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21.2%
Unemployment rate among eligible teenagers
The Challenge
Artificial intelligence (AI) and automation are reshaping the skills employers expect from entry-level workers across San Diego’s economy. As technology changes routine tasks in sectors that have traditionally provided first-job opportunities, young people need earlier exposure to AI, digital tools, and the durable human skills that complement them. At the same time, employers report persistent difficulty finding candidates with the right combination of technical knowledge, digital fluency, and workplace readiness.
The challenges are particularly significant for young workers. California has one of the highest teen unemployment rates in the country, with a 21.2% unemployment rate among eligible teenagers, according to the Prebys Foundation. The national average for unemployment of people ages 16–19, in comparison, is 14.6%, according to June 2026 U.S. Bureau of Labor Statistics reporting.
It is crucial for students to receive modernized career readiness learning that can adequately prepare them for the new digital workplace. The lack of work-based learning opportunities in San Diego is hurting employers’ ability to find capable talent. Skills gaps are associated with 56% of entry-level hiring challenges. A revised approach to career education should thoroughly prepare the new generation for the AI-powered workplace.
The Solution
To tackle these challenges, the San Diego Regional Economic Development Corporation (EDC) developed The New Entry Level: Building a Future Ready Workforce in the Age of AI.
The initiative connects employer demand to student learning through four integrated components. First, employers identify how AI and emerging technologies are changing entry-level work and define the competencies students will need in the future workforce. Education partners then translate those competencies into classroom learning opportunities. Students apply their knowledge through employer-informed work-based learning experiences and finally demonstrate their skills through an AI micro-credential developed and refined with employer input.
During the pilot phase, employers from healthcare, business services, computing, engineering, manufacturing, and life sciences will help identify cross-sector skills that are increasingly required across industries. These insights, combined with labor market research and San Diego Regional EDC's annual Talent Demand Survey, will inform the development of employer-validated competencies that can be integrated into existing career-readiness pathways.
Participating students will engage in work-based learning experiences that connect classroom instruction with real-world applications of AI and provide opportunities to learn directly from employers. Up to 200 students will participate in these experiences while also working toward an AI micro-credential that demonstrates proficiency in employer-defined competencies, communication, critical thinking, and workplace readiness.
Employer Partnership and Collaboration
At the center of the initiative is a commitment to employer-led design.
San Diego Regional EDC will convene employer working groups to define the skills, competencies, and experiences students will need to succeed in an AI-enabled economy. Rather than serving solely in an advisory role, employers will help shape competency frameworks, inform curriculum development, validate credential requirements, and participate in designing work-based learning experiences.
The initiative also creates a structured partnership among employers, educators, and workforce organizations. Partners including the San Diego Unified School District, Border Region K–16 Collaborative, and implementation partners like United Way of San Diego County and Junior Achievement of San Diego County will help integrate employer-defined competencies into existing learning pathways and student experiences.
As workforce needs evolve, employers and education partners will continue to review and refine competency frameworks using labor market data and program outcomes. This collaborative process ensures that student learning remains aligned with changing employer demand and industry priorities.
Scaling and Impact
The New Entry Level Initiative is designed to create both immediate student opportunities and long-term systems change across the San Diego region:
- Strengthening employer engagement in K–12 career-connected learning by positioning employers as proactive co-design partners rather than reactive advisors.
- Expanding access to AI-focused work-based learning opportunities that help students connect classroom learning to real-world applications.
- Developing employer-validated competency frameworks that can be embedded within existing education and workforce pathways.
- Enabling participating students to earn a credential that signals readiness for an evolving workforce.
The New Entry Level provides access to high-growth and high-wage career pathways to underrepresented groups. It offers students from opportunity populations—specifically low-income students, future first-generation college students, and English language learners who make up 53% of San Diego County K–12 students—the chance to participate in work-based learning in ways that they have not previously been able to access.
Rather than creating a stand-alone program, San Diego Regional EDC is embedding this work within existing career-readiness infrastructure. By integrating employer-defined competencies into established pathways of 15 industry sectors and leveraging regional partnerships, the initiative is designed to support long-term sustainability and provide a model that other communities can adapt to meet their own workforce needs.
Why the San Diego Regional Economic Development Foundation?
The San Diego Regional Economic Development Foundation serves as the nonprofit affiliate of the San Diego Regional EDC and has a long history of advancing sustainable employment in San Diego County.
The EDC has engaged more than 600 businesses in workforce research and Talent Pipeline Management® activities and placed more than 800 students in paid internships through Advancing San Diego. San Diego Regional EDC engaged employers to verify postsecondary programs that collectively enroll approximately 70,000 students, extending the reach and willingness of employer engagement beyond an advisory context for education and workforce alignment across the region.
When describing the organization’s vision for the New Entry Level, Bridgette Coleman, senior manager of talent initiatives at the San Diego Regional EDC, described that the initiative’s work-based learning component should “move beyond limited, one-off experiences” and thoroughly prepare all students to enter the developing, AI-powered economy.
The New Entry Level is built on a simple premise: students are best prepared for the future of work when employers help define the skills, experiences, and credentials that shape career preparation.
By bringing employers, educators, and workforce partners together around a shared vision, San Diego Regional EDC is creating a framework for career-connected learning that reflects the realities of today's labor market while preparing students for tomorrow's opportunities. As the initiative unfolds, the lessons learned may help inform how other communities approach AI literacy, workforce readiness, and employer-led pathway development.
Learn more about the Pathways with Purpose initiative.
