gov/data/gdp. 5 Lightcast, 2021, https://analyst.lightcast.io/.
6 U.S. Bureau of Labor Statistics (bls.gov)
Year GDP
2017 $ 247,314,645
2018 $ 225,920,029
2019 $ 230,680,258
2020 $ 222,683,756
2021 $ 238,228,949
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
5 This issue has likely contributed to the current unprecedented labor shortages , and a challenge businesses are expressing across industries in finding talent to fill open positions. Wages increased as companies worked to entice workers back to work after COVID-19 restrictions were lifted. These wage gains, however, were diminished by the high inflation the economy is experiencing.
The Orange County labor
force participation rate
reached 62.62% in
September. The rate is
well below the rate
before the pandemic. In
2019 the rate was
63.47%. It dipped to
61.08% in 2020 and even
lower in 2021 to 60.83%.
These numbers indicate
that some workers are still inactive despite momentum in the workforce. This may also be the result of outmigration and workers opting to retire over returning to work.
The pandemic has significantly changed the landscape of work. One of the most notable changes has been the shift toward remote work , which has become more common, and some companies have shifted to permanent remote work strategies. Additionally, the pandemic has accelerated the adoption of digital technologies and automation.
Companies rapidly di gitized operations and processes to continue to operate during lockdowns and social distancing measures, which accelerated the adoption of technology use. The pandemic has also highlighted the importance of specific industries and occupations, particularly those related to healthcare, logistics, and online delivery. It has also shown the importance of gig economy workers and the need for better protection and benefits.
The county is experiencing demographic
shifts with economic and workforce
implications. Orange County’s senior
population will continue to increase
significantly while working -age
populations fall. According to the
California Department of Finance,
estimates show that seniors 65- 74 will
increase by 17.75%, the 74-84 group by
65.7%, and 85 or older will increase by
268.7%. The population change will
require increased employment in
healthcare and other senior service
0 50 100 150 200 250 300
0-4
5-19
20-64
65-74
74-84
85+
Orange County Projected Population Change
between 2020-20604
Source: CA DOF, Demographic Research Unit, Population Projections, Last update: March 2020
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
6 occupations. The shrinking working-age population could impact economic prosperity and cause more challenges for employers filling open positions.
Ethnic diversity in Orange County is high. The national average for an area the size of Orange County is
1,289,103 racially diverse people, while there are 1.95 million in Orange County.
7 Orange County’s diversity is
projected to continue to grow through 2060. Whites
(39%) and Hispanics
8 (36%) make up the largest
percentage of the Orange County population. White
population declined by 8% between 2017 and 2023. 9
Growing diversity will increasingly be a key workforce
and economic development advantage for Orange County. Diversity often creates an environment where exchanging ideas, strategies, and viewpoints fuel s innovation and entrepreneurship, contributing to sustained economic success. Racial diversity challenges local education providers and workforce development to support English learners’ success by improving program support and creating innovative programs such as vocational ESL programs. Non -English speakers represent 45.5% of Orange County residents, which is higher than the national average of 21.9%. In 2018, Spanish was the most common non- English language spoken, with 24.8% of Orange County residents being native Spanish speakers. Vietnamese (6.44%) and Mandarin (2.94%) are the second and third most common languages.
10 Many diverse populations, low-income communities, communities of color, and immigrant communities experience disproportionate economic and social impacts due to systemic inequalities. These include limited access to education, employment opportunities, healthcare, higher poverty rates, unemployment, and underemployment. Additionally, these communities are more vulnerable to the impacts of natural disasters like COVID - 19, environmental pollution, and other forms of environmental injustice. The pandemic has disproportionately affected these communities, with higher rates of illness and death among people of color. Many within this population have been hit harder by the economic downturn.
Industry employment, including self -employment, private household workers, and farm and nonfarm jobs in Orange County , is projected to reach 1,890,300 by 2028, a 7.2% increase over the ten-year projection period of 2018 to 2028. Eleven of the 13 nonfarm industry sectors are projected to grow during this period.
7Lightcast, 2021, https://analyst.lightcast.io/.
8 Lightcast, 2021, https://analyst.lightcast.io/, Hispanic population includes all races that identify as Hispanic. 9 Lightcast, 2021, https://analyst.lightcast.io/.
10 Bureau, US Census. “American Community Survey Data Releases.” The United States Census Bureau, 31 July 2020, www.census.gov/programs-surveys/acs/news/data-releases.2018.html. 39%
34%
22%
2% 3%
Racial/Ethnic Breakdown 2020
White
Hispanic
Asian
Black
Other
Source: LIGHTCAST Labor Market Analytics, 2021
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
7 Total nonfarm jobs are projected to gain 118,000 jobs by 2028. Significant job growth is projected in four industry sectors. Educational, health services, and social assistance are expected to gain 38,900 jobs, with 18,400 projected to be in ambulatory health care services a nd 34,300 in health care and social services. Professional and business services are projected to add 29,500 jobs. In 2020, leisure and hospitality were projected to grow by 12.9%, adding 27,400 jobs . The growth projection has decreased to 8.8% , adding 19,600 jobs. Construction projections also have fallen, with a projected increase of 6,700 jobs by 2028 instead of 19,000 jobs by 2026.11
The industry sectors that added the most jobs between 2020 and 2023 are represented in the chart below.
Jobs & Growth
NAICS Description 2020 Jobs 2023 Jobs 2020 - 2023 Change 62 Health Care and Social Assistance 191,913 215,168 23,255 72 Accommodation and Food Services 131,918 145,039 13,121 56 Administrative and Support and Waste Management and
Remediation Services 140,387 151,255 10,868
55 Professional, Scientific, and Technical Services 128,559 136,465 7,906 23 Educational Services 27,682 32,761 5,079
Source: LIGHTCAST 2023
Orange County is a thriving hub for medical device companies and cutting-edge industry sectors, including life sciences, information technology, digital arts and media, and
11 Labor Market Information, EDD, 2021, www.labormarketinfo.edd.ca.gov -3,800
1,600
2,300
3,000
3,400
4,200
5,400
6,700
7,400
19,600
29,500
34,300 4600
-10,000 -5,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Manufacturing
Wholesale Trade
Other Services (excludes 814-Private Household Workers) Information
Retail Trade
Transportation, Warehousing, and Utilities
Government
Construction
Financial Activities
Leisure and Hospitality
Professional and Business Services
Educational Services (Private), Health Care, and Social Assistance Growth by Industry Sector
Source: EDD Labor Market Information
Health Care and Social Assistance
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
8 advanced manufacturing. It is also known for its growing ecosystem of entrepreneurs hip and innovation. Many Southern California startups concentrate on virtual and augmented reality, cybersecurity, biomedical science, bioengineering, medical imaging, medical device, and environmental health technologies . Over the next several years, Ora nge County is poised to be at the center of emergent industries based on educational and intellectual assets in the region. The county’s most robust traded clusters with a high employment specialization in the area are medical device manufacturing (US Ranking 1), lighting and electrical equipment manufacturing (US Ranking 2), apparel manufacturing (US Ranking 3), information technology and analytical instruments manufacturing (US Ranking 5), and financial services (US Ranking 6).12
A. Analysis of Employment and Unemployment Data
Unemployment as of December 2022 is at 2.5% , which is lower than the pre- pandemic levels. Orange County had a positive economic outlook before the impacts of the COVID- 19 pandemic. In January 2020, Orange County had an unemployment rate of 2.9%, the lowest in Southern California. In the preceding 12 months, the county’s unemployment rate had not exceeded 3.1%. Before California’s first statewide stay-at-home order was issued in March 2020, closing all nonessential businesses and restaurant dining, the unemployment rate stood at 2.8% in February of that year. The economic disruption from COVID-19 resulted i n steep job losses, with the unemployment rate quadrupling at its peak of 15.5% in May 2020, the highest unemployment rate ever recorded for Orange County. The rates slowly declined to 7.7 % in November 2020 and remained at 7.7% in December 2020 when regional stay -at-home orders went back into effect. This rate compares with an unadjusted unemployment rate of 8.8 percent for California and 6. 4 percent for the nation during the same period.
13 12 “U.S. Cluster Mapping: Mapping a Nation of Regional Clusters.” U.S. Cluster Mapping | Mapping a Nation of Regional Clusters, www.clustermapping.us/.
13 Labor Market Information, EDD, 2021, www.labormarketinfo.edd.ca.gov/data/lmi-by-subjects.html.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
9 14
The unemployment rate is 2.5% as of December 2022, below the pre-pandemic level of
2.8% from February 2020. Unemployment rates sharply fell between January 2022 to May 2022. In June, the levels increased and have fluctuated slightly since.
15 14 Labor Market Information, EDD, 2023, Local Area Unemployment Statistics Orange County 15 Labor Market Information, EDD, 2023, Local Area Unemployment Statistics Orange County
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
10 Concentrated job loss in hospitality and tourism stung more sharply during the pandemic in the Orange County region due to its economic dependence on tourism. In 2019, a record 50.2 million travelers visited Orange County, spending $13.0 billion .16 However, with the sustain ed clos ure during the pandemic of major tourism sites, especially Disneyland Park, the leisure and hospitality industry and surrounding cities remain heavily impacted. The percentage of unemployment by industry sector showed a grim picture for industries that rely heavily on tourism. As of November 2020, retail trade had the highest unemployment numbers at 16,063, and accommodation and food services had 10,815 unemployed. Other industries with high numbers of unemployment include h ealthcare and social assistance (11,628), manufacturing (11,215), and construction (9,371). 17 16 Orange County Visitors Association, 2019, Orange County Visitors Association 2019-2021 Destination Marketing Plan, www.travelcostamesa.com/visittheoc/wp-content/uploads/2019/08/Marketing.pdf. 17 Lightcast, 2021, https://analyst.lightcast.io/.
0%
1%
5%
11%
5%
11%
5%
10%
0%
3%
1%
2%
4%
2%
16%
3%
11%
9%
0%
0%
0%
0%
2%
4%
14%
2%
13%
4%
10%
1%
4%
2%
2%
2%
5%
12%
4%
10%
8%
0%
1%
1%
0% 5% 10% 15%
No Previous Work Experience/Unspecified
Government
Other Services (except Public Administration)
Accommodation and Food Services
Arts, Entertainment, and Recreation
Health Care and Social Assistance
Educational Services
Administrative and Support and Waste…
Management of Companies and Enterprises
Professional, Scientific, and Technical Services
Real Estate and Rental and Leasing
Finance and Insurance
Information
Transportation and Warehousing
Retail Trade
Wholesale Trade
Manufacturing
Construction
Utilities
Mining, Quarrying, and Oil and Gas Extraction
Agriculture, Forestry, Fishing and Hunting
Percent of Unemployment by Industry Sector
November 2020
% of National Unemployment % of Regional Unemployment
Source: LIGHTCAST Labor Market Analysis, 2021
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
11 The leisure and hospitality industry has rebounded, recovering all jobs lost during the pandemic. However, subsector unemployment in retail trade (11%) remains high.
Construction (14%) and m anufacturing (13%) are other Orange County industries with high unemployment rates above the national average.
The pandemic -induced recession caused a loss of 267, 400 nonfarm jobs between February and April 2020 in Orange County. The employment loss between March and April of 2020 alone was 225,800, the largest ever recorded in a single month. All industry sectors experienced declines between February and April, but leisure and hospitality (down 102,800) accounted for 38 percent of the total nonfarm job loss during this period
18. Most of the decline was between March and April, with a loss of 90,300 jobs. Seventy - seven percent of the drop occurred in accommodation and food services (down 70,300 jobs), led by decreases in food serv ices and drinking places (down 59,800 jobs). Other
18 Labor Market Information, EDD, 2023, Orange County monthly industry employment
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
12 significant drops during this period include arts, entertainment, and recreation, which fell by 20,000 jobs. Trade, transportation, and utilities decreased by 31,400 jobs, with retail trade accounting for 66 percent of the decline (down 20,800 jobs). Wholesale trade dropped by 8,800 jobs, and transportation, warehousing, and utilities decreased by 1,800 jobs. Professional and business services declined by 29,200 jobs. Administrative and support services, which includes temporary help firms, dropped by 18,900 jobs. 19 Pandemic Job-Related Losses20
Industry Feb-20 Mar-20 Apr-20 Dec-20 Feb to
Apr
%
change
April 2020
to
December
2022
% of
losses
recovered
Shortfall
as of
December
2022
Total Nonfarm 1,683,400 1,660,200 1,414,000 1,540,100 -267,600 15.9% 293,200 108.8% 23,800 Construction 106,400 103,000 92,700 100,700 -8,600 8% 15,600 114% 1,900 Manufacturing 159,000 158,200 143,900 148,700 -15,500 9.8% 13,900 92.1% -1,200 Transportation &
Warehousing 27,300 26,800 24,300 29,200 -2,400 9.0% -6,700 -223.3% -9,700 Professional &
Business Services 327,900 321,800 289,200 315,600 -37,900 12% 47,600 123% 8,900 Educational Services 33,400 32,400 26,100 29,100 -3,400 9.9% 11,300 154.8% 4,000 Health Care & Social
Assistance 205,800 204,000 181,200 203,300 -28,000 14.0% 39,500 160.6% 14,900 Leisure & Hospitality 225,800 220,300 133,100 148,900 -102,800 45.2% 90,700 97.8% -2,000 Other Services 54,400 52,900 34,600 42,600 -17,800 35.0% 17,600 88.9% -2,200 Government 168,000 169,100 159,000 154,500 -6,700 4.0% 3,200 35.6% -5,800
Employment Recovery
In December 2020 , as
California moved slowly
toward reopening, regional
differences contributed to the
pace of recovery. The depth of
job losses and Orange
County’s reliance on service
sectors meant the region
would have to make up more
ground than other regions in
the state. How quickly
businesses reopened and how
public health risks evolved
contributed to their viability.
The recovery pace was slower
for sectors and companies that relied on in-person interaction. As of December 2020, the county recovered 14 2,800 nonfarm jobs, equivalent to 53% of the job losses since the pandemic recession. Most industries are experiencing incremental job gains monthly.
Transportation, utilities, and construction jobs have exceeded pre- pandemic levels, with the largest month-over increase, up 4,200 jobs. Wholesale trade gained 1,800 jobs, retail
19 Labor Market Information, EDD, 2021, https://www.labormarketinfo.edd.ca.gov/geography/orange-county.html 20 Labor Market Information, EDD, 2023, Industry Employment & Labor Force 25,700
141,700 131,800
155,600 153,000
189,100
0 20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Dec-20 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Jobs Recovered between
June 2020 to December 2022
Source: EDD Labor Market Information
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
13 trade added 1,500 jobs, and transportation, warehousing, and utilities expanded by 900 jobs.21 As of December 2022, the county recovered 189,100 nonfarm jobs.
Most businesses in the
County have less than 49
employees. The revenue
of s mall business es in
April 2020 decreased by
52.1% compared to
January 2020. As of
February 06, 2022, total
small business revenue
increased by 6.2%
compared to January
2020. The number of
small businesses open in
February 2022 increased by 5.1% compared to January 2020.
As of December 2022, Orange County has recovered from its job losses during the pandemic. Orange County lost 269,400 nonfarm jobs between February 2020 and April 2020. As of December 2022, OC has recovered 100% of the jobs it lost during the pandemic. The County gained 288,400 nonfarm jobs between April 2020 to December 2022. Government, manufacturing, financial services, and other services are industries that have yet to recover fully.
Orange County Employment Recovery 22
Title Feb 20 - Apr 20 Apr 20 - Dec 22 Surplus/Deficit
Total Nonfarm (269,400) 288,400 19,000
Leisure & Hospitality (92,700) 95,800 3,100
Trade, Trans. &
Utilities
(39,200) 45,000 5,800
Prof. & Bus. Svcs. (38,600) 48,400 9,800
Edu. & Health Svcs. (31,900) 50,300 18,400
Other Services (19,800) 14,200 (5,600)
Manufacturing (15,200) 14,400 (800)
Construction (13,700) 16,700 3,000
Government (9,000) - (9,000)
Financial Activities (7,000) 800 (6,200)
Information (2,300) 2,800 500
21 Labor Market Information, EDD, 2021, www.labormarketinfo.edd.ca.gov/data/lmi-by-subjects.html. 22 EDD Labor Market Information Division - Home Page (ca.gov)
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
14 According to Opportunity
Insight’s Economic Tracker,
the drastic difference between
the low and high quartiles
shows that the pandemic
disproportionately affected
lower-income bracket workers.
In Orange County, as of
November 15, 2020,
employment rates among
workers in the bottom wage
quartile (<$29K) decreased by
21.9%, the middle quartile
($29K-$73K) decreased by
8%, and the high quartile (>$60k) increased 7.9% compared to January 2020
23. The
same data, as of November 2022, shows those in the bottom quartile still have the largest drop in employment rates compared to January 2020, at 23.3%. Minority residents mostly held these lower-paying jobs and became much more financially insecure and unstable in this economic crisis.
B. Analysis of the Educational and Skill Levels of the Workforce, the Current Needs of Employers in the Region, and Relevant Skill Gaps
Orange County is home to major
universities such as the
University of California, Irvine
(UCI), California State
University, Fullerton (CSUF),
and Chapman University. The
County has four community
college districts with nine
community colleges. These
community colleges annually
educate approximately 310,000
students in credit and noncredit
courses.
23 “The Economic Tracker.” Economic Tracker, tracktherecovery.org/. 5%
0%
18%
1%
2%
46%
28%
Percent of workers in jobs paying $15.00 or less
Black or African
American
American Indian or
Alaska Native
Asian
Native Hawaiian or
Other Pacific Islander
Two or More Races
Hispanic or Latino
White
Source: LIGHTCAST Labor Market Analysis, 2021
Less Than … 9th Grade to
12th Grade
6%
High School
Diploma
17%
Some College
19%
Associate's
Degree
8%
Bachelor's
Degree
27%
Graduate
Degree and
Higher
16%
Orange County Educational Attainment -2022
Source: LIGHTCAST, Labor Market Analytics, 2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
15 Orange County’s primary competitive advantage is a talent pool of highly educated, qualified residents. In Orange County, 50 % of adults over 25 have an associate degree or higher, while only 13 .49% lack a high school diploma. Orange County residents with bachelor’s degrees are 6.3% above the national average, and 7.7% hold an associate degree, which is 0.9% below the national average.
Education data covers
the population aged
25 years or older,
indicating the highest
level of education
achieved. Inequitable
access to
postsecondary
education is a
persistent
problem. One way in
which this manifests is
through widely varying
educational
attainment across
races and ethnicity.
California’s Post-secondary to Prosperity Dashboard shows that only 16% of Latino residents hold a four-year degree. The dashboard also shows that most Latino residents have no college experience (59%), greater than all other groups. 24 The most popular college majors in Orange County are Liberal Arts and Sciences (16,678 and 2 0%), Business Administration and Management ( 7,978 and 9%), and General Psychology (3,041 and 4%).
Orange County Regional Institutions Top Program Completions 25 CIP Code Program Completions (2021)
24.0101 Liberal Arts and Sciences/Liberal Studies 16,678
52.0201 Business Administration and Management, General 7,978
42.0101 Psychology, General 3,041
30.9999 Multi-/Interdisciplinary Studies, Other 2,636
51.3801 Registered Nursing/Registered Nurse 2,161
24.0103 Humanities/Humanistic Studies 1,863
11.0701 Computer Science 1,631
09.0101 Speech Communication and Rhetoric 1,522
30.0101 Biological and Physical Sciences 1,512
24.0101 Liberal Arts and Sciences/Liberal Studies 16,678
24 “P2P Regions.” California Competes, californiacompetes.org/p2p/regions?region=orange. 25 Lightcast, 2022, https://analyst.lightcast.io/.
0 100,000
200,000
300,000
400,000
500,000
600,000
Hispanic Asian White Other Black
2022 Educational Attainment by Race/Ethnicity
Less Than High School High School Diploma College Degree Source: LIGHTCAST, Labor Market Analytics, 2022, Hispanic group contains all combined races Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
16 The employer need
in the Orange
County region is
based on job
postings,
employment data
analysis, and
educational
programs’ completions. Per the two- digit Standard Occupational Classification (SOC) code group, twenty-four occupations and 638 programs in the region of study may train for these occupations. Of these programs, there were 84 ,384,331 program participant completions in 2021 and 233,945 job openings . The job openings are up from the 2019 number of 196,852.
Identified in the table below are the occupations with the highest projected skills gap for Orange County between 2022 and 2027. This analysis indicates a continued need to identify strategies to fulfill training requirements in various high-gap occupational areas.
The research includes data based on the following:
• Occupations where the 2022 median hourly wage exceeds $16.00 an hour. • Openings greater than 10 (openings represent replacement jobs and BLS growth estimates).
• Entry-level education greater than a postsecondary nondegree award less than a bachelor’s degree.
• Top 20 occupations with skills gaps (skills gap is the difference between the projected openings and completions).
• The openings figure estimates the change in growth and replacement jobs (i.e., growth + replacements = o penings). Growth captures the change in the total number of workers employed in an occupation. At the same time, replacement jobs are estimates of workers permanently leaving a career and needing to be replaced by new hires. A combination of both numbers indicates total openings.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
17 Skills Gap by Occupation26
SOC Description 2022
Jobs
2027
Jobs
2022 -
2027
Change
2022 -
2027
Replace
ment
Jobs
2022 -
2027
Openings
Region
al
Compl
etions
(2021)
Skills
Gap
Median
Hourly
Earnings
Typical
Entry-Level
Education
43-3031
Bookkeeping,
Accounting, and
Auditing Clerks
18,815 18,891 76 11,625 11,751 858 10,893 $22.76 Some college, no degree
31-1131 Nursing Assistants 8,207 9,184 977 6,469 7,446 146 7,300 $18.61 Postsecondar
y nondegree
award
53-3032 Heavy and Tractor-
Trailer Truck Drivers 10,813 11,312 499 6,473 6,972 0 6,972 $24.09 Postsecondar
y nondegree
award
31-9092 Medical Assistants 8,558 9,603 1,046 6,281 7,327 2,580 4,747 $18.51 Postsecondar
y nondegree
award
31-9091 Dental Assistants 5,095 5,697 601 3,852 4,453 215 4,238 $23.29 Postsecondar
y nondegree
award
25-9045
Teaching Assistants,
Except
Postsecondary
10,095 10,866 771 6,106 6,877 2,639 4,238 $17.99 Some college, no degree
29-2061
Licensed Practical
and Licensed
Vocational Nurses
6,782 7,463 682 2,872 3,553 560 2,993 $30.64
Postsecondar
y nondegree
award
49-3023
Automotive Service
Technicians and
Mechanics
5,247 5,454 207 2,618 2,825 278 2,547 $25.57
Postsecondar
y nondegree
award
39-5012
Hairdressers,
Hairstylists, and
Cosmetologists
2,383 3,353 970 1,959 2,929 492 2,437 $15.84
Postsecondar
y nondegree
award
39-5092 Manicurists and
Pedicurists 3,619 4,491 872 2,537 3,409 1,108 2,301 $14.00 Postsecondar
y nondegree
award
23-2011 Paralegals and
Legal Assistants 3,644 4,112 468 2,077 2,545 265 2,280 $27.09 Associate's degree
31-9094 Medical
Transcriptionists 2,143 2,187 44 1,813 1,859 50 1,809 $17.49 Postsecondar
y nondegree
award
31-9097 Phlebotomists 1,739 2,093 353 1,347 1,701 1 1,700 $24.07 Postsecondar
y nondegree
award
31-9011 Massage Therapists 1,519 1,923 404 1,151 1,554 64 1,490 $22.79 Postsecondar
y nondegree
award
49-9021
Heating, Air
Conditioning, and
Refrigeration
Mechanics and
Installers
3,396 3,664 268 1,659 1,927 443 1,484 $31.15
Postsecondar
y nondegree
award
29-1292 Dental Hygienists 3,328 3,710 381 1,142 1,523 117 1,406 $48.83 Associate's degree
43-4151 Order Clerks 2,187 2,063 (124) 1,254 1,254 26 1,228 $18.34 Some college, no degree
17-3011 Architectural and
Civil Drafters 2,247 2,304 57 1,299 1,356 147 1,209 $30.41 Associate's degree
49-2022
Telecommunications
Equipment Installers
and Repairers,
Except Line
Installers
1,750 1,679 (71) 975 975 34 941 $30.36
Postsecondar
y nondegree
award
17-3023
Electrical and
Electronic
Engineering
Technologists and
Technicians
1,852 1,832 (20) 987 987 82 905 $32.11 Associate's
degree
26 Lightcast, 2023, https://analyst.lightcast.io/.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
18 The top three hard skills requested by employers in job postings between January 2020 to January 2021 were accounting, auditing, and customer relationship management. The following charts show the top specialized skills and the top common skills in relation to the frequency these skills appeared in job seeker profiles. Specialized skills are primarily required within a subset of occupations or equip one to perform a specific task. They are also known as technical skills or hard skills. Common Skills are prevalent across many different occupations and industries, including personal attributes and learned skills. They are also known as soft skills, human skills, and competencies.
0% 2% 4% 6% 8%
Nursing
Restaurant Operation
Warehousing
Merchandising
Selling Techniques
Invoicing
Auditing
Finance
Accounting
Marketing
Top Specialized Skills
Frequency in Job Postings Frequency in Profiles
Source: Lightcast 2023
0% 5% 10% 15% 20% 25% 30% 35% 40%
Detail Oriented
Problem Solving
Writing
Communications
Operations
Microsoft Excel
Leadership
Management
Customer Service
Sales
Top Common Skills
Frequency in Job Postings Frequency in Profiles
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
19 C. Analysis of Industries and Occupations with Existing and Emerging Demand
The RPU analyzed location quotient, total jobs, and competitive effect data to identify industries and occupations with emerging demand. An analysis of location quotient data demonstrated which occupations and industries are specialized in the Orange County region (compared to the national average). The competitive effect indicates how much job change results from some distinct competitive advantage in the area. The competitive effect measures the job change that cannot be explained by national growth and industry mix. The difference in competitive effect points to regional-specific factors on the change in local employment numbers. Factors such as labor force training and education, skills, transportation, supply chains, aging demographics, and other regionally influenced factors may impact these industries’ and occupations’ competitiveness.
Using the 3- digit NAICS code, the
emerging industries identified had a
location quotient that increased
between 20 17 and 20 22 and had a
location quotient of less than 1.2. The
industry list was filtered to include
industries with a competitive effect
greater than 1 percent change in jobs
higher than 10% and more than 1,000 jobs. The following chart consists of a list of the top thirteen emerging industries in Orange County. This combined list of sectors accounted for 321,154 jobs in 20 22. This group of industries is projected to grow t o 490,109 jobs by 2027.
Industries with Emerging Demand
NAICS Description 2017
Jobs
2022
Jobs
2017 -
2022
Change
2017 -
2022 %
Change
Competitive
Effect
2017
Location
Quotient
2022
Location
Quotient
812 Personal and Laundry Services 14,962 17,548 2,586 17% 3,022 0.92 1.12 621 Ambulatory Health Care Services 83,749 96,902 13,153 16% 5,060 1.04 1.12 624 Social Assistance 41,158 49,209 8,051 20% 4,189 1.00 1.11 446 Health and Personal Care Stores 11,540 12,173 633 5% 1,104 0.98 1.09 611 Educational Services 26,794 32,837 6,044 23% 5,177 0.86 1.03 325 Chemical Manufacturing 7,937 8,844 908 11% 315 0.87 0.92 454 Nonstore Retailers 5,371 6,377 1,006 19% 405 0.84 0.91 623 Nursing and Residential Care Facilities 26,290 26,328 39 0% 2,887 0.71 0.81 814 Private Households 1,624 1,903 278 17% 690 0.51 0.81 312 Beverage and Tobacco Product
Manufacturing 1,862 2,359 497 27% 124 0.64 0.68
622 Hospitals 31,995 32,653 658 2% 516 0.58 0.59
902 State Government 25,468 25,822 354 1% 940 0.50 0.52 515 Broadcasting (except Internet) 962 1,006 44 5% 177 0.32 0.40 484 Truck Transportation 5,016 6,074 1,058 21% 776 0.31 0.36 481 Air Transportation 903 1,119 216 24% 237 0.17 0.21
Source: LIGHTCAST, 2023
Mature Growing
Location Quotients are
greater than 1.2 and
steadily decreasing
Location Quotients are
greater than 1.2 and
steadily increasing
Declining Emerging
Location Quotient is less
than 1.2 and steadily
decreasing
Location Quotient is less
than 1.2 and steadily
increasing
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
20 The following is a list of the occupations in Orange County with emerging demand. These occupations have a location quotient of less than 1.2 as of 2022 . The location quotient has increased since 2017 . The competitive effect is positive in these professions, demonstrating a high degree of regional-specific factors influencing job growth.
Occupations with Emerging Demand
SOC Description 2017 Jobs 2022
Jobs
2017 -
2022
Change
Median
Hourly
Earnings
Competiti
ve Effect
2017
Location
Quotient
2022
Location
Quotient
31-1100
Home Health and Personal Care Aides;
and Nursing Assistants, Orderlies, and
Psychiatric Aides
44,489 57,510 13,021 $14.15 9,736 0.88 1.08
53-6000 Other Transportation Workers 3,225 3,596 372 $14.92 895 0.77 1.04 21-1000 Counselors, Social Workers, and Other
Community and Social Service Specialists 21,472 23,687 2,215 $25.30 490 0.95 0.99 35-1000 Supervisors of Food Preparation and
Serving Workers 10,199 13,637 3,438 $18.32 1,340 0.87 0.98 27-4000 Media and Communication Equipment
Workers 2,082 2,246 164 $23.52 330 0.82 0.97
25-1000 Postsecondary Teachers 13,553 13,946 393 $45.12 686 0.91 0.97 25-9000 Other Educational Instruction and Library
Occupations 16,767 17,382 614 $18.86 371 0.92 0.95
19-3000 Social Scientists and Related Workers 2,432 2,557 124 $48.37 30 0.88 0.90 19-4000 Life, Physical, and Social Science
Technicians 3,377 3,676 300 $24.30 305 0.81 0.90
27-3000 Media and Communication Workers 5,562 5,623 61 $32.45 57 0.85 0.87 29-2000 Health Technologists and Technicians 23,974 27,571 3,597 $28.58 3,229 0.75 0.86 29-1000 Healthcare Diagnosing or Treating
Practitioners 46,324 52,960 6,637 $56.77 3,765 0.76 0.83 51-3000 Food Processing Workers 6,809 7,256 446 $16.09 282 0.76 0.80 29-9000 Other Healthcare Practitioners and
Technical Occupations 645 1,190 545 $30.02 106 0.71 0.79 39-2000 Animal Care and Service Workers 1,405 2,386 980 $14.46 543 0.59 0.78 47-4000 Other Construction and Related Workers 3,028 3,426 397 $28.07 239 0.67 0.73 25-2000
Preschool, Elementary, Middle,
Secondary, and Special Education
Teachers
28,039 28,871 832 $42.52 649 0.64 0.66
51-8000 Plant and System Operators 1,411 1,732 321 $38.72 380 0.42 0.54 39-4000 Funeral Service Workers 266 372 106 $17.12 109 0.37 0.53 33-1000 Supervisors of Protective Service
Workers 1,169 1,649 480 $57.20 217 0.38 0.44
45-4000 Forest, Conservation, and Logging
Workers 117 222 105 $16.42 102 0.20 0.38
53-2000 Air Transportation Workers 1,029 1,069 40 $49.13 44 0.33 0.35 53-5000 Water Transportation Workers 182 294 112 $33.93 115 0.20 0.33 45-1000 Supervisors of Farming, Fishing, and
Forestry Workers 107 150 43 $21.86 40 0.21 0.29
Source: LIGHTCAST, 2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
21 III. REGIONAL INDICATORS
The California Workforce Development Board has established “regional indicators” to assess coordination and measure progress within California’s 15 RPUs. The indicators serve to track processes and activities utilized by regions, providing a foundation for regional approaches that align with the needs of businesses in key sectors.
Regions must choose at least one of the following indicators:
Indicator A: The region has a process to communicate industry workforce needs to supply-side partners.
Indicator B: The region has policies supporting equity and strives to improve job quality.
Indicator C: The region has shared target populations of emphasis.
Indicator D: The region deploys shared/pooled resources to provide services, training, and education to meet the target population's needs.
A. Regional Indicator and Associated Outcomes and Metrics
Members of the three WDBs that comprise the Orange RPU selected indicator A : The region has a process to communicate industry workforce needs to supply-side partners.
Indicator A encourages regions to examine supply and demand in key regional sectors and occupations. It requires workforce boards to understand employer demands such as skills, competencies, and the number of positions available in associated jobs. Indicator A asks regions to establish a benchmark around placement into these key jobs and work with supply-side partners to understand the demands and adjust their training services and recruitment as necessary. Supply-side partners refer to a range of potential regional workforce system partners, including community colleges, adult education providers, alternative training providers, human service agencies, and community -based organizations (CBOs). Aligning industry workforce needs and supply -side offerings is critical to understanding the opportunities in regional economies and overcoming the challenges associated with disconnected tracking and reporting systems between training and service providers and employers.
In accordance with guidelines provided in connection with Regional Plan Implementation grants administered by the State Board, regional outcomes and metrics have been established for Indicator A.
Outcomes
Outcomes and associated strategies and metrics have been established for the indicator.
Outcome 1: Region has developed benchmarks and measurements to track improvement in the number of individuals placed in jobs that align with the sectors and occupations emphasized in the Regional Plan. Target sectors include advanced manufacturing; Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
22 healthcare; information and communications technology, including digital media; and retail, hospitality and tourism.
Strategies to be used to achieve this outcome will include, but not be limited to, the following:
1.a. Identify a minimum of two demand job classifications per sector to track
1.b. Capture and record jobs to be filled in identified job classifications
1.c. Broadcast jobs to be filled via a regional website
1.d. Track enrollments in training for demand job classifications as reported in CalJOBS
1.e. Track placements made by systems partners using CalJOBS
1.f. Track year-over-year increases in demand job placements for target sectors that are recorded in CalJOBS, adding placements from non-CalJOBS users over time.
Metrics for this outcome are:
1.a. Number of Job Classifications for Which Information will be Provided to Supply - Side Partners: As a measure of effectiveness in identifying the workforce needs of industry, the number of jobs classifications or job titles that the region will track.
This will be no less than two demand job classifications per each of the region’s four target sectors.
1.b. Number of Demand Job Openings Captured: As a measure of effectiveness in identifying the workforce needs of industry, the number of jobs identified annually in the selected classifications.
1.c. Number of Demand Jobs Broadcast to Supply -Side Partners : As a measure of effectiveness in communicat ing demand to supply -side partners, the number of jobs broadcast to the partners.
1.d. Number of Individuals Trained for Demand Jobs as Reported in CalJOBS : As a measure of responsiveness to industry demand, the number of individuals enrolled in training to prepare them for demand j obs in target sectors. Initially, individuals tracked will be those reported in CalJOBS. Subsequently, trainees tracked through other data management system, will be included.
1.e Number of Individuals Placed in Target Sector Demand Job Classifications : As a measure of responsiveness to industry demand, the number of individuals placed in demand jobs in targeted sectors. Initially, individuals tracked will be those reported in CalJOBS. Subsequently, placed individuals tracked through other data management systems will be included.
For each of the foregoing measures, year over year increases will be tracked and reported.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
23 Outcome 2: Region has developed benchmarks and methods to track workforce partner professional development training on priority sectors and industry workforce needs.
Strategies to be used to achieve this outcome will include, but not be limited to, the following:
2.a. Distribute EDD monthly labor market information to partners
2.b. Provide professional development training for workforce system partners and staff that addresses the needs of target sectors and its demand occupations
2.c. Develop regional training reports for each target sectors
2.d. Track training participation
2.e. Survey training effectiveness and perception of knowledge gains
Metrics for this outcome are:
2.a. Percentage of Monthly Information “Blasts” Met : As a measure of efficiency in sharing information with supply-side stakeholders, 100% of planned monthly LMI and other sector-related information “blasts” to stakeholders will be achieved.
2.b. Number of Staff Development Training Sessions: As a measure of availability and access, the number of annual sessions during which staff can participate in training, whether in-person or through other modalities.
2.c. Number of Staff Development Training Participants: As a measure of impact on overall system cap acity, the total number of WIOA -funded staff and workforce system partner representatives who annually participate in training.
2.d. Staff Development Training Participant Evaluation on “Ability to Apply Information Learned:” As a measure of customer satisfaction regarding training relevance and utility of information provided, 80% of participants will indicate that they can apply information learned to their work.
B. Impact of Indicators and Metrics on Service Delivery
Local workforce system leaders chose to concentrate their joint efforts on communicating industry workforce needs to supply-side partners. This indicator holds significant promise to increase the effectiveness of the workforce system in supporting businesses that are driving economic growth and creating opportunities for prosperity among workers in the region. Th e emphasis on supporting training and recruitment of workers for demand occupations within priority industries will increase the effectiveness of local boards, their providers, and system partners in developing and implementing sector strategies. Effects of local service delivery will include:
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
24 Building Greater Understanding of the Region’s Priority Sectors : Frontline staff at America’s Job Centers of California (AJCCs), which are administered by the three local workforce development boards in Orange County, have a working understanding of the four regional target sectors, as do the staff of many of the local workforce system partners.
As a result of the training that will be provided in connection with the selected regional indicator, knowledge among staff regarding these key industries will not only be increased but also a greater shared understanding of the sectors among the system partners.
Development of Specific Sector Strategies : As measures established for the regional indicator require performance in terms of training and placement, the local boards will work together to develop specific strategies for recruiting new workers for each of the region’s priority sectors.
Increased Collaboration with Training Providers: To meet the workforce needs for specific occupations with the four target industries, local workforce boards and other partners will collaborate more closely with community colleges, adult schools, and training providers to ensure that courses are available to address businesses’ needs for trained employees and that curricula reflects industry input.
Improving the Framework for Information Sharing: As a core objective for the selected indicator is to communicate infor mation from businesses to supply -side partners, structured protocols will be developed for sharing information through direct messaging and web-based postings. These efforts will provide a model for information sharing across the many organizations comprising Orange County’s workforce development delivery system.
Strengthening Messaging to Businesses : Adopting the selected regional indicator will require the local boards and system partners to develop strong, consistent messaging around the specific strat egies and services available to businesses to meet their talent sourcing and training needs.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
25 IV. FOSTERING DEMAND-DRIVEN SKILLS ATTAINMENT
The local workforce development boards in Orange County and their workforce system partners are committed to supporting businesses of all types and sizes. However, central to the overall workforce development strategy for the region is a focus on industries that drive the economy. In addition to labor market i nformation published by the California Employment Development, industry -specific information and intelligence are gathered from representatives of businesses in priority sectors and help to inform the content and quality of local workforce programs and regional initiatives.
A. In-Demand Industry Sectors for the Region
The Orange RPU has identified four priority sectors ( or industry clusters) , each with a substantial current and potential impact on the regional economy based on labor market information. Advanced manufacturing; healthcare; information and communication technology, including digital media; and retail, hospitality and tourism not only drive the county’s economy but contribute to the growth and stability of other supporting businesses, industry sectors, and jobs that lead to economic self -sufficiency and advancement opportunities for Orange County residents.
NAICS industry codes included in each sector
Industry NAICS
Advanced Manufacturing
3241, 3251-54, 3259, 3271, 3279,
3311, 3313, 3315, 3331-3333,
3336, 3339, 3341-3346, 3351-3353
Healthcare 621,622,623
Information and Communications
Technology (ICT)/Digital Media 51, 5415
Retail, Hospitality, & Tourism 44, 45, 71,72
Advanced Manufacturing
The advanced manufacturing sector has 150,795 full and part -time jobs. The average earnings per job in 2022 was $ 118,252. There were 5,353 payrolled manufacturing businesses in the Orange County region in 2020. Manufacturing has been declining in the region; between 2017 and 2022 , the industry declined by 4%. Nationally manufacturing increased by 1% for the same period. The expected change between 2022 to 2027 is -2%, with a loss of 3,423 jobs in the region. Automation, changes in skills required to perform new tasks, import competition, and a decrease in mobility are all reasons cited as contributions to the decline. Despite the declining jobs, advanced manufacturing is a priority in the Orange RPU due to the number of jobs and the impact on the local economy, given the sector’s total gross regional product (GRP) of $18 .6 billion. Th e sector represents approximately 12.8 % of the county’s total GRP. The advanced manufacturing sector has highly specialized and growing advanced manufacturing subsectors in the county. Medical equipment and supplies manufacturing had a concentration in the Orange County region that is five times higher than typical in Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
26 other areas, with a location quotient of 5. 72. Medical equipment and supplies manufacturing also increased jobs by 18 % between 201 7 and 2022, bringing the total employment in 2022 to 20,424. Other healthy and growing subsectors in the region are audio and video equipment manufacturing (LQ 4.86), apparel knitting mills (LQ 4.80), Cut and sew apparel manufacturing (LQ 4.10), manufacturing and reproducing magnetic and Optical Media (LQ 3.16), semiconductor and other electronic component manufacturing (LQ 3.11).
Manufacturing companies
will need a skilled worker
pipeline to fill new jobs and
replace retiring workers in
these specialized
subsectors. Both regionally
and nationally , the sector
has an aging workforce.
Workers 65 and older
represent 8% of the
workers, and 24. 4% are
between 55 and 64.
Recruiting and retaining a
high-quality workforce for
new technology-driving positions will be necessary for manufacturing innovation. There are multiple opportunities at various entry points for individuals with a high school diploma, who have completed a certification program, or who have earned a 2- or 4-year college degree. The top companies posting jobs in the last 12 months were Boeing (3,340), B. Braun (1,818), Edwards Lifesciences (1,334), AbbVie (1,042), and Johnson & Johnson (890).
Healthcare
The healthcare sector has 155,883 full and part-time jobs. The average earnings per job in 202 2 was $86,957. There were 11,939 payrolled business locations in the Orange County region in 202 2. The industry growth between 2017 and 2022 was 10%, above the state’s growth percentage of 9 %. The expected change between 202 2 to 2027 is 13%, with a gain of 19,906 jobs. The sector contributes $18.5 billion in GRP, equivalent to 6.1% of the county’s total GRP. The healthcare sector comprises several related subsectors and supporting industries , including ambulatory healthcare services, hospitals, and nursing and residential facilities. The healthcare sector is growing and continues to be a stalwart industry throughout the pandemic. Healthcare is one of the few recession-proof industries, with registered nurses being the top-posted occupation between January 2020 to 2021
27. This job posting trend c ontinued between 2021 and
2022. Given the rapidly aging Orange County population, the sector is expected to be an ongoing driver of economic activity , increasing the likelihood that many residents will require more healthcare and related support services. The top companies that posted
27 Lightcast, 2021, https://analyst.lightcast.io/.
571
6354
27467
30705
36905 36781
12011
0 5000
10000
15000
20000
25000
30000
35000
40000
14-18 19-24 25-34 35-44 45-54 55-64 65+
2022 Industry Sector by Age Breakdown
Source: LIGHTCAST, 2023
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
27 jobs in the last 12 months were Providence (4,757), PIH Health (1,886), Tenet Healthcare (1,459), CareIn Home (1,408), and Kindred Healthcare (1,394).
Information and Communications Technology and Digital Media
The ICT/Digital Media (ICT) sector has 47,102 full and part-time jobs. Computer systems design services and software publishers have the highest positions in the county at 31,072 jobs combined. The average earnings for ICT jobs in 2022 were $165,034. There were 4,605 payrolled business locations in the Orange County region in 2022 . The industry declined between 2017 and 2022 by 2%. Expected job growth between 2022 to 2027 is 3%, with a gain of 1,595 jobs. The sector contributes $17.2 billion in GRP, 5.6% of the county’s total GRP. The technology sector accounts for a significant portion of Orange County’s economic activity as economies, jobs, and personal lives become more digital and automated. The ICT sector develops innovative serv ices and products that impact all regional industries . ICT applications can be seen in manufacturing with computer simulation and in the healthcare industry with the rise of telemedicine and telehealth. Remote work surged during the pandemic and is a n enduring attribute of today’s employment landscape. The ICT sector is one industry that has embraced remote work and hybrid work . The ICT industry is one of the industr ies where training and upskilling existing staff will be crucial in ensuring regional competitiveness. The top companies that posted jobs in the last 12 months were Disney (1,375), Verizon Communications (1,122), Anduril Industries (686), Spectrum (623), and Ingram Micro (610).
Retail, Hospitality and Tourism
The retail, hospitality, and tourism sector has 352,015 full and part-time jobs, making it the largest targeted industry in the region. The average earnings per job were $ 46,455 in 2022. There were 19, 865 payrolled establishments in the Orange County region in 2022. The number of jobs declined by 4 % between 2017 and 2022 . Jobs in the state and the nation declined by 5% during the same period. The expected change between 2017 to 2022 is a growth of 9% and 32,678 job gains. The sector contributes $32.9 billion in GRP, 11% of the county’s total. According to the Orange County Visitors Association, Orange County welcomed 50.2 million visitors who spent 413 billion dollars in 2019.
Tourism is part of Orange County’s DNA and was hit the hardest by the pandemic’s effects. The sector is diverse and includes hotels, restaurants, entertainment venues, cultural attractions, sports parks, theme parks, food establishments, retail stores, and other venues. The highest numbers of jobs in 202 2 were in full-service restaurants (60,044), limited -service restaurants (52, 289), and amusement and theme parks (25,575). The top companies that posted jobs in the last 12 months were Marriot International (4,593), Amazon (3,020), Great Wolf Resorts (1,655) , Disneyland Resort (1,621), and Starbucks (1,616).
Often the jobs within these industries are characterized by low wages. The industry has historically offered entry -level employme nt opportunities to new immigrants and candidates with a high school diploma. While many jobs exist in lower -paid, entry-level Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
28 classifications, there are many opportunities to secure positions offering higher compensation. The challenge is ensuring those in entry-level positions obtain additional job-specific and English -language skills necessary to qualify for promotional opportunities. Career pathway programs and incumbent worker training are workforce development strategies that can play an essential r ole in lifting people from lower -wage jobs.
B. Sector Strategies and Other Industry-Focused Initiatives
Orange RPU started the region’s sector partnership work under a “Slingshot” grant funded by the California Workforce Development Board. The RPU engaged a consultant who is a national leader in the design and practice of next-generation industry engagement. This early work guided the launch of i ndustry sector partnerships (ISPs) in th e RPU’s four priority sectors using the “ Next Gen Sector Partnership” model. The first industry collaboration meetings occurred just before the COVID -19 pandemic. These meetings represented a starting point for partnerships to deepen and grow over the next several years. The RPU had participation from core partners, employers, chambers, and unions.
While this work stalled over the pandemic, t he Orange RPU R egional Organizer will continue to lead the sector partnership work, which has three-fold goals:
1. Conduct regular sector partnership meetings with employers to identify common industry priorities, address shared vitality issues, and understand hiring and training needs to create a pipeline of qualified candidates in grow th industries and other promising sectors.
2. Develop workforce strategies in collaboration with adult education, community colleges, and other partners , including mapping career pathways, work -based learning, and apprenticeship programs.
3. Unify and coordinate business engagement efforts by all partners to minimize duplication of efforts, minimize employer fatigue, and promote systemic change that benefits each industry, its workers, and the community.
To address upward income mobility and improve economic self -sufficiency, continuous and authentic industry leadership and shifts in workforce strategies are needed to transition low-skill job seekers into middle-skill careers and address underemployment in the region. The pandemic has slowed the industry sector’s work progress. The RPU remains committed to re-engaging employers and partners and building upon the industry sector work that was begun before the outbreak of COVID-19.
The RPU will work in close collaboration with the community college system through the Orange County Regional Consortium (OCRC) to convene industry leaders . OCRC provides a regional framework to communicate, coordinate, collaborate, promote, and plan career and technical education in concert with workforce and economic development in the Orange County region. OCRC represents nine community colleges and one stand- alone continuing education (noncredit) center within four community college districts. The Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
29 consortium has identified priority sectors , which are summarized below. Four of the community college sectors align with the Orange RPU priority industr ies. The RPU adjusted industry titles to match those of the community colleges to ensure that there is no confusion on the region’s priority industries.
Priority Sectors for the OC Region
Sectors
Community
Colleges
Orange
RPU
Advanced Manufacturing
Advanced Transportation & Logistics
Life Sciences/Biotech
Business and Entrepreneurship
Energy, Construction, and Utilities
Healthcare
ICT/Digital Media
Retail, Hospitality, & Tourism
In partnership with OCRC, the Orange RPU will expand sector partnerships by working with Orange County chambers of commerce and other community and educational partners to identify additional core team members who will support strengthening industry sector partnerships. Orange County has many state, county, and civic organizations; four community college districts; twenty -seven K -12 school districts; California State University and the University of California systems; and numerous other public and private stakeholders vested in the workforce and economic development. Representing such a large number of stakeholders requires a great deal of commitment from the core group, which is committed to building deep, sustainable relationships that result in career pathways and a steady pipeline of workers within the identified priority sectors.
This core team will be responsible for developing and carrying out an action plan that provides a strategic and coordinated effort to unify business engagement efforts, identify and engage industry champions and other businesses, and support partner organizations. The core team will relaunch sector meetings to gather information about the challenges and opportunities. After the initial meetings, employers will be invited to regular meetings to set goals to address their needs and take action with the partners on those goals. Meetings and agendas will be business-driven, and actions taken will create a pipeline of qualified candidates who meet industry needs for in-demand occupations.
Managing sector partnerships will require a shared focus on the following:
• Training and skills development to bring new employees into specific industries and occupations
• Business development
• Incumbent worker training
• Labor market and industry research
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
30 • Restructuring work environments to improve recruitment, hiring, training, compensation, and retention strategies.
• Integrating two or more of these strategies in a multifaceted approach
C. Strategies to Communicate with Regional Employers
Most business contacts are made at the local level by the WDBs and the AJCCs .
However, when the boards work with the same businesses across their jurisdictions, they make every effort to collaborate and coordinate messaging and service delivery. Such efforts have been common in rapid response , layoff aversion activities, and businesses establishing new operations in one or more Orange County communities.
To promote coordinated and cohesive messaging, the local boards have collaborated on developing a brand, Orange Workforce Alliance (OWA), to represent the RPU and regional interests and initiatives, including messaging to businesses and industry. A regional website (https://orangeworkforcealliance.com
) provides an overview of services
available from any of the three local boards and their partners for business customers, including human resources support, training and skills upgrading, labor market information, layoff assistance, outplacement assistance, and financial services. Launched in 2023, the OWA brand, its website, and collateral materials represent an effective strategy for communicating with employers throughout the region.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
31 V. ENABLING UPWARD MOBILITY FOR ALL CALIFORNIANS
The local boar ds 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 Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
32 2) improving the quality of jobs in key sectors where many low-income people work28.
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 workforce developm ent services and job training provide a bridge to greater financial stability.
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 region will prioritize working with employers that provide quality jobs and those interested in improving their job quality and being part of moving low-wage workers into better-paying positions. Regional partners are committed to developing protocols that focus on engaging businesses that provide quality jobs or have an interest in improving job quality. The RPU will work with business leaders to ask questions and begin conversations around job quality, helping businesses understand how workforce investments can improve their competitive advantage.
Through sector work, the RPU will work with businesses and regional partners to identify entry-level positions and develop career pathways with multi ple entry and exit points, ensuring individuals understand their path to self-sufficiency. The region will review high- road employment practices and strategies to design better jobs. The RPU will also target on-the-job and incumbent worker training funding toward quality jobs that provide upward mobility.
B. Shared Target Populations and Targeted Service Strategies
The one-stop delivery system provides the local boards and partners the framework to continue and advance discussions of how workforce programs can be more effective, efficient, and aligned. The RPU and partner organizations have identified and are currently addressing the needs of shared target populations , including English language learners, justice- involved individuals, individuals with disabilities, veterans, and disconnected and foster youth. During the development of the original PY 21-24 Regional Plan and its 2023 modification, a recurring theme in planning meetings was that organizations seeking to serve these populations would benefit f rom stronger linkages with other organizations doing the same or complementary work.
The RPU has regularly scheduled meetings to address service delivery and performance for these targeted groups. During the regional planning meetings, the local boards and partners shared promising practices to address English language learners’ specific challenges. The group discussed two distinct subcategories, those with low skills and education and those with higher skills and educational degrees from other countries. The RPU and partners committed to reconvene to discuss how we can collectively improve
28 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/ Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
33 service delivery to English language learners and determine if other populations warrant different workforce development strategies to serve them more effectively.
C. Equity and Ensuring Equal Access to Training and Services
The RPU and regional partners will ensure historically unserved and underserved populations have equal access to regional sector career pathways and other services and support through sector partnerships. Through sector partnership work, the RPU and partners will have the opportunity to work with employers to create career pathways that help mitigate the many challenges vulnerable populations face in completing educational goals and moving into employment with family-sustaining wages. Workforce development programs and supports should not be designed as a one- size-fits-all solution. The populations we serve are diverse, and program designs should reflect this diversity if we are going to close the skills gap and combat economic inequality. Career pathways are also a service-delivery model that can close achievement gaps and advance racial equity by helping individuals build skills over time. Career pathways are a long- term approach to serving individuals with limited basic skills or other employment barrier s that the local boards are committed to expanding.
Sector partnership work will also provide an opportunity for the RPU to address issues such as degree inflation that tend to exclude minorities from jobs during the hiring process. According to Manjari Raman, director of Harvard Business School’s project on Managing the Future of Work, degree inflation refers to jobs that historically required more than a high school diploma or less than a college degree but now require a college degree
29. Explicitly requiring degrees for positions instead of the jobs’ skills exacerbates the effect of racial disparities in educational achievement and eliminates workers who may have acquired the skills in other ways. Also, through sector partnership work, other hiring practices that disproportionately affect minorities, such as automatically excluding potential employees using criminal background checks and credit checks, can be discussed.
Another strategy that the sector partnerships will address is creating work-based learning programs and pre- apprenticeship programs. Pre- apprenticeships can be valuable for people of color who are historically underrepresented in apprenticeships. Work -based learning programs can provide vital formal access to employers that the population may not have had when relying on their existing professional and social networks.
Partners supporting the development of the PY 21- 24 Plan and its biennial update consistently remarked on access issues, including how some lack access to nearby AJCC services and the lack of digital literacy and access to broadband services. The pandemic has exacerbated these issues. Partners describe how transportation and childcare needs, and a general lack of understanding of the services available, prevent a large percentage of those most in need of assistance from accessing them. The local boards recognize
29 Morgan, Kate. “'Degree Inflation': How the Four-Year Degree Became Required.” BBC Worklife, BBC, 28 Jan. 2021, www.bbc.com/worklife/article/20210126-degree-inflation-how-the-four-year-degree-became- required#:~:text=Cornett%20is%20a%20victim%20of,Managing%20the%20Future%20of%20Work.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
34 that specific populations require more outreach and unique methods and strategies for locating, attracting, and retaining their participation in w orkforce programs. The Orange County WDB purchased a mobile unit equipped with 12 computers and a monitor outside for presentations. The mobile unit is accessible by wheelchair by using a lift. The unit serves as a one-stop mobile center for the Orange County community. The mobile unit is deployed to low-income communities, areas that are far from a comprehensive AJCC, and partner locations to increase access and awareness of services.
The boards and partner agencies will also expl ore additional referral agreements and processes with other organizations that can be engaged as partners to serve targeted people in their communities. Disadvantaged and vulnerable populations need increased support services, multiple service strategies, co -enrollment in additional programs, referrals to community service providers, and a team approach to succeed in the labor market.
Participants must have broadband internet access to complete enrollment applications, financial aid applications, and work requirements. Job openings are now almost exclusively accessible via the internet. Many job search websites are not fully accessible to mobile phone users. The digital divide between people with broadband internet access and those without access or cell phone -only access is also a huge barrier to accessing post-secondary education and entering the workforce. The RPU and regional partners have discussed the need for partners to address the digital divide collectively and are working with regional and statewide initiatives to address the issue.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
35 VI. ALIGNING, COORDINATING, AND INTEGRATING PROGRAMS
AND SERVICES
Orange County’s three local boards have a long history of collaborating on sector strategies, and initiatives serving key groups and designing, developing, operating, and administrating successful workforce programs. WIOA’s focus on regional approaches and establishing RPUs in California have strengthened collaboration among the local boards.
The boards within the region consistently strive to use limited resources as effectively as possible. The following is an overview o f current and potential future efforts to achieve regional coordination and alignment of services, systems, and strategies.
A. Regional Service Strategies
The three local boards have executed a Memorandum of Understanding (MOU) to solidify their joint commitment to collaboration on workforce and economic development within the Orange County region through system alignment, integration of service delivery, and leveraging resources. Regional objectives include:
• Improve and enhance customer experience by ensuring staff receives ongoing professional development training and cross-training
• Meet the needs of employers by implementing and scaling career pathways • Improve the quality of workforce services by strengthening alignment and partner connections
• Align investments in targeted populations and industry sectors • Expand opportunities for businesses and job seekers to engage in integrated learning and work experience activities
• Share resources and braid funding to support regional goals and objectives.
One of the clearest examples of the strong work relationship among the boards is its collaboration on not just this Regional Plan but on a Unified Local Plan. With the state’s establishment of RPUs under WIOA, Orange County’s local boards became responsible for developing a four -year Regional Plan as a companion to their WIOA -required Local Plans. However, given WIOA’s emphasis on regional collaboration, the Anaheim, Santa Ana, and Orange County WDBs elected to develop a Unified Local Plan to represent all three local workforce development areas.
As described, to create greater recognition for their regional work, in 2023, the three boards that comprise the RPU adopted Orange Workforce Alliance (OWA) as a brand.
The brand is used to promote regional partner s, targeted training, labor market data, support for businesses, and workforce services for adult job seekers and youth. The primary mission of the OWA is to support the alignment of resources between the workforce, education, and industry to meet regional workforce needs.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
36 B. Regional Administrative Cost Arrangements
The three boards in the Orange County RPU collaborate on multiple projects, with one board or another acting as the fiscal agent for each project. At present, the RPU does not have any overarching cost arrangements, nor do the local boards intend to pool funds for administrative costs.
The boards represented by the Orange RPU are determined to better align workforce services with economic development, educational institutions, and business. The boards will consider administrative cost arrangements if they determine that they will enable the RPU to accomplish the region's objectives more efficiently.
VII. PRIORITY CONSIDERATIONS FOR PROGRAM YEARS 2021-24
During the development of the original PY 21- 24 Orange RPU Regional Plan, the local boards, supported by the Regional Organizer, held a series of discussions with workforce system partners, stakeholders, and community members regarding key issues affecting workforce development programs and activities throughout Orange County and that touched on central content areas of both the Regional Plan and the three boards’ Local Plan. Input resulting from planning sessions was embedded throughout the original PY 21-24 Regional Plan narrative. Since implementing the Plan, these r ecommendations have been the ongoing focus of exploration, development, and/or enhancement.
As part of preparing the biennial update to the Plan, regional leaders again engaged system partners and others in dialog regarding major workforce issues, particularly those reflecting the widespread effects of the pandemic. These discussions resulted in recommendations for various possible strategic initiatives and priorities as summarized below.
System Approaches and Protocols
The following stakeholder suggestions deal largely with matters involving the overall workforce development delivery system in Orange County and approaches that could be addressed regionally and by one or more of the three local boards.
1. Investment in skil ls and information for middle school and younger students is critical in developing a pipeline of youth who are knowledgeable about and ready to participate in career pathway programs.
2. Work-based learning programs, such as apprenticeships, can be used to address job applicants’ skills gaps. While businesses want experienced candidates, many applicants lack the experienced requested. A viable solution to this problem lies in employers providing the needed experience through a structured approach to skills training and skills acquisition.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
37 3. The workforce system should provide support to businesses of all types and sizes in becoming trainers. Many businesses could benefit from providing work -based instruction to new employees but need assistance in implementing effective models.
4. The workforce system partners should more closely collaborate with the K -12 system to increase the availability of workforce preparation information and activities for students.
5. Schools, parents, and the workforce development system can better inform young people about the full range of career pathways, including jobs that don’t require a college degree.
Business-Focused Strategies
Many of the stakeholders providing input during the development of the 2023 Biennial Modification to the Regional Plan addressed matters regarding the various ways in which the workforce system provides support to businesses and how the pandemic has affected the needs of businesses with regard to training, hiring, and retaining new and existing workers.
6. Workforce system partners should take a more consultative approach in working with businesses, providing advisement and recommending strategies drawn f rom the partners’ br oad experience working with both demand and supply side customers.
7. Businesses need support not just with recruitment but with job retention.
Businesses are experiencing tremendous costs from newly hired workers leaving companies within the first weeks or months of employment. Workforce system partners should provide companies with tools, strategies, and recommendations for messaging.
8. While many older workers have stayed in or returned to the workforce due to the pandemic, the i mpending threat of a “silver tsunami” is affecting more industries and job classifications. The regional workforce system should assess the worker replacement needs of their business customers and develop industry -specific strategies to recruit and prepare a pipeline of new workers.
9. Nearly all major industries and occupations are facing worker shortages.
Businesses need support from the full range of workforce system partners in addressing these shortages and developing short- and long-range strategies.
10. The use of technology by businesses accelerated during the pandemic, but training for workers in technology skills has not consist ently kept pace. The system Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
38 partners should develop and implement a comprehensive strategy to address technical skills training needed by those seeking and applying for jobs.
11. Workforce system partners should assess whether they are sufficiently preparing workers for future jobs in addition to today’s jobs.
12. Business services staff and organizations that support businesses in sourcing talent should assist businesses in evaluating and reassessing the requirements for jobs. For instance, is a college degree needed for many jobs requiring one? Is five years’ experience an absolute requirement?
13. The workforce system’s business services staff should assist companies, especially small employers, develop job descriptions. Accurate job descriptions will support businesses in more effectively messaging potential candidates about positions they want to fill.
14. By engaging more actively with all types of chambers of commerce, the workforce system can get better access to business intelligence from small businesses with unique needs.
15. Remote work and work-from-home models offer a good example of the changing workplace. The partners should identify skills needed for the new workplace and develop programs to teach these skills.
Job Seeker- and Worker-Focused Strategies
Several recommendations were received from stak eholders regarding services for job seekers and currently employed individuals.
16. Businesses are managing multi-generational workforces. Younger generations of workers have different values than their older counterparts and prioritize different aspects of their work lives. Workforce strategies should recognize and addresses generational differences in system customers.
17. While each generation of workers is entitled to its values and choices on the path within the labor market, workforce system partners should provide customers with information about the effects of frequent changes in employment on their career goals.
18. Many older workers remaining in or returning to the workforce need assistance upgrading existing skills and building new ones.
19. Workers need strong “social literacy” skills, as an essential requirement of work is building and maintaining effective relationships.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
39 20. Workforce system partners should assist job seekers throughout their career exploration process in evaluating the “emotional quotient” of various types of work, as individuals who choose careers that align with their interests, aptitudes, and work-related values are much more likely to remain in these careers.
21. As workers’ attitudes have changed, so too have students’ values and priorities.
Some students prefer in- person instruction, while others favor online courses.
Education and training providers should make content available through various modalities to reach all individuals who need to develop their skills.
While the foregoing input remains relevant, leadership from the three local boards in Orange County has noted that many of the matters raised by stakeholders and community members are currently being addressed locally and regionally through various projects and initiatives. Throughout the remaining period of the PY 21- 24 planning cycle, local boards, the Regional Organizer, and workforce system partners will continue to examine opportunities to address these priorities.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
40 VIII. APPENDICES
Attachment 1: Stakeholder and Community Engagement Summary Attachment 2: Public Comments Received that Disagree with the 2023 Biennial Modification to the Program Year 2021-24 Regional Plan
Attachment 3: Signature Page
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
41 Attachment 1
A. Stakeholder and Community Engagement Summary (Attachment 1)
To facilitate the engagement of stakeholders in planning for regional workforce development collaboration and the development of the PY 2021-2024 Regional Plan, the three local boards in Orange County hosted a series of discussions outlined in the table below.
Recommendations and other input resulting from these discussions i s embedded within the content of the Orange RPU Regional Plan along with that of the local boards’ PY 21- 24 Unified Local Plan.
Mode of Outreach Target of Outreach Summary of
Attendance
Comments
Email, phone, social
media, local board
websites,
Eventbrite
WIOA Core
Program
Partners
76 individuals
registered and 43
attended
The meeting was well
attended by
representatives from
several core partner
agencies. We had
representatives from
the local boards,
adult schools,
community colleges,
conservation corps,
job corps,
community-based
organizations, and
housing authorities,
EDD.
Email, phone, social
media, local board
websites,
Eventbrite
CalFresh
Employment
and Training Partners
38 individuals
registered and 27
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
community-based
organizations,
Orange County
Social Services
Agency.
Email, phone, social
media, local board
websites,
Eventbrite
Child Support
Services Partners
27 individuals
registered and 18
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
42 Mode of Outreach Target of Outreach Summary of
Attendance
Comments
community-based
organizations,
Orange County
Social Services
Agency.
Email, phone, social
media, local board
websites,
Eventbrite
Competitive
Integrated
Employment Partners
34 individuals
registered and 28
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
ROP programs,
Goodwill Industry,
City of Irvine
Disabilities, and other
community-based
organizations.
Email, phone, social
media, local board
websites,
Eventbrite
English
Language
Learners Partners
22 individuals
registered and 19
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
community-based
organizations, adult
schools.
Email, phone, social
media, local board
websites,
Eventbrite
Re-Entry
Services Partners
40 individuals
registered and 24
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
community-based
organizations, State
Parole, Orange
County Sheriff,
Mental Health
Services
Email, social media,
local board
websites,
Eventbrite
Community at large,
Businesses,
Chambers, Core
Partners
66 individuals
registered and 33
attended
The meeting was
attended by
representatives from
the local boards,
community colleges,
community-based
organizations, adult
schools, Veteran
Serving
Organizations, EDD,
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
43 Mode of Outreach Target of Outreach Summary of
Attendance
Comments
State of California
WSB.
During the development of the biennial update to the Regional Plan, the local boards hosted a community and stakeholder forum on “ The Role of the Workforce System in Economic Recovery.” This forum was held in-person on November 17, 2022.
Mode of Outreach Target of Outreach Summary of
Attendance
Comments
Email, phone, social
media, local board
websites,
Eventbrite
WIOA Core Program
Partners, Community
Members,
Community Based
Organizations,
Education Partners
56 registered and 39
attended
The meeting was
attended by
representatives from
several core partner
agencies. We had
representatives from
the local boards,
adult schools,
community colleges,
community-based
organizations, and
EDD.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
44 Attachment 2
B. Public Comments Received that Disagree with the 2023 Biennial Modification to the PY 21-24 Regional Plan (Attachment 2)
The Orange Regional Plan was posted online for a 30-day public comment period.
There were no public comments received that disagreed with the regional plan.
Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan
45 Attachment 3
C. SIGNATURE PAGE (Attachment 3)
ORANGE PLANNING UNIT REGIONAL PLAN
The 2023 Regional P lan Modification represents the Orange Regional Planning Unit efforts to maximize and coordinate resources available under Title I of the Workforce Innovation and Opportunity Act. This Regional Plan Modification is submitted for the period July 1, 2023, through June 30, 2025, in accordance with the provisions of WIOA.
LOCAL BOARD CHAIRS LOCAL ELECTED OFFICIALS
ORANGE COUNTY WORKFORCE DEVELOPMENT BOARD COUNTY OF ORANGE BOARD OF SUPERVISORS
Signature Signature
Teri Hollingsworth Donald Wagner
Name Name
Chair, Orange County Workforce Development
Board Chair, Orange County Board of Supervisors
Title Title
Date Date
ANAHEIM WORKFORCE DEVELOPMENT BOARD CITY OF ANAHEIM COUNCIL
Signature Signature
Joe Paquette Ashleigh Aitken
Name Name
Chair, Anaheim Workforce Development Board Mayor, City of Anaheim Title Title
Date Date
SANTA ANA WORKFORCE DEVELOPMENT BOARD
CITY OF SANTA ANA COUNCIL
Signature Signature
Daisy Campos Valerie Amezcua
Name Name
Chair, Santa Ana Workforce Development Board Mayor, City of Santa Ana Title Title
Date Date