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Anticipating Changes in Regional Demand for Nursing Homes

By Laurel Beck, Landon Gibson

California’s nursing homes provide a major source of personal and medical care for the state’s most vulnerable residents—the elderly and the disabled. By 2030 the state’s 65-and-over population will grow by 87 percent. The number of people requiring skilled nursing care could increase by 32,000, far outstripping current capacities. We find that there will be significant disparities in regional growth rates across racial/ethnic groups and in regions’ abilities to absorb higher numbers of patients. Specifically:

  • The Bay Area and the Inland Empire have the largest discrepancies between existing nursing home capacity and projected demand in 2030; Los Angeles and Northern California (excluding the Bay Area) have the smallest.
  • Regional growth rates in the 65-and-over population vary widely within racial/ethnic groups. For example, rates among Latinos range from 159 percent on the state’s Southern Border (Imperial and San Diego Counties) to 193 percent in the Inland Empire; among Asians they range from 93 percent in the Central Coast to 212 percent in Northern California (excluding the Bay Area).

In order to meet the growing and changing demands for senior care at the statewide and regional levels, policymakers will need to address ways to increase nursing home capacity. These solutions must also include recruiting and training health workers who can provide effective, culturally competent care, whether in skilled nursing facilities or home- and community-based settings.

blog post

Testimony: Closing California’s Degree Gap

By Hans Johnson

The most promising approach to closing the workforce skills gap is to concentrate on improving the educational attainment of California residents.

Report

Will California Run Out of College Graduates?

By Hans Johnson, Sarah Bohn, Marisol Cuellar Mejia

California’s higher education system is a critical driver of the state’s economic progress. As the state’s economy continues to change, will its workforce be ready for the jobs of tomorrow?

This report updates and extends projections of California’s workforce skills through 2030, focusing on the supply and demand for workers with a bachelor’s degree. We find that the state will fall about 1.1 million college graduates short of economic demand if current trends persist—a problem we call the workforce skills gap. Even the arrival of highly educated workers from elsewhere is unlikely to be large enough to fill this gap.

Today’s college graduates have better economic outcomes than those who do not hold a bachelor’s degree. Over time, college graduates have seen lower rates of unemployment and higher wages than other workers—even through the Great Recession—suggesting that college degrees have become increasingly valuable in California’s labor market.

The future workforce skills gap looms large. But California and its higher education institutions can take several practical steps to close it. The core of a new plan for higher education should include increasing access to the state’s four-year institutions, improving college completion rates, expanding transfer pathways from community colleges, and being smart about aid programs.

Report

Higher Education in California: Performance Budgeting

By Hans Johnson, Patrick Murphy, Margaret Weston, Kevin Cook

As California begins to reinvest in public higher education after several years of budget cuts, it could opt to tie funding more closely with outcomes—for example, the number of students educated or degrees awarded. This approach, known as performance-based funding, has the potential to incentivize investment by the state’s higher education systems in areas that further state priorities. Drawing on California’s minimal experience with performance-based funding and the approaches other states have pursued, this report raises four important questions for the state to consider if it wants to link funding for higher education with outcomes without compromising on either quality or equity.

blog post

Now Hiring: Skilled Health Workers

By David Lesher

Changing medical technology, an aging population and new health care policies have raised important questions about the workforce that will be needed in the future. This was the topic of a PPIC report and panel discussion in Sacramento.

Report

California’s Need for Skilled Workers

By Sarah Bohn

If recent trends continue, California is likely to face a shortage of workers with some college education but less than a bachelor’s degree by 2025. State and federal policymakers have increased their focus on boosting educational opportunities for this segment of the workforce. This report examines labor market outcomes among workers with some college training to shed light on the types of jobs that hold the most promise for future workers and the state economy.

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