Promoting Labor Force Opportunities for California’s Latina Population

Latina women make up a large share of California's population but participate in the labor force at levels below the state average. According to 2022 data, there were more than 840,000 working-age Latinas not participating in the labor force. As California's population continues to age, increasing workforce participation among Latina women and other groups could offset workforce declines; it could also boost individual economic mobility.

Overall, women are less likely to participate in the labor force than men (77% versus 90%). But participation for Latina women (74%) is lower than participation among Black, Asian, and white women, whose participation is closer to 80%. Family structure is one factor: labor force participation is lower among women who live with partners and children, and Latina women make up the lion's share (40%) of this group.

But Latina women with partners and children are less likely to participate in the labor force than partnered mothers of other race/ethnicities-the rate for all women is 70%, compared to 64% among Latina women. Why might this be? Educational attainment, immigration status, and English proficiency are important factors: Latinas living with partners and children are much more likely to have lower levels of educational attainment (67% have a high school diploma or less), to be noncitizens (45%), and to have limited English proficiency (34%) compared to their white counterparts. These factors affect their opportunities in the labor market, which may impact family decisions about who is working and how much.

To better understand these trends and explore policy levers that could benefit both Latinas and California's broader economy, we convened a group of policy experts, practitioners, and advocates for a conversation about labor market barriers, challenges, and opportunities specific to working-age Latinas. Several notable insights emerged.

• Policies that strengthen the social safety net could boost economic opportunity among Latinas. The dual burdens of work and caregiving responsibilities disproportionately impact Latinas. The high cost and limited availability of childcare services exacerbate this challenge. Increasing childcare support, paid family leave, and child tax credits could alleviate some of these burdens.
• Latinas are disproportionately working in low-paying jobs. Latinas are overrepresented in low-wage sectors-such as hospitality, healthcare support, and service industries-which often have limited advancement opportunities. Immigration status as well as lower educational attainment and English proficiency limit access to higher-earning jobs.
• Efforts to raise earning potential could boost participation. Despite gains in educational attainment, Latinas have seen limited growth in earnings, with large gaps relative to men and non-Hispanic women. Educational attainment does not fully explain these gaps; addressing occupational barriers, wage discrimination, and work-life supports are also important policy levers.
• Better information about educational and vocational paths can help open more opportunities. Many Latinas work out of economic necessity, which may impede career growth. Pathways that move Latinas into careers that promote upward economic mobility are essential. Higher education institutions can improve efforts to recruit and support Latina students, but efforts to facilitate better career opportunities must continue after graduation.
• Efforts to lower systemic challenges could boost Latina entrepreneurship. Entrepreneurship offers an important path to economic mobility, but Latinas face multiple challenges, including limited access to credit, language and cultural barriers, limited networking, and discrimination. Efforts to improve support for new businesses among California's Latinas-and in general-could help foster greater opportunities for entrepreneurial growth.

Low rates of workforce participation among California's Latina population are linked to complex and intersecting factors affecting economic opportunities that many Californians face. Policies that remove childcare, educational, skill, and language barriers could narrow participation and income gaps and improve economic outcomes. Policies that provide easier paths to entrepreneurship and formal business incorporation could also lead to higher labor force participation. As the state's workforce ages, targeted policies to address factors limiting workforce participation among Latinas and other low-participation demographic groups in California could help boost opportunity and bolster the state's economy.