California’s economy–on a pace this year to potentially surpass the United Kingdom as the world’s fifth largest–will likely become more and more dependent on the quality of its home-produced labor force. In that regard storm clouds are on the horizon. California can possibly, as it has in the past, attract workers from other states and from other countries. That approach has been successful in augmenting its labor force in the past, although it might be less successful in the future. But with pressures to reduce immigration in general and with the increasing expense of living in California, the ability to attract high-skill workers into California may decline. Regardless, even if the current level of in-migration can be sustained, locally educated students remain the majority of those from which the future labor force is drawn. In that regard, California could be headed for trouble.