Santa Cruz County Workforce Development Board has released its 2026 State of the Workforce report, providing an overview of local employment trends, wage data and economic challenges affecting the region.
The report examines three years of economic patterns and comes amid changes driven by advances in artificial intelligence and automation, as well as state and federal policy decisions affecting labor markets, industry growth, healthcare access and economic opportunity.
Between 2022 and 2025, Santa Cruz County saw a 0.9% increase in job growth and a 1.3 percentage-point improvement in homeownership affordability. The report also found continued growth in lower-wage tourism, hospitality and recreation jobs, along with expanded career opportunities in healthcare, education, information technology and aerospace/transportation.
However, some sectors experienced declines during the same period. Retail employment decreased by 5.5%, while finance and business services declined by 11.2% and 10.5%, respectively. The report noted these trends may reflect a combination of factors, including a 3.3% population decline over the past five years, economic uncertainty and changes in how work is performed.
The report found that 57.4% of jobs in Santa Cruz County fall into the lowest-paying occupational category, compared with the statewide average of 54%. The median wage for the county workforce is $68,399, while the report states an individual would need to earn $89,398 annually to meet the local living wage.
The Workforce Development Board identified five areas of focus moving forward, including expanding apprenticeships and internships, developing artificial intelligence training programs, improving access to workforce development funding, strengthening industry-specific training partnerships and addressing challenges facing businesses.
The full report is available at workforcescc.com.
