Senate Committee on Labor, Public Employment and RetirementEnrique Lopezlira, Ph.D.UC Berkeley Labor CenterMarch 11, 2026 Weak job market US paychecks not keeping up with inflation California paychecks not keeping up withinflation Low-wage workers make up a large share of the workforce Around 1 out of every 3 (35.2%) Californiaworkers is paid a low wage 35.2% of California workers earned less than$19.69 in 2022 That’s about 5.6 million low-wage workers in2022 Monthly rent affordable for households of selected income types in California, United States in 2025 (inU.S. dollars) Average rent affordable for different income type households in California, U.S. 2025 Job impacts of $20 billion cut in federal Medi-Cal funding “Lost Jobs” reflects theelimination of some jobsthat exist today, as well Note: Given the phase in of changes in HR1, actual employment impacts phased in overseveral years HR-1 cuts to SNAP Almost 1 in 7 people in California rely on SNAP (5.5 million or 13.9%). LaborCenter Public Cost model over the years has shown low-wage workers areenrolled in SNAP at greater rates (e.g. Health Care, Construction, Early $186 Billion in cuts in 10 years. Bill will decrease enrollment for low income families and vulnerable populationsthrough new administrative barriers: changes in eligibility requirements, changes 5-year freeze to Thrifty Food Plan and eliminated exemptions will decreasepurchasing power of SNAP increasing hardship for families, farmers, and the California depends on immigrants California is home to more immigrants than any other state in the country oAbout 10.6 million immigrants live and work in the state, more than one in every four (27%)Californians Immigrants disproportionately contribute to California’s economy oThe immigrant share of state GDP is 32% – over $1 trillion of economic output annually oUndocumented immigrants alone generate about 5% to California’s GDP. It’s 9% whenaccounting for the ripple effects of their labor, such as purchasing power, across theeconomy. They also pay about $8.5 billion in annual tax revenue for state and local budgets Immigrants are an essential and growing part of the California labor force o33% of the state’s workers and 40% of its business owners are immigrants, a share that hasin each case grown since 2000 Contributions will become even more important as California’s population ages. oWithout immigrants, California’s labor force would have decreased since 1994 Thank you elopezlira@berkeley.edu