Will middle class workers flee the Central Coast? Study finds workforce is ‘losing hope’
A massive exodus of middle class workers could happen in San Luis Obispo County in the coming years if something isn’t done to address economic fears, a new study revealed.
The Hourglass Project, a local business initiative, recently surveyed 540 registered voters, ages 18 to 54, in San Luis Obispo and northern Santa Barbara counties to determine the challenges faces the Central Coast workforce.
According to the results, the tenuous economic climate is the biggest concern for many local workers — and the reason many could choose to leave the area.
“Despite what feels like good economic times right now, the fact is our local economy has consistently performed below state and national averages for at least the past two decades,” Hourglass Project CEO Melissa James said in a news release.
“What we found is a workforce that is losing hope, struggling to get by and considering leaving the area,” she added.
The study comes at a time of economic uncertainty in the region. In this decade, one of San Luis Obispo County’s largest employers, PG&E, will shutter Diablo Canyon nuclear power plant — a move that many worry will irreparably damage the local economy.
Though local officials successfully petitioned PG&E for an $85 million settlement that could in part help fund new economic initiatives to fill the gap left by Diablo Canyon, fears about the region’s economic future persist.
Workforce survey finds ‘crumbling faith in the California Dream’
The findings of the 28-question survey revealed “a regional workforce that is struggling to get by, let alone get ahead, and is seriously considering leaving the area,” according to the report.
“In stark contrast to strong economic indicators, the survey reveals crumbling faith in the California Dream and a population that sees upward mobility and home ownership is unattainable,” read the report. “The overwhelming sentiment is that making a life on the Central Coast is difficult and likely to become untenable for the next generation.”
The survey found that nearly 75% of respondents believe the “California Dream” and the opportunity for upward mobility are harder to obtain on the Central Coast than the rest of California. Only 7% considered it easier.
In addition, 86% of survey takers said they didn’t feel like their children and other young people would be able to live in the region once they are grown. And more than half of respondents said they believed the standard of living for middle-class workers in the area is actually getting worse.
Many also indicated they are struggling just to get by in the current climate.
Only one of the 529 respondents said they felt Central Coast housing was “affordable” — 60% called it “seriously unaffordable,” according to the report.
About 35% of workers said they would need to borrow money or run up a credit card to cover a $500 emergency, and the same number said they don’t have any money set aside in savings.
According to the report, 4 out of 5 households have credit card debt, student loans or other non-mortgage borrowing debts. More than 1 in 10 owe more than $50,000.
“These results are distressing,” Ty Safreno, CEO of Trust Automation and Hourglass Project board chair, said in the release. “People are hurting far worse than we realized, and this deep anxiety is not just a problem for those families and a weakness in our social fabric; it also signals problems for the entire regional economy, which already is constrained by many of these issues.”
Who is most likely to leave SLO County, California?
The study found that several people are most likely to leave the region because of economic factors.
Of those who rated their finances as “not secure,” 60% said they are “very likely” to leave, according to the report.
Other factors like age and ethnicity also seem to play roles in people’s decisions to leave the area.
According to the report, four in five African American respondents indicated they planned to leave the Central Coast. The same went for three in five Latinx respondents.
Nine out of every 10 respondents in the 18-to-24 age group said they are likely to leave, and half of respondents in that age group said they are “very likely” to move away, according to the report.
Can workforce flight be stopped?
Hourglass Project representatives said the results of the survey show how important it is to work together to remedy these concerns now, before the economic situation shifts.
“The survey results confirm the notions that sparked and drove the work of the Hourglass Project over the last year – that the Central Coast economy is not working as well as we would like for many Central Coast residents,” Safreno said in the release.
“These findings underscore the need for bold action to accelerate growth of higher-paying jobs, with the ultimate goal of creating an economy that works better for everyone,” Safreno said. “That’s exactly what the Hourglass Project is taking on.”
James added that the Hourglass Project is working on a 10-year jobs action plan that would “forge a more resilient, inclusive, regional economy.” It’s expected in March.
This story was originally published February 5, 2020 at 12:46 PM.
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