Memorandum Date: April 17, 2026 To: Honorable Mayor and Members of the City Council Mike Futrell, City of Riverside City Manager From: USC Sol Price School of Public Policy Graduate Students: Hilda Aguilar-Jurado, Vanessa
Bautista,
Oscar
Cisco,
Montserrat
Pineda
Subject: Riverside’s Economic Navigation and Expansion of Workforce (RENEW) EXECUTIVE SUMMARY The City of Riverside is the sixth-largest city in Southern California and a major economic hub in
the
Inland
Empire.
Through
its
Economic
Development
Strategic
Plan,
the
City
has
identified
Five
Areas
of
Excellence
to
guide
future
growth:
Medical,
Aerospace,
Green
Technology,
Arts
and
Tourism,
and
General
Technology.
While
Riverside
is
well-positioned
for
expansion,
it
faces
growing
misalignment
between
its
workforce
and
the
needs
of
local
employers.
As a result, jobs remain unfilled, talent leaves the region, and economic opportunities are lost. At the
same
time,
a
significant
share
of
residents
commute
outside
the
city
for
employment,
limiting
Riverside’s
ability
to
generate
local
income
and
economic
growth.
Despite
strong
institutions
and
industry
potential,
the
City
lacks
a
coordinated
system
to
connect
workforce
development
with
development
demand.
This memo proposes a three-part strategy to close this gap: 1)
Building a workforce development system anchored in high-demand sectors such as Medical
&
Biotechnology,
while
also
exploring
subsectors
such
as
Aerospace
Medicine.
2)
Generate demand for local talent by supporting industry growth and reducing development
barriers.
3)
Strengthen partnerships between employers, education providers, and workforce organizations.
PROBLEM STATEMENT Riverside faces a growing disconnect between its workforce and the needs of local employers.
Despite
rising
demand
for
skilled
workers,
our
team's
survey
finds
that
70%
of
employers
struggle
to
fill
roles,
and
many
residents
commute
outside
the
city
for
employment.
This
misalignment
between
workforce
supply
and
industry
demand
results
in
talent
loss,
unfilled
jobs,
and
missed
economic
opportunities.
PROPOSED SOLUTIONS To resolve these workforce and economic development challenges, we recommend that the City implement
three
innovative
workforce
initiatives
that
align
with
Riverside’s
Economic
Development
Strategic
Plan,
strengthen
partnerships
with
stakeholders
and
intergovernmental
collaboration,
and
increase
employer
engagement.
1. Implement Innovative Workforce Initiatives that Align with Riverside’s Economic Development
Strategic
Plan
a. Formalize Education-to-Employment Pipelines in STEAM To expand access to high-wage jobs, reduce skill shortages, and increase retention of local
graduates,
Riverside
should
establish
MOUs
with
initial
employers
to
complete
an
education-to-employment
pipeline
in
STEAM
that
also
encompasses
academic
opportunities
that
span
middle
school
through
university.
The
pipeline
should
also
include
pre-apprenticeship
and
state-approved
apprenticeship
opportunities
as
an
option.
By
formalizing
education-to-employment
pipelines
in
STEAM
careers,
the
city
has
an
opportunity
to
grow
the
next
generation
of
its
workforce.
b. Launch a Medical and Biotechnology Workforce Pilot Program The Medical and Biotechnology Workforce Pilot Program should be designed to proactively
address
the
current
and
future
workforce
demand
in
the
healthcare
industry.
Additionally,
one
small
cohort
should
be
dedicated
to
career
exploration
in
emerging
interdisciplinary
fields
at
the
intersection
of
healthcare
and
advanced
technology,
such
as
Aerospace
Medicine.
Lastly,
in-house
workforce
services
can
include,
but
are
not
limited
to,
career
guidance,
supportive
services,
skills
development
workshops,
resume
development,
and
job
search
assistance.
Partnerships
with
local
higher
education
institutions
and
local
employers
will
need
to
be
established.
Riverside’s
healthcare
sector
is
seeing
significant
investment
and
is
expected
to
continue
to
grow
dramatically
over
the
next
decade.
Major
developments
like
UCR’s
20-acre
medical
complex
and
Riverside
Community
Hospital’s
$912
million
expansion
stimulate
the
economy
by
increasing
the
number
of
high-quality
jobs.
c. Invest in Expanding the Workforce Development Team The City of Riverside should hire at least two additional full-time staff –a workforce development
project
manager
and
a
business
engagement
project
manager.
A
well-resourced
team
can
lead
the
city’s
workforce
initiatives,
service
delivery,
and
grant
opportunities,
and
meet
the
core
benchmarks
needed
to
successfully
build
a
resilient
workforce.
A
workforce
development
project
manager
can
directly
support
residents
with
training
coordination,
case
management,
job
search
assistance,
skills
development,
supportive
services,
and
other
career
services.
A
business
engagement
project
manager
can
build
relationships
with
employers,
identify
hiring
needs,
continue
the
employer
engagement survey, secure job placements, and overall ensure services remain relevant to industry
needs.
In
addition,
the
city
should
assign
additional
fellows
or
interns
to
assist
the
workforce
team
with
administrative
tasks
and
help
with
the
delivery
of
services.
By
having
additional
staff,
the
City
can
launch
its
own
industry-specific
workforce
programs
targeted
for
Riverside
residents.
2. Generate Demand by Making Riverside Easier to Invest In a.
Develop an Investment-Ready Site Portfolio The City should identify, assess, and market a portfolio of development-ready sites aligned
with
priority
industries.
These
sites
should
have
clear
information
on
land
use,
infrastructure
capacity,
and
environmental
constraints
to
reduce
uncertainty
for
investors.
The
City
can
also
work
with
property
owners
to
identify
opportunities
to
better
utilize
underused
land
and
support
voluntary
subleasing
or
partnership
arrangements
that
allow
owners
to
generate
additional
value
from
their
properties.
b.
Fund Infrastructure with Enhanced Infrastructure Financing Districts EIFDs can be used to fund critical infrastructure such as parking structures and utilities
that
support
higher-density
employment
uses.
Without
adequate
infrastructure
capacity,
including
parking,
the
City’s
ability
to
support
growth
in
healthcare,
green
technology,
and
advanced
manufacturing
is
limited. c. Align Incentives with Job Creation The City should leverage the Capital Investment Improvement Program (CIIP) as a performance-based
incentive
to
attract
and
retain
firms
that
commit
to
reinvesting
in
their
operations
and
workforce.
Incentives
should
be
negotiated
and
tied
to
measurable
outcomes,
including
job
creation,
workforce
partnerships,
and
local
hiring
priorities.
3. Align Workforce, Education, and Industries Through Strategic Partnerships a.
Establish a RENEW Advisory Board The City should establish a RENEW Advisory Board that hosts convenings with key employers,
workforce
boards,
and
training
providers
to
identify
hiring
needs,
coordinate
workforce
programs,
and
maintain
alignment
between
labor
demand
and
training
efforts.
These
convenings
will
allow
the
City
to
respond
in
real
time
to
industry
trends
and
workforce
gaps.
Through
a
collaborative
approach,
the
City
can
strengthen
its
role
in
supporting
Riverside’s
five
key
sectors
and
expanding
opportunities
for
residents
in
growing
sectors.
b.
Establish Public-Private Partnerships to Scale Workforce Initiatives
To scale these workforce initiatives, the City should establish public-private partnerships
managed
by
the
workforce
team
to
braid
public,
private,
and
philanthropic
funding
sources
to
expand
workforce
programs.
This
includes
federal
funding,
state
workforce
grants,
county
grants,
employer
contributions,
and
philanthropic
grants
to
expand
its
workforce
programs.
Key
actions
include
designating
a
staff
lead,
developing
a
centralized
funding
tracker,
and
implementing
employer
co-investment
strategies
such
as
wage-sharing
for
apprenticeships.
Philanthropic
capital
can
support
workforce
innovation
and
services
not
typically
covered
through
the
Riverside
County
Workforce
Development
Board’s
restricted
funds,
including
the
Workforce
Innovation
and
Opportunity
Act
(WIOA).
When
partnerships
are
incorporated,
proposals
become
more
competitive
and
can
lead
to
multi-source
funding.
KEY STAKEHOLDERS Shaping the economic future of Riverside will require intentional partnerships with stakeholders who
can
help
the
city
address
its
current
challenges
and
achieve
its
goals.
Educational Partners
Riverside Unified School District Alvord Unified School District UC Riverside Cal Baptist University Riverside City College La Sierra University Industry Partners
Kaiser Permanente Healthcare
Riverside Community Hospital
PRISM Aerospace Inc. Collins Aerospace Systems
Workforce Development Partners
Riverside County Workforce Development Board
Inland Empire Community Foundation
Rubidoux Youth Opportunity Center
Greater Riverside Chambers of Commerce
IMPLEMENTATION PLAN Short Term: Riverside will focus on building internal capacity and laying the foundation for a coordinated
workforce
system.
This phased approach ensures Riverside delivers immediate workforce
outcomes
while
building
a
scalable
system
for
long-term
industry
growth.
The City
will
hire
dedicated
staff,
analyze
data
on
employer
needs
and
labor
market
trends.
Early
actions
also
include
identifying
funding
opportunities
and
designing
incentive
strategies
tied
to
job
creation.
● Key Actions: ○ Hire two full-time employees to establish a dedicated workforce development team
○ Establish the RENEW Advisory Board to align programming and curriculum with current
workforce
needs
○ Design targeted incentive packages tied to job creation outcomes Long Term: Looking ahead, Riverside will transition from planning to implementation by launching
workforce
programs
and
expanding
partnerships
across
priority
industries.
The
City
will
activate
workforce
pipelines,
engage
employers
through
regular
convenings,
and
recruit
new
businesses
aligned
with
its
economic
development
goals.
The
City
will
also
outline
clear
workforce
pathways
to
improve
accessibility
for
residents.
Riverside will evaluate outcomes, refine strategies, and assess long-term factors such as land use and
housing
to
support
sustained
economic
growth.
● Key Actions: ○ Formalize MOUs with education and employers, launch regular industry convenings.
○ Implement workforce pipelines, including enrolling 60 participants in the medical industry
workforce
pilot
program
with
job
placement
pathways.
○ Recruit new businesses and publish workforce pathways across sectors. ○ Track higher education enrollment, placement rates, wage outcomes, and employer
satisfaction
PROJECT BUDGET AND FUNDING STRATEGIES We estimate that hiring two full-time employees (FTE) to help support these initiatives will cost $180,000
per
year.
This
amount
covers
salaries,
benefits,
and
any
additional
administrative
costs,
as
well
as
program
alignment
to
ensure
effective
execution
and
long-term
success.
The
City
of
Riverside’s
two-year
fiscal
budget
cycle
allows
for
financial
planning
every
two
years,
with
a
mid-check
in
after
year
one
to
ensure
goals
are
met.
The
City
Council
approved
the
FY
2024-2026
Biennial
Budget
($1.5
billion).
This
includes
a
$1.4
billion
operating
budget
and
a
$158.1
million
capital
budget.
In
this
larger
context,
this
$180,000
investment
positions
Riverside
to
unlock
grant
funding
and
employer
partnerships,
directly
addressing
the
3,740+
unfilled
biotech/healthcare
roles.
This approach minimizes reliance on the City’s general fund while
maximizing
external
funding
leverage.
Riverside can significantly reduce new program costs by leveraging funds through public-private partnerships,
intergovernmental
relationships,
and
applying
for
philanthropic
grants.
In
addition,
by
integrating
state-level
tax
credits
with
federal
Opportunity
Zones,
the
City
will
utilize
Enhanced
Infrastructure
Financing
Districts
(EIFDs)
to
fund
the
critical
utilities
and
parking
necessary
for
high-density
industry
growth.
Furthermore,
leveraging
the
Capital
Investment
Improvement
Program
(CIIP)
alongside
private
philanthropic
grants
allows
Riverside
to
offer
tailored incentive packages that reward firms for local hiring and long-term workforce reinvestment.
CONCLUSION Riverside’s workforce challenge is not a lack of resources, but a lack of alignment. The City has strong
educational
institutions,
growing
industries,
and
a
talented
workforce,
yet
these
assets
are
not
fully
connected.
What
is
needed
is
strategic
coordination
through
consistent
convenings
and
dedicated
capacity
to
align
workforce
development
with
industry
demand.
Through
the
RENEW
framework,
Riverside
can
build
a
coordinated
workforce
system,
support
industry
growth
in
the
Five
Areas
of
Excellence,
and
strengthen
partnerships
across
education
and
employers.
By
investing
in
workforce
development
capacity,
the
City
can
better
leverage
public-private
partnerships,
external
funding,
improve
employer
retention,
and
create
education-to-employment
pipelines
in
STEAM
for
residents.
This
approach
positions
Riverside
to
capture
local
economic
growth
and
reinforce
its
role
as
a
leading
economic
hub
in
the
Inland
Empire.
APPENDIX A: Building Riverside's Local Talent: Employer Feedback Survey: ● This preliminary employer survey was conducted by our team in November 2025 to gather
input
from
local
employers
to
better
understand
workforce
needs
across
key
sectors
in
Riverside.
We
received
103
responses.
The
feedback
helped
identify
in-demand
jobs,
skill
gaps,
and
ways
to
strengthen
local
hiring.
The
information
received
helped
guide
our
proposed
solutions.
● The survey instrument consisted of multiple-choice, short-answer, and open-ended questions.
● The survey was distributed electronically to employers within the City of Riverside across
all
industries,
with
a
two-week
turnaround.
Responses
from
103
employers
were
received
and
analyzed.
Participation
was
voluntary,
and
all
responses
were
anonymous
to
protect
respondent
confidentiality
and
encourage
honest
responses.
● Listed below are some survey results: ○ 80% of employees reported they do not currently participate in any local hiring or workforce
development
programs.
○ Approximately 70% of employers reported difficulty filling at least one occupation/job
role.
○ Nearly 30% of employers reported that fewer than 25% of their employees live within
the
City
of
Riverside.
○ 79% of employers reported they currently do not host any interns. ○ When asked what types of city-led activities they were interested in participating in,
35%
of
employers
reported
they
were
not
interested
at
this
time,
while
another
19%
reported
they
were
interested
in
hosting
interns,
and
17%
reported
they
were
interested
in
having
their
employees
participate
as
guest
speakers
in
city-led
activities.
○ When asked what types of programs or incentives would encourage their organization
to
hire
local
talent,
the
top
three
items
selected
include:
tax
credits
for
hiring
(14%),
partnerships
with
local
colleges
(14%),
and
grants
(13%)
○ The top three skills gaps reported by employers include: problem-solving skills (14%),
communication
skills
(12%),
and
customer
service
(10%).
○ When asked what industry-recognized certifications were in demand in their company,
most
responses
fell
under
the
following
industries:
Healthcare,
Construction,
Legal,
General
Technology,
Education,
Manufacturing,
and
Arts,
Culture
&
Tourism.
*Raw data is available upon request for verification and further review by City staff or project partners.
APPENDIX B:
Labor Market Analysis of Riverside’s 5 Areas of Excellence O
VERVIEW
This appendix evaluates Riverside’s five identified areas of excellence—Medical, General Technology,
Arts
&
Tourism,
Green
Technology,
and
Aerospace—using
city-level
employment,
wage,
and
establishment
data.
The
purpose
is
to
compare
each
sector’s
economic
scale,
growth
trajectory,
and
contribution
to
Riverside’s
wage
base
in
order
to
inform
strategic
economic
development
priorities.
M
ETHODOLOGY
Because several of the City’s areas of excellence represent broad economic concepts rather than single
industries,
this
analysis
uses
conservative
NAICS-based
proxy
groupings
derived
from
EDD
Quarterly
Census
of
Employee
Wages
(QCEW)
data.
QCEW
data
is
used
to
compare
establishments,
total
annual
wages,
and
wage
growth
from
2019
to
2024.
This
approach
ensures
consistency
across
sectors
while
providing
a
reliable
measure
of
economic
output
at
the
city
level.
C
OMPARISON
A
CROSS
THE
5 A
REAS
OF
E
XCELLENCE
Table B-1. Economic Comparison of Riverside’s 5 Areas of Excellence (2024) Area of Excellence Annual Wages
Est. Employment
Avg Wage per Employee
Wage Growth (2019–2024) Medical $1.73B 25,564 ~$67,700 +$520M (+42.9%) General Technology $398M ~5,200 ~$76,500 +$149M (+60.0%)
Arts & Tourism $506M ~20,200 ~$25,000 +$142M (+38.9%) Green Technology $71.7M ~1,300 ~$55,200 +$22.8M (+46.5%)
Aerospace $14.8M ~210 ~$70,500 +$2.8M (+23.0%)
Source: EDD QCEW Note: Employment figures represent average employment based on EDD data. Annual wages reflect total reported
wages
by
EDD
QCEW.
Industry
groupings
are
based
on
NAICS
proxy
categories
to
align
with
the
City’s
defined
areas
of
excellence.
Assessment by Sector ● Medical: High-scale, high-wage sector with sustained growth; strongest near-term opportunity
for
workforce
alignment
and
wage
capture
● General Technology: Highest wage-per-employee sector with strong growth; best positioned
for
long-term
expansion
but
smaller
current
footprint
● Arts & Tourism: Large employment base but low wage output per worker, limiting overall
impact
on
income
growth
● Green Technology: Moderate wages and growth, but limited current scale; emerging sector
with
longer-term
potential
● Aerospace: High-wage niche sector, but limited presence constrains near-term impact
Table B-2. Industry Comparison: Riverside vs Region vs State Area of Excellence Riverside Share of Jobs
Regional Share
State Share
Relative Strength
Medical 17.1% ~13–14%
~12–13%
Above average concentration General Technology
~4–5% ~6–8% ~8–10%
Below average concentration Arts & Tourism ~17–18% ~15–16% ~14–15% Slightly above average Green Technology ~2–3% ~3–4% ~3–5% At or below average
Aerospace <1% ~2–3% ~2–4%
Significantly below average
Source: EDD QCEW
K
EY
F
INDINGS
A comparison of Riverside’s five areas of excellence shows that the medical sector stands apart in
both
economic
scale
and
relative
concentration.
With
approximately
$1.73
billion
in
annual
wages
and
17.1%
of
total
employment
,
healthcare
exceeds
all
other
sectors
in
total
economic
output
while
also
representing
a
higher
share
of
employment
than
regional
and
statewide
averages.
This
indicates
that
healthcare
is
not
only
Riverside’s
largest
sector,
but
also
a
relative
economic
strength
within
its
industry
mix.
By contrast, General Technology demonstrates higher wages per employee and strong growth, but
remains
less
concentrated
locally,
suggesting
longer-term
potential
rather
than
immediate
impact.
Arts
&
Tourism
supports
a
large
share
of
employment
but
produces
significantly
lower
wages
per
worker,
limiting
its
contribution
to
overall
income
growth.
Green
Technology
and
Aerospace,
while
strategically
relevant,
remain
comparatively
small
in
terms
of
current
economic
footprint.
S
TRATEGIC
I
MPLICATION
These findings suggest that Riverside should distinguish between sectors with long-term strategic
potential
and
those
capable
of
driving
near-term
economic
impact.
The
medical
sector
represents
the
strongest
opportunity
to
increase
local
wage
capture
due
to
its
scale,
growth,
and
existing
economic
footprint.
Incorporating
workforce
development
into
the
City’s
broader
economic
development
strategy,
particularly
within
healthcare,
would
allow
Riverside
to
better
connect
residents
to
one
of
its
largest
sources
of
economic
activity.
This
approach
prioritizes
alignment
with
existing
industries
rather
than
relying
solely
on
attracting
new
sectors,
positioning
the
city
to
strengthen
its
economic
base
more
effectively.
APPENDIX C: The 2024 Subregional Workforce Demand Assessment: Riverside helped us identify the top five growing occupations that fall under each industry identified by Riverside’s 5 Areas of Excellence and
influenced
our
proposed
solutions.
This
data
can
be
used
by
Riverside
to
establish
partnerships
with
employers
and
educational
institutions
that
may
target
these
occupations.
AEROSPACE & DEFENSE – Top 5 Occupations 1. Industrial Machinery Mechanics 2. Electrical & Electronics Engineering Technicians 3. Mechanical Engineers 4. First-Line Supervisors of Transportation & Material-Moving Workers 5. Heavy and Tractor-Trailer Truck Drivers BIOTECHNOLOGY & MEDICAL – Top 5 Occupations 1. Registered Nurses 2. Medical and Health Services Managers 3. Licensed Vocational Nurses 4. Dental Hygienists 5. Radiologic Technologists ARTS, CULTURE & TOURISM – Top 5 Occupations 1. General and Operations Managers 2. Marketing Managers 3. Meeting, Convention, and Event Planners 4. Media and Communications Workers (Editors, Writers, etc.) 5. Food Service Managers GREEN TECHNOLOGY & SUSTAINABILITY – Top 5 Occupations
1. Electricians 2. Plumbers, Pipefitters, and Steamfitters 3. Construction and Building Inspectors 4. First-Line Supervisors of Mechanics, Installers, and Repairers 5. Civil Engineers GENERAL TECHNOLOGY – Top 5 Occupations 1. Software Developers 2. Computer Systems Analysts 3. Computer User Support Specialists 4. Network and Computer Systems Administrators 5. Web Developers and Digital Interface Designers APPENDIX D Sample workforce program budget when applying for grant funding:
Budget Line Item Costs Details
Salaries (2 FTE) $150,000 Workforce Development Project Manager & Employer Engagement Project Manager Benefits Expenses $30,000 Health insurance, payroll taxes, FICA (staff only) Supportive Services $69,000 Work attire, shoes, gas/transportation assistance, etc., for 60 participants Training Scholarships $52,500 Healthcare credentials & certifications (15 participants) Work Experience Wages $432,000 60 participants × 400 hours @ $18.00/hour Administrative & Program Costs $11,600 Payroll processing, supplies, travel, and program coordination TOTAL PROGRAM BUDGET $745,100 Leveraged across city, county, state, employers, and philanthropic funding sources