Latino Workforce in California Faces Wage Gaps and Automation Risks, Report Finds

Latino workers, who now constitute 40% of California's workforce and are projected to account for nearly 80% of new workers nationwide over the next six years, continue to face significant employment disparities, according to recent data briefs from the UCLA Latino Policy and Politics Institute (LPPI). Source

The LPPI's analysis of four key California regions—Los Angeles County, the Bay Area, the Central San Joaquin Valley, and the North San Joaquin Valley—reveals persistent wage gaps, especially for Latina workers, and a high risk of job automation among Latino workers. These findings underscore the need for targeted policy interventions to address these systemic challenges.

Latino workers are integral to California's economy, making up 40% of the state's workforce. Their projected growth to nearly 80% of new workers nationwide over the next six years highlights their critical role in the labor market.

The UCLA Latino Policy and Politics Institute is dedicated to addressing critical domestic policy challenges facing Latinos and other communities of color through research, leadership development, and civic engagement.

Wage Disparities:

• Latina workers earn the lowest wages among all racial or ethnic groups. In the Bay Area, the wage gap is particularly stark, with Latinas earning, on average, $30 less per hour than white men.

• Even with college degrees, Latino workers face wage disparities. In the Bay Area, college-educated Asian American and Pacific Islander (AAPI) men earn $24 more per hour than their Latino counterparts.

Risk of Automation:

• Latino workers are disproportionately employed in sectors at high risk of automation, such as agricultural labor, construction, and material moving. At least 30% of Latino workers in every region are vulnerable to displacement by technology.

Quotes:

"These profiles are a reminder that Latino workers are not only central to California’s economy, but that they face steep inequities—from wage gaps that persist even with college degrees, to high exposure to automation, to barriers in housing and health coverage," said Rodrigo Dominguez-Villegas, director of research at LPPI.

Implications:

The persistent disparities faced by Latino workers not only affect their economic well-being but also have broader implications for California's economy, given their significant role in the labor force.

Conclusion:

Addressing these systemic challenges requires targeted policy interventions, including increased investment in workforce development programs, improving digital access, and expanding social protections. Implementing these recommendations is crucial to ensuring an equitable and inclusive economy for all Californians.