Item 08 Regional and Unified Local Workforce Plans for Program Years (PY) 2025-2028 as R_20250514214801296

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Orange RPU PY 2025-2028 Regional Plan 10 | Page Professional and business services represent the largest share of self-employed individuals in Orange County, aligning with national patterns highlighting the prominence of knowledge-based industries in independent contracting. Locally, self-employment is also significant in trade, transportation, and utilities, supported by the flexibility offered by gig platforms and app-based work. The Orange County Jobs First Regional Plan also highlights the prevalence of self-employed workers than traditional payroll employees in the natural resources sector, which relies heavily on independent contractors for seasonal and project-based work20. Additionally, post-pandemic trends have contributed to a rise in gig work and entrepreneurial ventures, with an increasing number of individuals registering new businesses or seeking flexible employment opportunities. This expansion is particularly evident in transportation, personal care services, and consulting, which have seen accelerated growth as part of the broader gig economy.21 Nationally, the gig economy is projected to generate $455 billion in 2023, reflecting a 53% increase since 202022 Orange County mirrors these trends with a growing share of its workforce engaging in independent or gig-based employment. Industry Specialization Understanding how Orange County’s economy stands out starts with the location quotient (LQ) concept. This metric compares the concentration of employment in a particular industry within the county to the national average. An LQ of 1.0 indicates that the industry’s local employment share equals the national average. An LQ above 1.0 means the industry is more concentrated in Orange County, suggesting it plays a larger role in the local economy than it does nationally. For example, an LQ of 1.5 indicates that employment in that industry is 50% higher locally than across the U.S. This analysis helps identify areas where Orange County has a competitive advantage or specialization, providing insight into economic strengths and opportunities. Orange County’s economy reflects a high degree of specialization in certain industries, with location quotient (LQ) data highlighting sectors where the region has a notably higher concentration of employment than national averages. These specialization areas showcase the county’s labor market's unique strengths and alignment with regional and global economic trends. The professional and business services sector stands out as a key area of specialization, particularly in architectural and engineering services (LQ: 1.5) and management and technical consulting services (LQ: 1.4). These industries are critical drivers of Orange County’s economy, fueled by the region’s demand for innovative design, engineering expertise, and strategic advisory services. Employment in these sectors is projected to grow by 8.8% and 11.2% over the decade, underscoring their significance in maintaining the county’s competitive edge23. 20 Orange County Business Council, CERF OC Regional Plan Part 1. 21 McKinsey & Company. What Is the Gig Economy? 2023. https://www.mckinsey.com/~/media/mckinsey/featured%20insights/mckinsey%20explainers/what%20is%20the%20gig%20economy/what-is-the-gig-economy.pdf. 22 Statista. Projected Gross Volume of the Gig Economy Worldwide from 2018 to 2023. Accessed January 2025.https://www.statista.com/statistics/1034564/gig-economy- projected-gross-volume/. 23 California Employment Development Department. Detailed Industry Data. Accessed January 2025. https://labormarketinfo.edd.ca.gov/Publications/REA-Reports/Detailed- Industry-Data-(ADA%20Compliant).xlsx. EXHIBIT 1