People are the backbone of a vibrant, competitive economy, helping drive the region forward. As the cost of living in the Bay Area increases and with many families struggling to make ends meet, it is important to ensure that appropriate supports such as job skills training and childcare are provided to help improve workers’ productivity and financial stability.
JOB SUPPLY AND UNEMPLOYMENT
Between July 2008 and July 2009, the East Bay’s labor force (number of individuals currently employed or actively seeking employment) gained 7,700 (0.6 percent) new workers. During the same period, the number of jobs in the region fell 48,200 (-4.7 percent), a reflection of the current recession and similar trends throughout the nation during this time. As the recession spread from predominantly housing-related sectors to all areas of the economy in late 2008, the San Francisco and San Jose areas began to see severe losses as well, losing 51,000 jobs and 42,800 jobs respectively during the same 12-month period.
A large number of layoffs in virtually every sector increased the East Bay’s unemployment rate dramatically over the past 12 months, climbing from 6.5 percent in July 2008 to 11.3 percent in July 2009. Unemployment rates throughout the Bay Area and for the State also increased during this period, rising from 5.3 percent to 9.3 percent in San Francisco, from 6.3 percent to 11.8 percent in San Jose, and from 7.6 percent to 12.1 percent in California as a whole.
INCOME
Higher incomes provide a higher quality of life for residents, giving them the ability to afford not only the basic goods and services necessary to maintain well being, but also to work toward economic self-sufficiency, build savings, and make large-scale purchases like homes. Although per capita personal income increased in the East Bay from $49,353 in 2006 to $51,516 in 2007, many families continue to struggle to make ends meet. This increase in income does not reflect simultaneous increases in costs of living and also predates the severe effects of the current financial crisis.
CONSUMER PRICE INDEX
The Consumer Price Index for all Urban Consumers (CPI-U) is calculated by the United States Bureau of Labor Statistics and indicates the average spending power of a region’s residents. The CPI-U tracks inflation through an index of the change in prices of a “basket of goods and services,” comparing them to the 1984 base price of 100. For example, the Bay Area’s CPI-U in 2008 of 222.7 indicates a 122 percent rate of inflation since 1984.
Year-over-year fluctuations in CPI indicate prices as a whole, and the ability of an area’s residents to afford various goods and services. Between 2007 and 2008 the CPI-U for the Bay Area region increased 3.1 percent, a slower rate of increase than that of the entire United States City Average, which increased 3.8 percent during the same time period. Between 2003 and 2008 consumer prices in the Bay Area increased over 13 percent, again, a slower rate of growth than the United States City Average which increased 17 percent.
SELF-SUFFICIENCY STANDARD
While income is one indicator of economic prosperity, it does not take cost of living into account. The Family Economic Self-Sufficiency Standard1, is an alternative to the Federal Poverty Line that calculates how much income a family needs to meet their basic needs without subsidies of any kind. It was estimated that one in four households do not earn enough income to make ends meet. In Alameda County, a family of four (two adults and two school-age children), must earn $51,708 annually to make ends meet. It takes a similar amount in Contra Costa County for the same family to get by, needing to earn $52,142 per year.
CHILDCARE AVAILABILITY
In addition to being skilled, well-educated and experienced, a productive and stable workforce needs further support to boost productivity. Finding quality, affordable childcare is one of the major challenges that working families face. Access to good, reliable care enables parents to work without worrying about the welfare of their children. In 2007, there were nearly 270,000 East Bay children in need of childcare with only about 92,000 spots available in local childcare facilities. While the supply of childcare has slowly increased, two-thirds of children ages 0-13 in the East Bay and across the Bay Area are still in need of childcare.
CALWORKS CASELOADS
Though the entire nation is struggling to withstand and recover from the current housing and credit crises, the day-to-day challenge to simply make ends meet persists especially for those who have consistently endured the effects of economic instability. The California Work Opportunity and Responsibility to Kids program (CalWORKs) is California’s welfare program and provides another indicator of how residents are faring. As of May 2009, the East Bay carries the almost half (46.2%) of all CalWorks caseloads in the Bay Area. Over the May 2008–09 period, CalWorks caseloads increased 5.1% in Alameda County and 10.8% in Contra Costa County.
EDUCATIONAL ATTAINMENT
A highly skilled and educated workforce is a huge attraction to companies interested in locating in the Bay Area. Whether residents seek out career training, certificate programs, or university degrees, it is important to encourage people of all ages to pursue education beyond high school. In 2007, 22% of Alameda County residents and 23% of Contra Costa residents were high school graduates and had not yet obtained any further education. The majority of East Bay residents obtained higher degrees with 43% of the population over 25 years of age in Alameda County and 41% in Contra Costa County possessing an Associate’s degree or higher. According to a report from the Center for Law and Social Policy, studies show that one year of college can double an individual’s yearly earnings and even further, earning an Associate degree can increase yearly earnings by 403%. Encouraging individuals to pursue their education past high school gives them the opportunity to attain a higher quality of life by becoming more competitive in the workforce and widening the pool of jobs available to them.
JOB-HOUSING BALANCE
A balance in the distribution of job and housing centers is critical to an economic and environmentally sustainable future for the East Bay. As county to county commute pattern and transportation mode data indicate that a majority of East Bay residents travel by car and many also travel to other Bay Area counties for work, employment centers close to housing could reduce pollution and vice versa.
In 2008 the jobs to housing balance in the East Bay was under one house to one worker. When comparing both East Bay counties the ratio of jobs to housing is much higher in Alameda County (approximately 1.2 jobs to each unit) than in Contra Costa County (approximately .90 jobs to each unit). In the San Francisco and Santa Clara regions the ratio of jobs to housing was much higher, indicating insufficient housing stock to accommodate a high number of jobs. In the San Francisco Metro District the ratio was 1.24 jobs to each unit (2.7 for the City of San Francisco). In the Santa Clara Metro District the ratio was 1.5 jobs to each unit.
CRIME RATES BY TYPE
Safety is one of the top concerns of individuals and businesses when choosing a place of residence and is a critical measure of well-being. Crime tends to rise during periods of economic stress. After bottoming out in 2004, the violent crime rate in the Bay Area is beginning to climb. In Alameda and Contra Costa counties, the violent crime rates are 819 and 474 crimes per 100,000 people, respectively. For property crimes, the rate in the Bay Area has been steadily climbing since 2000, but has dropped in 2007 to 1742 crimes per 100,000. This trend for the Bay Area rate holds true for Alameda County with a property crime rate of 2,557 per 100,000 in 2007, down from 2,708 crimes in 2006. In Contra Costa County, however, the property crime actually went up in 2007, from 2,170 in 2006 to 2,215 in 2007. As crime becomes a top headline, it is important to encourage local government and law enforcement to institute programs that prevent crime and increase safety and security.
1 Please visit www.insightcced.org to learn more about the Self-Sufficiency Standard