Labor Market Trends

1. Labor Market Trends 3.3

2. Occupational Trends • Job market shifts to what the economy is producing • History • Agricultural • Factories • Heavy Industry, corporations and unions • Electronics • Computers

3. Service jobs vs. Manufacturing jobs • Service industries rise • financial, on-line, health care, restaurants, hotels, consulting • Manufacturing jobs move overseas to reduce costs • Result • fewer unskilled/semi-skilled jobs • more skilled/professional jobs

4. Changing Worker • 1950s American Worker • White male, high school graduate, works 40 hours/week for 20-30 years at the same business • College Graduates • People need human capital to get a job • Education, training or experience • Learning Effect- More education= more $ • Screening Effect- College education shows employer the worker is smart, dedicated, and can complete tasks • Opportunity cost between future earnings and cost of tuition

5. Women • Increased education = higher human capital = higher earnings • Roles have changed (Housewives to professionals) • Rise in costs require two incomes • Rise in divorce rate requires women to be self supportive • Temporary Workers • Largest employer of workers (Contingent) • Flexible can easily add & subtract as needed • Paid less • No Benefits

6. Trends in Wages and Benefits • College education is almost a requirement • Degree still leads to minimum pay entry level jobs • Wages are higher for Skilled and Professional jobs • Wages are lower for unskilled and semi-skilled jobs • Foreign competition • Benefits are more expensive • Companies either cut benefits, hire temporary workers, or move overseas to maintain profits