Economic Data Summary
Economic (In)justice In Orange County
Since 2020, Orange County (OC) has experienced significant economic shifts and trends, including a strong recovery from the COVID-19 pandemic, growth in specific industry sectors, and deepening economic disparities among different populations. In support of the important conversations and opportunities around Economic Justice in OC, these trends are synthesized from across 16 primary and secondary data sources, including the Orange County Equity Profiles, the Healthy Place Index, Orange County Business Council’s Community Indicators, and the Equity in OC community profiles.
We want to acknowledge the important work that the authors of these reports have done to sift through numerous national and local datasets, as well as working hand-in-hand with Orange County community members to uplift their experiences.
In pouring over these reports, we provide a condensed summary of the data landscape of economic justice in Orange County. The result? A powerful illustration of Orange County with widening income and wealth disparities by race, immigration status, and education.
Report Content
Economic Growth
Orange County’s economy has demonstrated resilience, recovering from pandemic-era job losses and reaching new employment highs. The county’s gross regional product (GRP) per capita is significantly higher than the state average. From 1979 to 2016, job growth and GRP in Orange County have outpaced the national average (1). In 2022, Orange County represents 9.2% of California’s total taxable sales (2).
Racial Equity
If racial income gaps were completely filled, Orange County’s 2022 economy would have been $97.4 billion stronger. Average incomes for residents of color would need to increase by $32,000, a 67% gain (3). Specifically, increasing hourly wages for residents of color would account for 81% of the gap. The other 19% would be to increase employment rates (see Figure 1).
Figure 1. Increasing hourly wages for residents of color to achieve racial income equity.
Industry Clusters
Certain industry clusters are major drivers of the county’s economy. These include advanced manufacturing, biotechnology, information technology, healthcare and social assistance, and tourism and hospitality (see Figure 2) (3) (4). These clusters contribute to economic growth and innovation within the county.
Latino/a/x workers are heavily represented in jobs that are on the decline. In 2022, Latino/a/x workers made up 55% of workers in manufacturing roles, 89% in farming, fishing, and forestry jobs, 54% in food service positions, 31% in sales roles, and 28% in office and administrative support jobs. By 2029, these job sectors are expected to shrink significantly, with manufacturing projected to decrease by 14%, farming, fishing, and forestry by 9%, sales roles by 7%, food service jobs by 7%, and office jobs by 5% (3).
Figure 2. Proportion of top industries where OC workers work. Data source: Data USA 2022.
Workforce
A well-educated and qualified workforce is a competitive advantage for Orange County (see Figure 3). The region’s strong academic institutions contribute to workforce development.
Figure 3. Proportion of workers in occupational roles. Data source: Data USA 2022.
The county is focused on workforce development and training programs to strengthen the labor force and fill skills gaps. In Orange County, the risk of job automation and readiness for future jobs varies significantly based on education level. Jobs held by those with only a high school diploma are at the highest risk of automation, with a 79% likelihood, whereas jobs requiring an advanced degree face only a 4% risk. Among racial and ethnic groups, Asian American workers with advanced degrees are best positioned for future-ready jobs, with an 86% probability, while Latino workers with the same level face a lower rate of 39%. One-third of the construction workforce are undocumented immigrant workers, putting them at risk for federal immigration enforcement and thus, a source of economic precarity in OC’s workforce landscape (3). Overall, jobs necessitating higher education, like a Bachelor’s or advanced degree, are more secure against automation and are more future-ready.
Unemployment
Orange County generally has lower unemployment rates than the national average. However, there are still pockets of high unemployment within the county. The County had an unemployment rate of 4.0 percent in June 2024, lower than state (5.3 percent) and national (4.3 percent) averages (5).
Since 1999, the number of jobs in the county has grown by 88,900, reaching a total of 1,512,700 jobs, which is a 6.2% increase. At the same time, the number of unemployed people went up from 39,400 to 63,600. The county’s overall workforce also grew by 7.7%, increasing from 1,463,200 to 1,576,300 people. Although more people are unemployed now, with the unemployment rate rising from 2.7% in 1999 to 4.0% in June 2024, the growth in the workforce shows that Orange County is good at attracting and keeping workers (5).
Income and Wages
There are wide income disparities within the county. While the average per capita income in Orange County was $51,343 in 2022, Red Zones (defined below) had a lower average per capita income (1) (2). Some industries, such as finance and insurance, utilities, and management of companies, have the highest average annual wages. In 2022, the industries with the largest percentage growth in average annual wages were Administrative and Remediation, Accommodation and Food Services, and Manufacturing. However, wages for middle- and lower-wage workers have fallen while wages grew for higher-wage workers from 1979 to 2022. (see Figure 4) (2) (3). Lower-wage workers tend to be Latino/a/x, Black, Native American, Pacific Islander, immigrants, and with educational attainment less than a bachelor’s degree (see Figure 5).
Figure 4. Graph from 2025 OC Equity Profile by Orange County Grantmakers & USC Dornsife.
Education is often touted as the great equalizer for racial inequities. Yet, among all those with a bachelor’s degree or higher, people of color report lower hourly wages compared to White people. U.S.-born Latino college graduates report an average hourly wage of $36 versus White college graduates who make $50 average hourly wage (see Figure 5).
Figure 5. Graph from 2025 OC Equity Profile by Orange County Grantmakers & USC Dornsife.
The median household income of Black households in 2022 was about $88,000 compared to non-Hispanic White households whose median income was about $118,000 (see Figure 6) (3). A community-led survey showed that Black residents viewed affordable housing, housing insecurity, and a healthy economy as top issues impacting their health (6) (7).
Figure 6.
There are also wide disparities in income within the Asian community (see Figure 7). Vietnamese households have the lowest income among Asian American subgroups, with 61.0% earning $50,000 or less. In contrast, South Asians are the highest earners, with 54.4% of households making over $135,000. Other groups such as Filipinos (45.5%) and Chinese (41.7%) also have significant proportions in the highest income bracket, while Japanese, Korean, and Other Asian/2+ Asian Types have diverse income distributions with a substantial share earning above $135,000.
Figure 7. Authors’ analysis of 2023 California Health Interview Survey data.
Income Inequality and Poverty
In 2016, Orange County had a high level of income inequality (0.47 Gini coefficient), ranking 58th among the 150 largest regions in the United States. Compared to other regions in California, Orange County has less income inequality than Los Angeles (ranked 6th with 0.50 Gini coefficient), but higher inequality than the San Diego metro area (ranked 69th with 0.46 Gini coefficient) (2). Income inequality follows lines of race, gender, and immigration status. For instance, immigrant (or foreign-born) residents tended to report lower median household income compared to their U.S.-born counterparts. This was true for Asian, Latino, White, and multiracial residents (see Figure 8).
Figure 8.
While Orange County has a lower poverty rate compared to the national average, poverty has been rising since 1980. However, in recent years, the poverty rate has begun to stabilize. From 2016 to 2023, about 12% of Orange County residents were living below the federal poverty level, defined as $30,000 for a family of four. There are areas of concentrated poverty in certain neighborhoods (see Red Zones below).
When the cost of living and a range of family needs and resources, including social safety net benefits, are factored in, poverty among Orange County’s children increases to 12.4%, surpassing California at 9.0%, with a threshold income needed to maintain a basic standard of living for a family of four (two adults, two children) that rents at $40,349 in 2021. In 2021-2022, 3.2% (22,710) of Orange County’s children received CalWORKs assistance, a 48.3% decrease from 6.1% (43,916) of children in 2012-13 (8). In one area of improvement, the County has seen a downward trend from 2012 to 2021 in juvenile arrests and gang-related juvenile persecutions (8). To the authors’ knowledge, there are no data that directly connects juvenile arrests and persecutions with long-term economic outcomes. However, a downward trend in interactions between youth and the criminal legal system may be an area of improvement for income inequality in Orange County.
On that note, there are no economic data on income inequality between incarcerated and formerly incarcerated individuals compared to those who have never been incarcerated. A community report by the Harbor Institute discusses the share of immigrants in Orange County who have been impacted by Immigration and Customs Enforcement—even with this data, it is difficult to empirically ascertain economic outcomes (9).
In the Orange County Equity Profile 2025 report, data projected that if racial equity in income were achieved, Orange County would see a 38% increase in its GDP (see Figure 9). It ranked 48th among the country’s 389 largest counties in terms of GDP improvements from racial equity.
Figure 9.
Red Zones
The county has identified “Red Zones” that qualify for Economic Development Administration (EDA) funding (see Figure 10) (1). Red Zones are census tracts with an unemployment rate 2.0 percentage points above the national average and an average per capita income less than 80 percent of the national average. These zones are also considered “Disinvested Communities” and are a focus for economic development and infrastructure investments.
In 2024, the CEDS report noted 48 Red Zones in Orange County, down from 71 between 2013 and 2018. These areas are home to 289,752 people, or 9% of the County’s population, featuring lower average incomes of $26,951 per person and a higher unemployment rate of 9.4% in 2022. The population in Red Zones is notably more diverse, with 54.5% Hispanic or Latino and 25.2% Asian residents, compared to 34.1% and 21.9% countywide. By city, Garden Grove has seen a significant increase in Red Zones from 6 to 9, with 29% of its residents living in these areas, while Anaheim and Fullerton have reduced their number, with Anaheim dropping from 12 to 8 Red Zones. Santa Ana experienced a modest increase to 11 Red Zones, accounting for 21% of its residents.
Figure 10.
Housing Costs
Housing is a major issue for Orange County residents, particularly for those in low-wage occupations. A significant portion of households are rent-burdened, meaning that they spend over 30% of their income on housing (see Figure 11). Rent burden is a county-wide issue and is not specific to one specific area. However, in areas such as Westminster, Garden Grove, Anaheim, Brea, and Fountain Valley, almost two-thirds of residents are rent-burdened. In 2016, Orange County ranked as the 12th most rent-burdened place among the 150 largest regions in the U.S. (2). New data from 2022 reveals that Orange County has dropped to being the 17th most rent-burdened metropolitan area, whereas Los Angeles (10th) and San Diego (12th) counties continue to rank higher (3).
Figure 11. Proportion of residents who are rent-burdened by Census Tract, 2022. Screenshot of graph from OC Equity Profile 2025, created by USC Dornsife Equity Research Institute.
There are also racial and ethnic disparities in who is rent-burdened. In 2016, Latino/a/x households were the most rent-burdened and homeowner housing-cost-burdened compared to other groups (see Figure 12).
Figure 12. Orange County Latino/a/x residents are most rent-burdened. Graph from 2019 OC Equity Profile by USC Dornsife.
Impact of the Aging Population
Orange County’s aging population is having major impacts, including increased demand for healthcare, social assistance, and public transit.
Orange County’s population is gradually getting older, with the median age rising from 36.1 in 2010 to 39.5 in 2022 (1). The portion of residents aged 65 and older has grown from 9.8% in 2000 to 16.4% in 2024, and it’s expected to reach 29% by 2060. This age group is the only one predicted to grow as a share of the total population, increasing by 66.4% between 2024 and 2049 (5).
This aging trend has notable economic impacts. The need for healthcare services will rise, with healthcare and social assistance jobs already growing from 9% of county employment in 2000 to 13% in 2022 (5). Home health and personal care aides are expected to see a significant 76.5% increase. Moreover, as older residents hold onto their homes longer, the housing market may see
fewer properties available. The aging population could also lead to fewer candidates for the workforce, potentially slowing economic growth. Additionally, declining school and college enrollment might create a smaller talent pool for businesses, threatening the county’s labor market and economy.
To address these challenges, there will be a higher demand for services like handyman work and public transit. However, economic opportunities might arise through international trade and cultural exchange, contributing to growth. A potential concern is the digital divide for older adults, who may have limited access to and familiarity with digital technology, risking isolation from digital services like telehealth and online shopping.
Medi-Cal Coverage
In 2023, a little more than half of Orange County residents had employment-based health insurance (see Figure 13). According to 2023 California Health Interview Survey data, about one in five are on Medicaid. However, data from Cal Optima Health, which is the Medicaid health insurance plan for low-income OC residents, reports that nearly one-third of OC residents have CalOptima Health.
Figure 13.
Conclusion
Orange County’s economic landscape is characterized by robust growth and considerable complexity. The county has shown impressive resilience, bouncing back from pandemic-related job losses with strong gains in employment and a per capita gross regional product that outpaces the state average. Yet, this prosperity is not uniformly experienced across its diverse population.
- Income disparities persist, notably affecting Latino/a/x workers who are concentrated in declining job sectors and face significant economic challenges.
- The county’s aging population further complicates the economic picture, increasing the demand for healthcare and social services while simultaneously reducing the pool of working-age residents.
- Racial and ethnic disparities in educational attainment create significant barriers to economic mobility, with Latino workers facing a 39% probability of future-ready jobs compared to 86% for Asian American workers with advanced degrees.
- Housing insecurity disproportionately impacts low-income communities, with 63% of residents in areas like Westminster, Garden Grove, and Anaheim being rent-burdened and designated “Red Zones”, particularly affecting Latino/a/x and Southeast Asian households.
- Immigration status and workforce vulnerability intersect, with one-third of the construction workforce being undocumented immigrants, creating economic precarity and increased risk of federal immigration enforcement.
Orange County offers a patchwork of support programs targeting lower-income residents, including CalWORKs, CalOptima health coverage, CalFresh food assistance, and workforce development initiatives. While these programs provide critical support, they primarily address immediate needs rather than systemic economic inequities. CalOptima serves nearly 926,000 residents through Medi-Cal, and programs like WIC and SSI offer targeted assistance to specific populations. However, these fragmented efforts fall short of comprehensively addressing the $97.4 billion racial income gap identified in the county’s economic analysis. The time has come for Orange County to move beyond incremental support and develop wide-sweeping economic interventions: comprehensive universal basic income programs, aggressive housing subsidies, free workforce training and education, and targeted economic reparations that directly address historical and systemic economic disparities faced by communities of color, immigrants, and other marginalized groups.
Works Cited
- Orange County Workforce and Economic Development Division. Comprehensive Economic Development Strategy (2024-2029). 2024.
- Policy and USC Dornsife Program for Environmental and Regional Equity. An Equity Profile of Orange County. 2019.
- Orange County Grantmakers and USC Equity Research Institute. Orange County Equity Profile 2025. 2025.
- DataUSA. Orange County, CA. [Online] 2023. [Cited: March 24, 2025.] https://datausa.io/profile/geo/orange-county-ca/.
- Orange County Business Council. 2024-25 Orange County Community Indicators Report. 2025.
- Health Equity for African Americans League. Black Health Equity Survey Report 2023. 2023.
- Orange County Health Care Agency. Population Overview: Black Community. s.l. : Equity in OC, 2020.
- Orange County Board of Supervisors. The 29th Annual Report on the Conditions of Children in Orange County. 2024.
- Do, Mai Nguyen, et al. ORGANIZING FOR CHANGE: Opportunities for Immigrant and Economic Justice in Orange County. s.l. : Harbor Institute for Immigrant & Economic Justice, 2024.