Editor’s Note: Gregory C. Scott is president and CEO of Community Action Partnership Orange County, a nonprofit working to stabilize, sustain and empower individuals and families out of poverty.
Orange County is known for its thriving economy, entrepreneurial spirit and vibrant communities. Yet behind the facade of affluence lies a reality we can’t ignore; poverty has significant costs on our businesses, workforce and future.
A Cost That Ripples Across Business
Today, nearly 1 in 4 Orange County residents live in or near poverty, according to American Family Housing.
For many employers, that statistic is more than just a social issue—it’s a business challenge.
When workers can’t afford housing near their workplaces or transportation to get to their jobs, businesses struggle to recruit and retain talent. In fact, a recent UCI-OC Poll found that 51% of Orange County residents are considering leaving, with women, residents under 40, non-white individuals, and those without a college degree most likely to cite housing costs as the reason. Losing this portion of our workforce threatens the very foundation of our local economy.
The crisis is compounded by housing affordability. According to the California Legislative Analyst’s Office, the monthly payment for a mid-tier home in California now exceeds $5,900, an 82% increase since January 2020. For a bottom-tier home, payments surpass $3,600 per month, up 87% in just four years.
The result is a growing number of working families who cannot stay rooted in Orange County and businesses that must absorb the high cost of employee turnover.
When families are forced to choose between paying rent or buying food, small businesses lose out on potential customers. And when food insecurity and unstable living conditions lead to preventable illnesses, our health care system shoulders the financial burden. These aren’t isolated problems; they ripple through every sector of our economy.
Why the Business Community Should Care
Poverty isn’t a “them” issue. It’s an “us” issue. The MIT Living Wage Calculator estimates that a family of four in Orange County requires more than $127,000 annually, or about $61 per hour for two working adults, just to meet basic needs without falling behind. By comparison, the federal poverty guideline for a family of four is just $31,200, according to government data.
The gap between what it costs to live here and what’s considered “poverty” underscores the reality: thousands of families who are technically above the poverty line still cannot make ends meet.
This reality shows up in our businesses.
Financial stress is a silent business burden. It accounts for more than $300 billion annually in health care costs, absenteeism and reduced performance. Notably, 40% of job turnover is attributed to stress – and workers who experience high stress incur health care spending that’s nearly 50% greater than their less-stressed peers, according to a study by University of Massachusetts Lowell.
Health care providers absorb billions in avoidable costs tied to poor nutrition and housing instability. Even the retail sector feels the pinch when families can’t participate fully in the local economy.
The Anti-Poverty Summit: Turning Awareness into Action
That’s why Community Action Partnership of Orange County (CAP OC) is hosting the first-ever Anti-Poverty Summit next month. The October event will be a day of action designed to bring business leaders, policymakers and community advocates to the same table to tackle this crisis head-on. The summit will focus on real, tangible solutions in three critical areas: affordable housing, economic mobility and food security.
Consider this: every dollar invested in preventing food insecurity saves more than double in future health care costs. Workforce housing initiatives directly impact employee retention and productivity, which in turn drives bottom-line growth for local companies. And creating pathways to economic mobility builds a stronger, more resilient economy that benefits everyone.
Smart Business Leaders Invest in Their Community
The “business of poverty” isn’t about charity, it’s about smart investment. By addressing the systemic barriers keeping thousands of Orange County residents from thriving, we strengthen the economic engine that drives our region’s success.
This October, we have an opportunity to stop viewing poverty as a side issue and start treating it as the economic priority it is. The Anti-Poverty Summit isn’t just for nonprofits or policymakers—it’s for CEOs, small business owners, and industry leaders who understand that the health of their companies is directly tied to the health of their communities.
A Call to Action for Orange County’s Business Leaders
Join us for the Inaugural Anti-Poverty Summit: A Day of Action to End Poverty in Orange County, on Oct. 2 at UCI Beall Applied Innovation. Together, we can build a county where every resident has the resources and opportunities they need to thrive, and where businesses have the strong, stable communities they need to grow.
