FRESNO, Calif. – When Hurricane Katrina slammed into New Orleans in 2005, the disaster broke open a discussion about poverty in America. Roughly 50,000 people in the city lived in neighborhoods where the poverty rate exceeded 40%.
That was a finding from a Brookings Institute report called “Katrina’s Window: Confronting Concentrated Poverty Across America.” While it showed the deep poverty that existed in the city dealing with disaster, it also found the poverty wasn’t confined to just that region.
The report, which was released 20 years ago in October, found Fresno had a 43% rate of concentrated poverty — the highest rate in the nation. New Orleans came second.
Decades after that report, Fresno continues to grapple with a higher-than-average rate of poverty. Some estimates suggest more than 20% of residents still live even below the poverty line. But some say the city has started to turn the page as it leverages modern technology.
Agriculture is the economic backbone of California’s vast Central Valley, and yet new research confirms what so many residents here already know: that the region is not economically as stable as one might expect from such a vibrant industry.
In 2023, agricultural production in just Fresno County reached a record $8.59 billion, marking the fourth consecutive year of growth. The Valley produces approximately 25% of the nation's produce and nearly half of the nation’s fruits and nuts. This local industry also employs hundreds of thousands of people.
But the work is often seasonal, and availability fluctuates. That strikes at the heart of a question facing the Valley’s economy: how can such a vital industry flourish when the labor market is among the most distressed in the nation?
The Economic Innovation Group studies so-called “distressed places” around the country and reports roughly 7% of California’s population lives in areas struggling with poverty, educational attainment and lack of employment. The figure rose one percent from the year before, and much of the Valley is considered in the distressed labor market category.
Chris Zeitz, vice president of the Fresno County Economic Development Corporation, said he is not surprised the region is categorized as distressed.
He said the region experiences so-called economic swings but it has qualities that can make for a strong economy.
“The first is the potential, the access to resources, the strategic location, the potential to have a good quality of life here because of those resources, because of the proximity to mountains, the coast, [and to] really great food,” Zeitz said.
Fresno hasn’t managed to escape its past. But there have been strides in recent decades to implement new economic strategies.
The city was the only one nationwide to secure both a “Good Jobs Challenge” grant from the state, and a “Build Back Better” grant from the federal government in 2022 – which pumped in millions of dollars in investment to generate jobs and boost the economy.
That investment sprouted the Farms, Food, and Future (F3) Initiative, which consists of universities, nonprofits and businesses working to elevate the Valley’s ag industry by embracing emerging technologies and training the future workforce. The effort is designed to keep Fresno competitive in the global market, according to regional leaders. Some credit a growing philanthropic movement for highlighting opportunities for investment.
Fresno may also have something in its favor that may help stem the economic challenges it has faced: it still offers more affordable housing compared to other California cities. Economic experts say this can make the region attractive for workers and businesses alike.
But employment remains a challenge nonetheless. The latest figures show the unemployment rate in Fresno is nearly 8%, and is among the highest rates when looking at the state’s key regions, according to the California Labor Market Review.
“We have a perennial problem of underemployment. These are individuals who are working multiple part-time jobs in an effort to create a living wage for themselves and their families,” Blake Konczal, the Executive Director for the Fresno regional Workforce Development Board, said.
Konczal said the region’s precarity also rests on the fact that its largest industry – agriculture – relies on a precious resource: water.
“To the extent that the state can have a rational water policy that allows for agriculture while respecting the environment, that'll bode well for us,” Konczal said.
Konczal said that the emphasis on Fresno’s economy shouldn't be on struggles or shortcomings, but rather on strengths. The city is the site of construction for the state’s high-speed rail which is already transforming its downtown core and promises to do more of it. Gov. Gavin Newsom also committed funding in the state’s new budget to help revitalize the city’s downtown.
Konczal said despite persistent economic challenges that have been accumulating for years — even generations — Fresno is still growing. He asserts that Fresno has what it needs to secure a stronger future, despite the trends.
“The solution for Fresno resides in Fresno,” he said.
This story was produced by Israel Cardona Hernandez as part of an internship program through Fresno State’s Media, Communications and Journalism department.
