According to many economic indicators, California’s economy has recovered from the swift and deep recession that accompanied the COVID-19 pandemic. However, the state still faces significant market headwinds in the long term: Despite low unemployment and high job openings, labor force participation continues to decline across California’s diverse regions, fueled largely by demographic shifts and an aging population. The trend is projected to continue, which poses new economic challenges for California and the country as a whole. 

A research team from the Public Policy Institute of California will seek to understand this trend by conducting an in-depth analysis of the drivers of labor force participation in California, which has not recovered to pre pandemic levels. Using detailed survey data, the team will identify potential drivers of differences across socioeconomic and demographic characteristics (race, gender, age, geography, and more). A multi-stakeholder engagement process will complement quantitative analyses to capture sentiments and potential solutions from the field and broaden uptake of findings. Their findings aim to inform state economic policy and drive forward-looking conversations about how policies could respond to anticipated demographic changes in the state.