Pasadena Rejects Expanded Local Hiring Definition, Despite Regional Pressure

City officials will recommend keeping local hiring requirements limited to Pasadena residents only, rejecting proposals to expand the definition across multiple neighboring communities.

The decision comes despite ongoing regional collaboration efforts. Data included in a report prepared for Tuesday’s Economic Development and Technology Committee meeting shows the city has enough workers.

Employment figures tell the story. Pasadena has 3,854 construction workers available for 1,807 job openings, according to U.S. Census Bureau data from 2024.

City staff analyzed four expansion options, including the Foothill Workforce Development Board service area, Hollywood Burbank Airport project cities, a five-mile radius, and the Pasadena Unified School District boundaries.

The school district option would have been the most expansive. It encompasses Pasadena, Altadena and Sierra Madre, plus portions of Los Angeles County across 15 ZIP codes.

That expanded area contains 9,172 construction workers and 4,222 job openings.

But city analysts concluded expansion wasn’t necessary. The recommendation: Data shows there are enough local workforce to meet local hire goals.

The First Source Hiring Program dates to 2004. It requires city-funded projects to hire 15% of labor from Pasadena.

Private developers can participate voluntarily. Projects exceeding $50,000 qualify for construction tax rebates up to 75% of total construction tax paid.

The incentive can be substantial. A $15 million project pays $288,000 in construction tax at the 1.92% rate and could receive up to $216,000 back.

Seven active projects currently use the program. Two medical office buildings on South Fair Oaks Avenue lead the voluntary participants.

USC Keck Medical Office Building employed 17 Pasadena residents, paying $1.1 million in wages. Huntington Health Medical Office Building hired 18 residents for $424,314 in wages.

Five affordable housing developments operate under mandatory requirements. Adobe Communities’ Centennial Place achieved 13.23% of wages paid to locals with 28 Pasadena employees.

Current code restricts qualified hires to city residents for at least one year prior to project commencement.

City officials plan to improve the existing program instead. Marketing and outreach will increase to promote participation.

A newly launched economic development dashboard will track First Source Hiring data. Coordination with the Foothill Workforce Development Board will strengthen.

City officials may create a construction coordinator position. The role would help businesses meet local hire goals across multiple departments.

Job seekers can register through the city’s online form. Foothill Workforce Development Board connects them with active projects.

The Economic Development and Technology Committee meets Tuesday at 5 p.m.