California’s Labor Market and the Sustainable Development Goals (SDGs)
California faces significant long-term labor market headwinds. Labor force participation has dropped from 67% in 2000 to 62% now—mainly due to an aging population. The challenge is twofold: aggregate needs for a strong and sizable statewide labor force and longstanding gaps in participation by race, gender, nativity, and disability status. In a virtual event last week, PPIC researchers Julien Lafortune, Hans Johnson, and Marisol Cuellar Mejia discussed their new report on the topic.
Key Findings on California’s Aging Workforce and Participation
Julien Lafortune first went over key findings about California’s aging workforce and how participation among prime-age workers varies depending on their gender, race, family structure, and other factors. Illustrating how racial differences in participation are greater among demographic groups with lower education levels, he noted that addressing barriers experienced by the largest low participation groups—including less-educated partnered Latina women and single men—could yield significant workforce growth while also improving individual outcomes. Expanding on recent increases among workers 55 to 74 and closing education gaps also stand out as promising policy avenues. Ultimately, Lafortune stressed the complex intersectional nature of these factors, and the necessity for multi-faceted policy solutions.
Bright Spots and Positive Trends
Clearly, California has a challenging road ahead. Even so, panel members were quick to identify bright spots. Lafortune pointed to California’s rapid rebound from the pandemic recession. “We’re four years out; we’re basically recovered,” he said. “With the Great Recession, four years out participation was still declining and would decline for years to come.”
For Hans Johnson, it was the increasing participation rates among pre-retirement workers (ages 55 to 64), especially among those without a college degree: “Historically they have a substantially lower rate than college graduates.” He noted that now we’re seeing a “catch-up effect,” a trend he identified as especially positive because those are the key earning years for retirement.
For Marisol Cuellar Mejia, “another bright spot was the upward trajectory of prime-age women,” which helped narrow the gender gap. Women—particularly those with young children—have contributed most to the overall post-pandemic labor force rebound. In her view, increases in educational attainment, the flexibility of remote work, and more women entering the labor force through self-employment have likely played a role.
The Importance of Education and Policy Solutions
All three affirmed that focusing on education would have a positive impact across demographic groups. For Cuellar Mejia, policies that help women to formalize or start a microbusiness—with access to credit coupled with financial literacy training, and mentorship—could lead to higher female labor force participation, particularly among those with lower levels of educational attainment. Lafortune agreed. “We’re unlikely to see an increase in the overall size of our workforce the way we did over the past couple decades,” he said, pointing out how much pressure that will put on businesses and on state goals. “The imperative is perhaps even greater now for the state…to increase training and skills and entrepreneurship opportunities.”
Johnson pointed out that California’s currently under-enrolled community college system is a huge resource for those needing career training, “There are a lot of ways we can be very forceful and deliberate in leveraging our educational infrastructure in California,” he said, “to make sure that workers are able to fully participate in the labor market and find jobs that are in demand.”
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. | – Labor force participation rate – Gender wage gap – Employment rate of persons with disabilities |
| SDG 5: Gender Equality | Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life. | – Female labor force participation rate – Gender wage gap |
| SDG 4: Quality Education | Target 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational, and tertiary education, including university. | – Educational attainment level – Enrollment rate in community colleges |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 8: Decent Work and Economic Growth
The article discusses the labor force participation rate in California and the need for a strong and sizable statewide labor force. It also mentions longstanding gaps in participation by race, gender, nativity, and disability status. These issues are directly connected to SDG 8, which aims to achieve full and productive employment and decent work for all.
SDG 5: Gender Equality
The article highlights the participation of women in the labor force and the narrowing of the gender gap. It also mentions the need for policies that support women’s participation, particularly those with lower levels of educational attainment. These issues are related to SDG 5, which aims to ensure women’s full and effective participation and equal opportunities in economic life.
SDG 4: Quality Education
The article emphasizes the importance of education in improving labor force participation and addressing gaps in participation. It mentions the need for training, skills development, and entrepreneurship opportunities. These issues align with SDG 4, which aims to ensure equal access to quality education for all.
2. What specific targets under those SDGs can be identified based on the article’s content?
Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
The article discusses the need to address gaps in labor force participation by race, gender, nativity, and disability status. Achieving full and productive employment for all individuals, regardless of these factors, is a specific target under SDG 8.
Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life.
The article highlights the increasing participation rates among prime-age women and the need to further narrow the gender gap. Ensuring women’s full and effective participation in the labor market is a specific target under SDG 5.
Target 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational, and tertiary education, including university.
The article emphasizes the importance of education in improving labor force participation and mentions the under-enrollment in community colleges as a resource for career training. Ensuring equal access to quality education, including technical and vocational education, is a specific target under SDG 4.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
The article provides several indicators that can be used to measure progress towards the identified targets:
– Labor force participation rate: This indicator measures the percentage of the working-age population that is economically active and either employed or actively seeking employment. It can be used to assess progress towards achieving full and productive employment for all (Target 8.5).
– Gender wage gap: This indicator measures the difference in earnings between men and women. It can be used to track progress towards equal pay for work of equal value (Target 8.5) and gender equality in economic life (Target 5.5).
– Employment rate of persons with disabilities: This indicator measures the percentage of persons with disabilities who are employed. It can be used to assess progress towards full and productive employment for persons with disabilities (Target 8.5).
– Female labor force participation rate: This indicator measures the percentage of women in the working-age population who are economically active. It can be used to track progress towards women’s full and effective participation in the labor market (Target 5.5).
– Educational attainment level: This indicator measures the level of education attained by individuals. It can be used to assess progress towards equal access to quality education (Target 4.3).
– Enrollment rate in community colleges: This indicator measures the percentage of individuals enrolled in community colleges. It can be used to track progress towards equal access to technical and vocational education (Target 4.3).
4. SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value. | – Labor force participation rate – Gender wage gap – Employment rate of persons with disabilities |
| SDG 5: Gender Equality | Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic, and public life. | – Female labor force participation rate – Gender wage gap |
| SDG 4: Quality Education | Target 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational, and tertiary education, including university. | – Educational attainment level – Enrollment rate in community colleges |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: ppic.org
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