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Palmdale

The greater Palmdale area has been a center of high-tech manufacturing and service firms for the last fifteen to twenty years. The city itself includes about 800,000 people, with 1,500,000 people in the county. Over one-quarter of the workers in the county are employed by high-tech firms.

Although the county had a strong economy in the 1980s, in the 1990s there has been a decline in well-paid jobs for less educated workers. By 1990, professional, management and technical jobs supported slightly over forty percent of the population. In contrast, in 1960, less than one-quarter of the population was supported by these higher-level jobs. Manufacturing positions have been declining, as evidenced by the eighteen percent decline in operator and assembly jobs in the 1980s, causing less-educated and immigrant workers to move into service jobs or to leave the county. Blue-collar jobs are moving to other locations in the United States and to offshore locations. Past productivity gains in area firms have especially decreased the need for less-educated employees. Low-paying service positions along with white-collar positions are expected to increase in the future; whereas, college-educated workers fared the best in the 1980s.

As a result of the recession, the shrinking defense industry, and competition from U.S. and overseas firms, many electronics firms have moved some (or all) facilities to other states or are considering such a move. A recent report released by a group of high-tech companies identifies several barriers that inhibit growth in the area, including high housing costs, a congested transportation system, burdensome state regulations, and an inadequate educational system. Job growth has slowed down from a former average of thirteen percent annually to less than five percent. In the last year, one fifth of workers between eighteen and thirty attempted to find work in other areas. As our interviews show, employers do not feel that sufficient numbers of nonprofessional and blue-collar workers can be recruited into the county because of the high cost of housing. Even white-collar managers, who make up one-fourth of the unemployed, have been hit by hard times. As a result, the meaning of career opportunities has changed in the last decade. Job security and advancement no longer are promised, and employers expect employees to move to other companies or to other types of positions within companies. In order to retain and increase profits during the recession, employers have cut back on whom they will hire. Furthermore, temporary hires have become more prominent.

In 1990, the county in which Palmdale is located had the following employment distribution: Manufacturing accounted for about thirty-four percent of employment; services for twenty-six percent; retail trade for thirteen percent; government for ten percent; wholesale trade for six percent; mining and construction for four percent; financial, insurance, and real estate for three percent; and transportation and public utilities for three percent.

Unemployment rates in the region were high last year compared to previous levels. The unemployment rate in the county was at 5.6% in May 1991 but decreased to 5.0% in November and December. Higher rates emerged during the winter; and the spring months of March, April, and May of 1992 registered unemployment rates of about 6.5%, which is over two percentage points lower than the state level.

Almost one-quarter of county residents are born in countries other than the United States and about seven percent of county residents are limited in their English speaking skills. In the City of Palmdale, non-Latino whites make up fifty-five percent of the population, Latinos make up twenty-five percent, Asians and others account for sixteen percent, and African Americans account for four percent. As a result, almost all Palmdale-area employers mentioned the need for ESL training.

The vocational education providers in the greater Palmdale area include a community college within the city itself and a sister college located just south of the city, two well-known community colleges located in middle-class communities north of the city, two other community colleges located nearby, and an area vocational school operated by the school district. We interviewed individuals in one college from each pair of sister schools, as well as a community-based organization well-known for its vocational programs.


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