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Gary Orfield

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Southern California's Broken Economic Ladder

Posted: 12/21/11 12:30 PM ET

Southern California is in serious decline and the future of the great world megalopolis that stretches from the northern reaches of metro Los Angeles through the large and rapidly growing communities to the south and across the Mexican border is under severe threat.

A much bleaker picture of joblessness and opportunity in Southern California exists than political leaders have recognized. A new UCLA study finds not only a threatened middle class but also many more people clinging to the bottom of the state's social and economic ladder. Issued by the Civil Rights Project/Proyecto Derechos Civiles, the LASANTI Project report looks at opportunity and equity in the vast 150-mile-long urbanized corridor of Southern California that runs from Los Angeles to greater Tijuana. Inclusive of underemployment rates -- percentages of workers who hold less than fulltime jobs because they cannot find fulltime work -- rather than just the numbers of unemployed, the report provides a more complete measure of the health of the labor market and highlights its ties to California's educational failures.

Southern California, one of the world's largest and most diverse urban complexes, is rapidly becoming a region of profound economic and geographic polarization. Joblessness has more than doubled during the recession and it is extremely high for black and Latino males. In addition to unemployment, the report reveals, for example, that in September 2011 in Los Angeles County 25% of Latinos and 34% of African Americans were underemployed -- forced to accept part-time work. The former white majority of Southern California has become a minority and we are failing to give millions of nonwhite youth the education they must have to survive and sustain families in years to come. The future of this region belongs to what is already a 75% nonwhite population in Southern California's public schools. Yet the good low skill jobs in manufacturing on the U.S. side of the border are now largely gone, a substantial number lost to the factories in Northern Baja but many also to Asia. The many construction jobs which once flourished during the housing boom have collapsed in one of the nation's most spectacular implosions. Southern California is firing many thousands of its teachers and has slashed state funds for college and created soaring tuitions and severely diminished student services just as the job market is contracting.

The rich get richer and the poor get poorer in Southern California. Analysis of the California Budget Project shows that the average inflation-adjusted income of the top 1% of California's taxpayers increased by over 50% over the past two decades (1987-2009). In contrast, the average income of Californians in each of the bottom four fifths of the distribution lost purchasing power and people in the bottom fifth, mostly nonwhite, have seen a wrenching decline of over 19%.

For the African American communities that always live in recession conditions, there is now a depression. For Latinos, who have had high levels of employment in menial jobs that do not pay much the situation is desperate. Things are especially bad for men of color, a great many of whom are in an unforgiving and intensely competitive job market without even a high school education.

It is time for emergency help. We need to do what was done during the Great Depression and even during the 1970s under the public service employment programs in the administrations of Presidents Nixon, Ford, and Carter -- to give those excluded from opportunity some connections, useful experience, and hope. We need expanded Job Corps, Conservation Corps, and a Neighborhood Youth Corps. President Obama's jobs bill putting teachers and public safety workers back on the job is a good idea and urgently needed, but much more will be required to reach the Latino, African American and poor white workers whose lives have been shattered by the recession. Economic research on the Carter administration's version of public service employment shows that it reached a diverse and disadvantaged population while providing needed public services, and brought into the labor force many who would have been otherwise excluded. This program, responding to much smaller recessions, reached a peak of 725,000 jobs in 1978.

For Southern California, this is not a sad story about the margins of our society but rather it is a tragic story about the center of our future society, in our vast and immensely productive region. We need urgent action at all levels of government and within our major institutions to refocus on education and substantially raise the numbers of those who graduate from high school and college -- to make this a fundamental goal -- and to put the workers whose time and talents are now wasted and atrophying back to work.

For more information on the LASANTI Project go to: www.civilrightsproject.ucla.edu

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02:00 PM on 12/23/2011
Dear writer of this story I hope you never get Injured or ki/lled by some illegal without a drivers licence. You see here in Los angeles If you are an illegal and you drive a car, It wont be taken from you. You will get to call someone to pick it up. "how nice" I am so glad to be an American. I am so happy the illegals don't have to follow laws but Americans do. And what is amazing is you blaming the white man.
LATEACHER1X
tellin' it like it is
01:29 PM on 12/23/2011
California has the 8th largest economy in the world! Yet, all the commenters here direct their anger toward illegal immigrants and anti-business initiatives. No wonder we are in trouble.
11:31 AM on 12/24/2011
Diffidently, I point out,you're commenting on a sample size of a dozen.There are lots of reasons the state is worse each year. Near the top is the failed public ed system
LATEACHER1X
tellin' it like it is
01:52 PM on 12/24/2011
True. But, again, teachers are blamed instead of those at the top who deliberately broke it so they can profit.
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mhh310351
Roosevelt Democrat
12:34 PM on 12/23/2011
The sad truth is Southern California we have politicians that have lost sight of the goal.

25 years ago we had a thriving aerospace industry, it is a shadow of it's former self. We have the largest congressional delegation but they rarely work together to bring industry to this state. They have lost sight unlike other areas of the country that these industries help the whole state not just the districts they are located in.

Sacramento has strives to be as anti-business. Why is that?

I have watched my industrial electricity rates go from $0.08/kwh in 2007 to $0.14/kwh in 2010.
I have watched my water/sewer rates go from $4.90/HCF in 2007 to $7.90/HCF in 2010.

Can this truly be justified by inflation?

Do you think the prices in 2007 compared to other states was out of line - they were, even then they were to high.

Then you compare the regulations in this state and how government agencies have such an adversarial relationship with businesses to other states. Is it really a surprise states like Colorado, Arizona, Nevada, etc.. rent out billboards telling California businesses should move to their states? And our politicians act surprised when businesses actually leave!

We are a progressive state - So progressive we will soon be known as an agricultural state not a state that makes things!
LATEACHER1X
tellin' it like it is
01:30 PM on 12/23/2011
Arizona and Nevada? LOL.
02:47 PM on 12/22/2011
It seems like the "economic ladder" has broken under the combined weight of all the poor immigrants, both legal and illegal, that have migrated to Southern California over the past few decades.

No one who is grounded in reality can be surprised by the fact that there is high unemployment and underemployment, growing poverty, and growing income inequality. Importing millions of poor people is a recipe for disaster and that disaster is now unfolding in Southern California and other places around the country.

There simply are just not enough jobs for all the people being packed into So California. New immigrants compete with existing immigrants and existing poor for the same jobs. Wages are pushed down for everyone. Exactly what can be expected with a huge influx of cheap labor.

Don't blame the educational system or the white minority for these problems. Mass immigration and the acceptance of illegal immigration has been promoted by ethnocentric, special interest groups like LaRaza, MECHA, and the cheap labor business interests they are aligned with.

Government funded job programs are not going to solve these problems. What we need is a dramatic reduction in legal immigration and enforcement of our immigration laws, so that many of the illegal immigrants will return home (mandatory E-verify will dry up jobs for illegal workers).

Not willing to enforce immigration laws or reduce illegal immigration? Then welcome to a new emerging third world country in Southern California.
01:07 PM on 12/22/2011
In 1969, Chávez marched to the border of Mexico to protest illegal immigration because of the pressure on wages and employment of his workers. He understood that having a large supply of inexpensive labor would depress wages and increase unemployment. This is great for corporations and perhaps for certain politicians but having more immigration than you can assimilate eventually will break the social fabric. A nation of people that cannot talk to each other will like a tower of Babel struggle to advance.
10:41 PM on 12/21/2011
Unless you address the problem of massive illegal immigration, you will have no improvement. This is what happens when you get an influx of over one million uneducated, low skilled workers who are sucking on the system. The cost run up dramatically, the education level drops, and we get more social costs.

What you propose will simply add to more illegals coming in with that kind of a draw, unless some effective means are taken to stop it and reverse it. The illegals have driven most honest contractors out of business and most of the remaining ones will NOT hire a black American at all. They will take an illegal before them.

So as they keep on coming, there will be no solution and it will simply look more like Mexico with the very wealthy in gated compounds and private guards, and the rest of American citizens outside to deal with Mexicans who will stomp on them.
06:06 PM on 12/21/2011
We have imported Mexico into Southern California and it now looks like it.

t is economically impossible to turn washing each other's cars into a prosperous future.

What first world employer would locate here, where the the labor force is so poorly educated? What does a Los Angeles, now mostly Latin American, bring to the table over just having the plant over the border in Mexico, where labor and many other costs are cheaper?

We should no longer be comparing Los Angeles to the rest of the US. We should be seeing how it stacks up against Northern Mexico.
Norm
Read think read analyze read comment
10:46 PM on 12/21/2011
I read the LA Times enough to know that Southern CA is in desperate straits. Besides government insolvency at the state level, I'm not sure of what has happened there. I was once an employment counselor for the Comprehensive Employment and Training Act and we employed a lot of people as part of the federal jobs program, but we almost never had anyone with less than a high school education, even then. We got great numbers of people employed in a way that is politically unacceptable now, but the jobs were all city/town jobs; some education is necessary.
02:06 PM on 12/21/2011
"We need urgent action at all levels of government and within our major institutions to refocus on education and substantially raise the numbers of those who graduate from high school and college -- to make this a fundamental goal..."

The PROBLEM with education in this country is a LACK of PARENTING. Stop blaming the government and major institutions for the low graduation rates and poor economic outlook for African-Americans, Latinos, and the poor. Stop expecting others to do for you, what you could, and should, do for yourself.
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Lloyd Wilson
06:16 PM on 12/21/2011
How many losers did not take advantage of the 12 years of free education given them by the taxpayer? Their plight is their fault, and the fault of their parents, not the fault of society's winners. The "wrenching" decline of the losers is a reflection of their inexcusable lack of productivity. Decisions have consequences.
LATEACHER1X
tellin' it like it is
11:00 PM on 12/22/2011
The 'education' of blacks and latinos throughout the 80s and 90s in LAUSD was appalling. When I first started teaching in 1986 in south-central Los Angeles, I was outraged and persistently reported the absence of quality, corruption and major theft by administrators and district officials. I contacted persons within the district, state, councilwomen, and even the district attorney's office. I began to realize that the "system" was a deliberate attempt to ensure another generation of slave labor and prison inmates. ACLU, if you're interested, I saved the documentation. That is the only reason I still have my job.