www.montereycountynow.com september 19-25, 2024 MONTEREY COUNTY WEEKLY 15 Nearly half of Monterey County’s private-sector jobs are in the region’s two biggest industries, agriculture and hospitality. That these two fields dominate our economic landscape is not new information. What is new is data at a granular level, region by region and city by city, in a report produced by Beacon Economics, set to be released on Friday, Sept. 20. The report, paid for by the County of Monterey and the Monterey County Business Council using pandemic-era American Rescue Plan funds, is the first of its kind, setting forth benchmark data by jurisdiction. Generally, it shows resilience since the pandemic—wages are up and jobs are up. From the third quarter of 2022 to the third quarter of 2023, the average wage in the private sector in Monterey County rose by 4.4 percent, better than California’s average 0.4-percent increase. Small businesses increased their workforces, while large businesses contracted. While each city’s data varies, overall there is a rebound since pre-pandemic times: Monterey has 481 fewer jobs than pre-pandemic, Seaside has 468 more jobs and Salinas has 156 less. Some communities’ employment rose slightly, and others shrank over the same time period. Economist Christopher Thornberg of Beacon Economics will present the report on Sept. 20, and he’ll share that overall trend on post-pandemic recovery. But he’s also looking ahead, and he has advice for policymakers. “One thing that immediately pops out is the employment base hasn’t changed at all,” Thornberg says. “That’s due to lack of labor force growth and lack of housing growth. One thing the county clearly needs is more economic diversification. “At one level what you see is good signs that important parts of the economy are moving forward. That being said, you’re not seeing the kind of diversification of the local economy that, for long-term sustainability and health, it really needs.” Over-reliance on agriculture and hospitality means too few opportunities. And especially as the presence of technology increases in agriculture—the biggest private-sector employer by far, accounting for over 1 in 3 jobs—Thornberg sees a need for local people to have more diverse local job prospects. His suggestion for a remedy sounds surprisingly simple. It doesn’t require courting a big tech giant or giving tax breaks to lure a mega-employer from somewhere else; it’s housing. “Our problem is a lack of multifamily housing,” Thornberg says. “There’s not enough and we’re not building enough.” His analysis is that more housing means more prospective workers, and that means more business owners can open up shop and find people to hire. “Politicians get elected by telling people what they want to hear. What people want to hear is we can have lots of growth with no new housing, no new traffic and no new people,” Thornberg says. He blames NIMBY thinking for stalling housing growth. (He also thinks rent control is the wrong direction—it’s a lack of supply that is the right problem to solve. “The increase in demand is driven by renter incomes, [which are] driven by tight labor markets,” he says. While I agree that supply is a problem we need to solve, I also think the desperate stories of tenants who need a place to live demand immediate protections.) We’ve all seen the ubiquitous “help wanted” signs at farm fields and in restaurants. Even these dominant industries can’t hire enough people—there simply aren’t enough workers. And there aren’t enough workers, Thornberg says, because there isn’t enough housing. “Monterey County has great bones,” Thornberg says, noting the unique, built-in qualities that make our agriculture and tourism industries the world leaders that they are. “It means the world can be your oyster, but it all depends on leading into change.” Change is hard, as they say, but it’s coming. And if we want opportunities for today’s young people to find jobs that can support them and keep them here—something that seemingly everyone says they want—it’s going to require a serious effort at solving our housing crisis. Monterey County Business Council hosts Chris Thornberg’s presentation and breakfast at 9:30am-noon Friday, Sept. 20. Monterey Conference Center. $25. 216-3000, mcbc.biz. Sara Rubin is the Weekly’s editor. Reach her at sara@montereycountynow.com. Living Wage A first-ever report shows Monterey County’s economy needs to diversify. By Sara Rubin Water Way…In Squid’s lair, the water is free. Not so on land, where a complicated mess of bills from utility company Cal Am plus fees from Monterey Peninsula Water Management District have long had members of the Monterey Peninsula Taxpayers’ Association up in arms. There was a user fee, collected from property owners by Cal Am and remitted to MPWMD from 1983 to 2009, which the California Public Utilities Commission then directed the district to stop collecting. But the district still needed revenue, so in 2012, enacted Ordinance 152—a different fee, this time with a sunset provision. Five years later, the CPUC revisited that earlier fee and reauthorized it. The taxpayers’ association saw double-dipping: Both the old fee (amounting to roughly $4.5 million per year), plus the new 152 fee (about $3.3 million per year), which was supposed to sunset. But MPWMD kept collecting, so in 2021, the taxpayers’ group sued. They won in Monterey County Superior Court; the water district tried to get a new trial and was denied, then appealed the ruling. On Sept. 11, the Sixth District Court of Appeal ruled, again siding with the taxpayers. MPWMD General Manager Dave Stoldt says a refund amount remains TBD. Even with water prices what they are, lawsuits cost a lot more; now MPWMD has to pay the taxpayers’ association’s legal costs, too. Forwarding Address…Once in a while, Squid considers running for office Squidself, but then Squid remembers: There are no elections in the jurisdiction of the sea, just a Darwinian food web. On land, bright lines are drawn around electoral areas, including the six districts that comprise Salinas City Council. Four of those six districts are up for election this Nov. 5, including a partial, two-year term in District 3, where former councilmember Steve McShane resigned midterm. The hotly contested four-person race includes current Hartnell College trustee Margaret D’Arrigo, who lists her Maple Park address on her candidacy papers. That same “crown jewel” of a Tudor-style home is now listed for sale for nearly $1.6 million. According to a real estate listing posted on Sept. 11 on Redfin and Zillow, “Evoking the glamour of the Rat Pack era, this 5-bedroom, 3.5-bath residence offers a blend of classic architecture and modern comfort.” At 3,494 square feet, there’s even space for a campaign headquarters (not noted in the listing). It’s a “timeless treasure,” but Squid checked and there is timing associated with holding office: Elected officials must reside in the district they represent. D’Arrigo tells Squid’s colleague she is moving just around the corner: “I’m not leaving District 3, no way—I love it here.” Squid’s land-lubbing counterparts will surely be checking back in. the local spin SQUID FRY THE MISSION OF MONTEREY COUNTY WEEKLY IS TO INSPIRE INDEPENDENT THINKING AND CONSCIOUS ACTION, ETC. “One thing the county needs is economic diversification.” Send Squid a tip: squid@montereycountynow.com
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