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By Kristen Brown, Executive Director, Santa Cruz Area Chamber of Commerce Last week, the Santa Cruz Area Chamber of Commerce, in partnership with Workforce Santa Cruz County, launched our new Industry-Specific Roundtable Series with a focused conversation among leaders in our local hospitality sector. The discussion was candid, solutions-oriented, and grounded in the realities facing one of Santa Cruz County’s most vital industries. Hospitality plays an outsized role in our local economy. According to Workforce Santa Cruz County’s 2025 State of the Workforce report, Tourism, Hospitality, and Recreation businesses account for 16.4% of the county’s major employers. Since 2021, employment across these sectors has grown by 22%, adding approximately 2,900 jobs. Much of that increase has been driven by significant expansion in amusement and theme park operations. By 2024, the industry supported roughly 16,200 jobs, or about 16% of total county employment, with full-service and limited-service restaurants representing half of those positions. With that growth comes both challenge and opportunity. Workforce Pipeline Development Roundtable participants emphasized the need for stronger talent pathways into mid-level and specialized roles. While entry-level hiring remains steady, employers shared that certain positions have proven especially difficult to fill. Skilled tradespeople such as painters, electricians, and maintenance professionals are in particularly high demand. Employers discussed the importance of building stronger connections with training providers and workforce partners to develop clear pathways into these roles and ensure that local talent is prepared for advancement within the hospitality industry. Workforce Housing Affordability Housing continues to be one of the most pressing structural challenges. Santa Cruz County’s housing affordability index now sits at 21%, down ten percentage points from 2020. This means only about one in five first-time homebuyers can afford a median-priced single-family home locally. By comparison, the statewide affordability index stands at 29%, underscoring the scale of our region’s housing constraints. Wage limitations make it difficult for many hospitality employees to afford living locally, and some hotel workers report holding multiple jobs to cover basic expenses. These pressures directly affect employers’ ability to recruit and retain skilled team members across industries. Transportation and Commute Challenges Transportation surfaced as a consistent point of frustration for both employers and employees. Many hospitality workers live in Watsonville or farther south and commute north for work. With only one primary roadway connecting much of the county, it is not uncommon for a 15-mile trip to take an hour or more during peak congestion. Ongoing infrastructure construction and rising traffic volumes have compounded the issue, and several employers reported that commute times have increased over the past year. These conditions affect reliability, morale, and retention, particularly for lower-wage frontline staff. Despite these challenges, the tone of the roundtable was collaborative and forward looking. Industry leaders appreciated having a dedicated space to share concerns, identify shared priorities, and explore coordinated solutions. The Chamber will use this feedback to inform our economic development strategy, workforce partnerships, and advocacy priorities. Our Industry-Specific Roundtables will continue monthly throughout the year. The next roundtable will focus on our healthcare sector, which accounts for approximately 17% percent of our County’s jobs, and will take place on March 24th. Anyone interested in participating is encouraged to reach out to Chamber Executive Director, Kristen Brown, at Kbrown@santacruzchamber.org.
By Kristen Brown, Executive Director, Santa Cruz Area Chamber of Commerce
Last week, the Santa Cruz Area Chamber of Commerce, in partnership with Workforce Santa Cruz County, launched our new Industry-Specific Roundtable Series with a focused conversation among leaders in our local hospitality sector. The discussion was candid, solutions-oriented, and grounded in the realities facing one of Santa Cruz County’s most vital industries.
Hospitality plays an outsized role in our local economy. According to Workforce Santa Cruz County’s 2025 State of the Workforce report, Tourism, Hospitality, and Recreation businesses account for 16.4% of the county’s major employers. Since 2021, employment across these sectors has grown by 22%, adding approximately 2,900 jobs. Much of that increase has been driven by significant expansion in amusement and theme park operations. By 2024, the industry supported roughly 16,200 jobs, or about 16% of total county employment, with full-service and limited-service restaurants representing half of those positions.
With that growth comes both challenge and opportunity.
Workforce Pipeline Development Roundtable participants emphasized the need for stronger talent pathways into mid-level and specialized roles. While entry-level hiring remains steady, employers shared that certain positions have proven especially difficult to fill. Skilled tradespeople such as painters, electricians, and maintenance professionals are in particularly high demand. Employers discussed the importance of building stronger connections with training providers and workforce partners to develop clear pathways into these roles and ensure that local talent is prepared for advancement within the hospitality industry.
Workforce Housing Affordability Housing continues to be one of the most pressing structural challenges. Santa Cruz County’s housing affordability index now sits at 21%, down ten percentage points from 2020. This means only about one in five first-time homebuyers can afford a median-priced single-family home locally. By comparison, the statewide affordability index stands at 29%, underscoring the scale of our region’s housing constraints. Wage limitations make it difficult for many hospitality employees to afford living locally, and some hotel workers report holding multiple jobs to cover basic expenses. These pressures directly affect employers’ ability to recruit and retain skilled team members across industries.
Transportation and Commute Challenges Transportation surfaced as a consistent point of frustration for both employers and employees. Many hospitality workers live in Watsonville or farther south and commute north for work. With only one primary roadway connecting much of the county, it is not uncommon for a 15-mile trip to take an hour or more during peak congestion. Ongoing infrastructure construction and rising traffic volumes have compounded the issue, and several employers reported that commute times have increased over the past year. These conditions affect reliability, morale, and retention, particularly for lower-wage frontline staff.
Despite these challenges, the tone of the roundtable was collaborative and forward looking. Industry leaders appreciated having a dedicated space to share concerns, identify shared priorities, and explore coordinated solutions. The Chamber will use this feedback to inform our economic development strategy, workforce partnerships, and advocacy priorities.
Our Industry-Specific Roundtables will continue monthly throughout the year. The next roundtable will focus on our healthcare sector, which accounts for approximately 17% percent of our County’s jobs, and will take place on March 24th. Anyone interested in participating is encouraged to reach out to Chamber Executive Director, Kristen Brown, at Kbrown@santacruzchamber.org.