As AI and federal cuts threaten jobs, California must invest in workers

OPINION – California’s economic future depends on a skilled workforce capable of adapting to rapid change. This came into sharp focus recently when the CEO of Anthropic warned that artificial intelligence could eliminate half of all entry-level white collar jobs within five years, potentially pushing unemployment to 20%. With workers facing such unprecedented disruption — on top of the Trump Administration’s proposed $1.6 billion in cuts to Department of Labor funding — it’s imperative that state lawmakers prioritize workforce development funding during final budget negotiations.

Investing in proven, effective workforce programs in essential industries like healthcare, utilities, and construction would create win-win solutions by pairing employer demand with skilled jobseekers. Yet, despite Gov. Newsom’s statewide strategy on career education, his May budget revision does not include any meaningful investments in workforce training programs. Without new investments, the legislature risks exacerbating California’s affordability crisis and upending pathways to financial stability for jobseekers in the Golden State.

At JVS Bay Area, we receive state funding from the state’s High-Road Training Partnership program (HRTP), which allows us to work closely with employer partners to train jobseekers for in-demand careers — such as medical assisting and water/wastewater management — and support participants with unexpected car repair or childcare costs so this doesn’t get in the way of finishing their training. The economic case for workforce investment like HRTP is compelling. Every dollar granted through HRTP has generated $2 in economic benefits through increased wages for our graduates — concrete evidence that these types of initiatives more than pay for themselves.

Behind these impressive statistics are real people whose lives have been transformed. For example, Arthur Burns was working as a cashier at a gas station before his cousin introduced him to IEWorks, an HRTP-funded pre-apprenticeship program in the water/wastewater utility sector. After graduation, he secured an internship at the West Valley Water District, which then led to a full-time role. His experience also inspired his younger brother and cousin to pursue careers in the skilled trades. Workforce funding like this doesn’t just change individual lives — it sends ripples throughout the whole community.

These programs are also essential for employers looking to fill skilled positions. Throughout the state, our healthcare sector faces severe staffing shortages leaving about 38% of Californian’s living in federally designated Primary Care Health Professional Shortage Areas. Many industries, like water utilities, face a “silver tsunami” of impending worker retirements, leaving positions that must be filled or risk challenges to maintaining critical infrastructure. And sectors that are crucial to our future economy — from clean energy to housing construction — require skilled professionals to do essential work that improves quality of life for all Californians.

We need new investments to ensure the stability of existing workforce programs, especially as workers face unprecedented headwinds. Tariffs are poised to disrupt supply chains and employment across multiple industries. Artificial intelligence is rapidly transforming job requirements across sectors. Without stable, well-funded programs, workers will be left to navigate these complex transitions alone

Important questions remain: How will California capitalize on its existing investments in workforce infrastructure? How will underrepresented Californians continue to access quality jobs in established sectors if the state stops investing in successful programs? How will lawmakers ensure jobseekers have resources to succeed at a time when the federal government is slashing its own programs and the broader social safety net?

Despite our current budget deficit, the state must invest in sustainable, long-term funding for workforce training programs that incorporate the most effective elements of HRTP — namely, flexible support for participants and employer partnerships. These proven strategies are essential to meeting the urgent demands of California’s evolving labor market.

As budget discussions for future years begin to take shape, the governor and lawmakers should recognize the clear return on investment these programs deliver: a stronger economy, transformed lives, and a more resilient workforce.

Lisa Countryman-Quiroz is CEO of JVS Bay Area, a nonprofit working to close opportunity gaps in employment across California.